anand (executive) 03 February 2011

Registration of Sale Agreement

Hi
I am going to purchase one flat in an appartment. The seller has taken loan from the bank, and 75% of the loan is still outstanding.
I will be paying 50% of property value myself and for 50% will be taking loan. He wants me to make 50% payment early during Sale agreement so that he can close his outstanding loan and balance during registry. Seller will give possession after registry.
Should this be done ?? as i will not be having anything and he would be having 50% amount.
Is Registration of Sale Agreement a safe mode of doing so?
Should i give him the cheques on his name or insist for cheques in favour of his loan account.
I want 100% safety of my money and at the same time do not want to loose the flat. Please advice urgently.

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4 Replies

ALI M M (Senior Consultant) 03 February 2011

DEAR,

SINCE THE FLAT IS ALREADY MORTGAGED WITH A BANK, EVEN IF YOU ENTER IN TO THE AGREEMENT OF SALE DULY REGISTERED YOU WOULD NOT GET ANY RIGHTS COS, THE BANK WILL HAVE THE 1ST CHARGE. BETTER YOU TALK TO THE BANK IF THEY ARE READY TO RELEASE THE PROPERTY TO YOU DIRECTLY IN CASE OF YOU PAYING THEM THE OUTSTANDING ON THE LOAN.....

WITH OUT THE CONSENT OF THE BANK IN WRITING, YOU WOULD BE LANDING IN IRRETRIEVABLE RISK.

Bharatkumar (ADVOCATE ) 03 February 2011

First u direct pay a loan mount in the bank and then take a NOC or No Due Certificate from the Vevdor bank then u registered a Agreement For Sale. In between u make a one agreement with Vendor that u direct pay your loan amount in your bank and then Vendor registered a Agreement for Sale in your (Purchaser) favour.

Deekshitulu.V.S.R (B.Sc, B.L) 04 February 2011

You get the sale agreement registered. In that slae agreement you get it mentioned that 50% of the sale price is paid in advance for paying the Bank loan of the vendodr. Take a D/d for the loan amount in favour of the Bank and get the same mentioned in the agreement. The Bankwill then close the account of the vendor and deliver the title deeds. Then go for registration at your convenience.

sanjeev kumar (cleark) 06 February 2011

If possible get loan from seller's bank to your name for 75% amount and pay 25% to seller. Than prepay 25% loan to your banker.

Please be cautious to get the flat vacated before payment so that possession can be taken immediately on payment date other wise seller can take payment and possession will become difficult for you as normally finding a new house will take time and things changes very fast when money involved. (if we think pessimistically). These are practical steps as I am a banker. For any thing written on paper is referred to court which take years to resolve or we have to compromise despite being right.