Namita Agarwal (---) 27 September 2013

Purchase of property

I am purchasing a property from a person who is resident in UK. He has outstanding loan taken from a bank on the property. I wish to see the title deeds before making the purchase. The seller says that the bank is not ready to release the documents until the loan is paid. He has asked me to pay the loan amount first to him(which will be deducted from the total consideration later). This way I can check the title deeds. And when he visits India I can get the property registered in my name by paying the balance amount. Hi

s father is in India and the seller is also ready to grant a Power of Attorney to his father to carry out any necessary transactions, because his visit to India will be very short. Now, this person seems to be genuine otherwise. I just wanted to guarantee as to how can I, secure the amount(towards dischrge of his loan) which I am paying to him prior to the registration. How will the stamp duty be affected and what kind of documents shall I execute to secure the payment.

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adv.raghavan (Advocate,9444674980) 29 September 2013

first ask the seller to issue GPA favg his father, with the help of GPA, his father can sign sale agreement, and he can coordinate with the concerned bank,and can arrange for inspecting original documents,which is very possible in all the cases. When u are sure about the document,remit amount due to the bank directly, and do not fail to mention the same in your sale agreement, and get authorisation letter also from the GPA holder to collect original documents from the bank on clearance of your cheque to the bank. on the day of collecting documents finish off all the sale deed formalities,PROVIDED IF U R GETTING POSSESSION OF PROPERTY.ON THE SAME DAY ITSELF,if not, hold ur breath till u get the possession.