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Akshay Sonar (Parolkar) (Deputy Manager A/c & Finance)     12 October 2014

Whether sale deed can be registered on 100% bank finance

Dear All,

I have purchased residential flat (resale) and the bank have sanctioned me 100% finance on such resale transaction as per my income eligibility.

Therefore I have mentioned that the bank have sanctioned 100% finance and the Cheque details issued by bank under the payment clause.

The Bank have already prepared Cheque on the name of the seller.But the only requirement of Bank is that the Cheque will be handover when I will submit the registered document to the bank.

The seller is denied for this and asking the clarification on the same. By giving reason that such transaction is deemed to be without consideration and if we further proceed then the registration stands void ab initio. 

I hereby request you all please guide me on following:

1.Whether such transaction and registration is as per prevailing law in India or not?

2. Can we further proceed with the registration or it will cause any of one (Buyer & Seller) interest in this deal?

3. Whether such registration will stand void ab initio?

Thanks in advance.


 1 Replies

Kumar Doab (FIN)     12 October 2014

The seller is right in defending his interest.

The stand of the bank is erroneous.

It has prepared the cheque on the strength of the sale agreement showing the amount of consideration.

The bank can depute its employee that shall handover the cheque in presence of SRO during registration and if you agree he/she shall collect the original title deed then and there that you have to pledge to the bank.

The seller is under NO OBLIGATION to the bank.

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