kiran 11111 (Executive) 14 January 2011

Clearing loan on property

My friend intend to purchase piece of agricultural land in the state of Maharashtra.He has identified the piece of land and have hold preliminary talks with the vendors on formalities to be completed. He has also obtained record of right papers and title documents of the property. On perusal of the documents , it is seen that land is mortgauged to SBI for obtaining a loan. How he should proceed to go further to complete further technalities? What steps should he take to avoid further litigation and complexities?

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2 Replies

A V Vishal (Advocate) 14 January 2011

The loan needs to be cleared and a release deed of the land from mortgage should be obtained before proceeding further.

daman preet singh (advocate) 14 January 2011

it is established rule that before entering into any contact of the property that, the title of the property must be cleared. the buyer must have clear title before transfering the property. so documents of property must be releasd from bank before entering into any contract. it is advised not enter into the contract