Exclusive HOLI Discounts!
Get Courses and Combos at Upto 50% OFF!
Upgrad
LCI Learning

Share on Facebook

Share on Twitter

Share on LinkedIn

Share on Email

Share More

JD (abc)     10 January 2013

Procedure to purchase registered mortgage property with bank

I am planning to buy a residential property from the buyer who has mortgage (registered mortgage) this property along with 5 other property for huge loan and has default.The origanl documents are with the bank with whom the property is mortgage and is ready to cancel the charges and handover the orignal documents on payment of a agreed amount which is a very small amount of the loan taken.Kindly advice on the steps to be taken to execute this transaction. 



Learning

 3 Replies

Adv.R.P.Chugh (Advocate/Legal Consultant (rpchughadvocatesupremecourt@hotmail.com))     10 January 2013

If the mortgagee is up for it, then you can enter into a sale deed after getting an NOC, which the bank would do after assigning the loan to you. 

RAJU O.F., (Advocate)     26 January 2013

Get the property valued through an approved valuer of the bank and take up with bank for release of the property from mortgage on consent. If bank agree you have a tripritite agreement with owner, buyer and bank for the sale of the property, by which the value of the property would be directly paid to the bank by the buyer.

roger fredrick (senior advocate)     16 February 2013

With due respect I wish to differ From Mr.Raju who has advised that bank may allow release   of its charges from the subject property. My client faced the same situation wherein he had agreed to bring seller for one of the mortgaged properties  and bank collected the sale amount from the buyer after due valuation process.But it declined to release the title deeds saying that it would not release the title papers till all the other assets of the borrower are sold.  My client requested the bank to retain the title papers and issue NOC pertainting to that property,but his request was turned down with the reason that the partial release of mortgage is not  possible in this case. Though the buyer got the possession of the property he could not register it in his name.


Leave a reply

Your are not logged in . Please login to post replies

Click here to Login / Register