I found a Plot to purchase for 60 lakhs. But, the owner took Loan of 50 lakhs on the Plot and the Documents are with Bank. The bank not releasing document without paying the Interest of 20 lakhs. In this case, How I should buy the Plot? 1) Should I buy from bank by paying full amount to bank? (later bank will pay off him after-debt amount) 2) Should I buy from owner by paying him advance so he can pay off interest, release document? - What is the best way to secure my advance payment? Please advice.
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1) enter into agreement for sale with the owner to purchase the plot for Rs 60 lakhs
2) apply to bank for loan for purchase of the plot
3) the bank would sanction your loan and regsitered sale deed entered into with the seller wherein amount of loan would be paid to bank and balance if any to the seller
4) you cannot buy from the bank as property is only mortgaged to the bank but owner continues to be the seller
1.Make an agreement with the seller and make a part payment of rs.20lac.
2.on this amount the bank would release the mortgage and ahdpver the document.
3.then you make the registered ala deed and complete the sale.
Now the property is a charge to bank. If want to buy the property then entered in to a sale agreement for buying the property from owner. All the details about the loan, sale amount, duration for execution of the sale deed etc..are clearly mention in the agreement.
The same time meet the bank officials and search the full liability for closing the loan. If you need cash for purchase the same then apply a purchase loan.
1) Should I buy from bank by paying full amount to bank? (later bank will pay off him after-debt amount)
You can buy the property only from owner after discharge the liability .
2) Should I buy from owner by paying him advance so he can pay off interest, release document?
You can entered in to agreement for sale to owner paying advance and try to settle the loan by approaching the bank with the help of owner
Enter into a registered sale agreement, pay the advance sum of Rs.20.00 lakhs and very clearly state in the agreement that the seller shall pay and clear off the bank loan and get the original documents back within X number of days, after which you can proceed to register the plot into your name. This is a very uncomplicated and simple way of buying this plot, which is encumbered with the bank.
Instead of paying bank or the vendor, you enter into a tripartite agreement with both mentioning that you will pay the bank all the dues and to pay the vendor the balance of sale consideration amount and after bank releases the document and gives NOC, the vendor may execute the registered sale deed on your name.
1. Since the property is mortgaged with the bank it cannot be sold by the owner without the consent of the mortgagee i,e bank. If you can satisfy the bank about your credit worthiness then it may allow you to substitute yourself in place of the present mortgagor.
2. If you pay the outstanding loan directly to the bank then the mortgage will be cleared.
1. you should prepare a contract and pay the owner the remaining sale amount after paying 20 lakh to the bank. this the prevalent method in purchasing of such type of property.
Should I buy from owner by paying him advance so he can pay off interest, release document?
you can do so but must prepare a contract before paying the sale amount. because if he commits fraud or breach of contract then you can recover it from him.