Selling land which is mortgaged to bank
(Querist) 24 August 2023
This query is : Resolved
I mortgaged my land with PNB bank via MODT legal things and took 25 lakhs loan and i am paying monthly interest regulary.
I want to sell my land to some other party who is willing to buy @90 lakhs at todays rate.
I dont have money to close the loan and get the documents.
How should I proceed with the sale.
1. Should i borrow initial money from the other party who is interested to by the land and close the loan and get my documents from bank and hand it over to the othre party?
2. should i transfer my loan to other party who will lose the loand and pay the remaining amount.
please feel free to suggestions.
(Expert) 24 August 2023
You may request the buyer to give you advance and with that sum, you can repay the loan amount. There is no problem.
T. Kalaiselvan, Advocate
(Expert) 25 August 2023
You can enter into an unregistered sale agreement , get an amount as advance , repay the outstanding loan amount with interest, retrieve the title documents and then transfer the property in favor of the buyer by executing a registered sale deed on the basis of the sale agreement conditions.
(Expert) 29 August 2023
To my knowledge, there is legal bar in selling land that is mortgaged. However, the property would continue to be a security against the debt. The prudent course is clear the debt before the deed is executed.
It is not necessary that the original sale deed be produced in order that the conveyance is executed.