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mahesh patwal (EXECUTIVE)     20 November 2012

Need clarity on resale purchase flat registration procedure

Hello Dear Members,

I need some guidance from you regarding purchase of resale flat. I wish to buy a resale flat in mumbai and advance payment/earnest money is being paid to the seller. For balance sale consideration amount i wish to take a loan from bank. Bank has advised me to make an agreement of sale , pay the stamp duty and get it registered. Only then they will send it to their respective legal department for further procedures. Now i have few queries which are as mentioned below :

  • Is it compulsory to make the payment of stamp duty and get the property registered before sending it to bank for loan approval process?
  • I understand that there is a difference between agreement to sale/sale agreement and sale deed (Sale deed transfers the title of the property to buyer). Will i have to again execute a sale deed with the seller of property once the final disbursement payment is made by the bank on my behalf to the seller? Will i have to again get it registered with the sub-registrar? Do i have to pay the stamp duty and registration fees once again on the same property? Please advise.
  • In case i've already made part payment from my own sources and for part i have applied to bank for loan. Can i directly enter into a sale deed/conveyance deed with the buyer?? Or full sale consideration needs to be paid for executing the sale deed. Please guide.

Looking forward to your kind help.







 7 Replies

Yogesh Anand (Head- Legal AVP)     21 November 2012

For taking loan from bank for purchase of flat you first have to get the Agreement to Sell executed and registered by paying stamp duty and registration charges.  thereafter apply for loan.  bank will pay the balance amout to the seller and the flat will be registered in your name by way of sale deed for which you shall have to pay balance stamp duty and registration charges.  then you will mortgage the flat with the bank by depositing all the documents relating to the flat including sale deed and all previous related documents.

Ajit Singh Cheema (practising Advocate)     21 November 2012

No , for sending loan proposal to the bank only an agreement to sell is required. Agreement to sell has to be made by paying applicable stamp duty which differs from state to state .

The registration of agreement to sell is not compulsory.

The stamp duty and the registration fee has to be paid onlyonce , on executing the sale deed .

Normally ,the part payment made is considered as its margin money and the bank finances the balance amount.

The sale consideration is the full sale price,that is amount paid at the time of agreement to sell and the balance being paid on executing the sale deed.


rashmi_2010 (Advocate/Corporate Consultant)     22 November 2012

For taking loan first you need to enter into agreement to sell for which registration is not mandatory. Based on the consideration mentioned in the agreement to sell and other factors bank will decide your loan amount after which bank will issue a loan sanctioned letter. Total amonut u wuld be paying would be mentioned in sale deed which is compulsory for registration.

surjit singh (Assistant)     22 November 2012

If I am not wrong as per a recent judgement of supreme court an agreement to sell should also be registered.

mahesh patwal (EXECUTIVE)     22 November 2012

Thank you very much to all for their help and advice.

Which i understand from your comments that i'll have a enter into a agreement to sale with the buyer (on which total sale consideration amount of the property will be mentioned, even if i'm making only the part payment from my own sources and remaining will be financed by bank) and will have to pay the stamp duty & registration charges on the whole sale consideration amount after executing the agreement to sale.

Then when the sale deed/conveyance deed comes into picture?? WIll i have to enter into sale deed/conveyance deed when part of the payment is financed from bank. Do i need to register this sale deed as well and will have to make the payment of registration charges.


Please advise...... 

Aatish Gawas (Sr. Engineer)     21 December 2014


We are going to buy resale flat in new panvel area which not comes in cidco.Flat papers are good.Plot is NA.

Flat cost is 25,30,000/- (1 BHK - 635 sqft).

As per rules stamp duty is 6% of flat cost which is 151800/-

But our agent is telling that we have to pay this amount online but receipt for same will get generated for amount 78000/- only, as it is resale flat at seller is going to do registration two days prior to us, as he has not registered yet.

Is there any provision as such?

Agent is asking to transfer stamp duty money to his account as he has account in IDBI bank and its only bank through which we can pay stamp duty online.

Kindly advice. Its very urgent.

VIJAY KUMAR (SERVICE)     18 September 2016

Hello dear member,

I am in the process of selling my 1bhk flat at mangalore, now buyer shown interest of Rs25 lakhs with full payments with bank loan.  I have bank loan of Rs.8.50 lakhs and buyer shown interest in paying the full payment directly to bank after making sales agreement of Rs.25 lacs. Bank will deliver the original agreement after 15 days, but  buyer demands the possession of the flat on same day after making payments to bank Rs.8.5 lacs with some other payments of 1.50 lacs on same day and planning to make balance balance of Rs.15 lacs after registration of docs means 15 days.

As per buyer, making payment to bank of Rs.8.50 lacs he dont have any guarantee of possession of flat OR original documents registration, hence he need flat possession immediately on part payments.

I feel this method would not be safer for me, some guys suggested to take PDC cheque of Rs.15 lacs, but if buyer deny for balance payments can I do some thing after this process, else pls advise me how to deal such a situation.



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