• Sale Agreement vs Sale Deed

I wish to purchase a flat which is currently under cosntruction. I submitted housing loan documents to my organization with the following pattern:
Sale agreement = Rs x
Sale deed = Rs x1
Supplementary agreement = Rs x2
Construction agreement = Rs x3
where x = x1+x2+x3
 The loan department rejected this pattern and asked me to submit only sale deed for Rs x and informed they wont consider supplementary and construction agreement. I informed since this is a house under construction, sale deed cannot be equal to sale agreement. They havent agreed.
My queries are 
1) Is the pattern being asked by loan department logical since this property is under construction
2) Are there any legal, financial implications if I submit sale deed for Rs x

Thanks and Regards,
Asked 7 years ago in Property Law
Religion: Other

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6 Answers

1) there is no financial implications if you submit only sale deed

2) sale deed would contain the total consideration to be paid by you

3) loan would be sanctioned as per your eligibility, total sale price of flat

4) not necessary to furnish construction agreement

Ajay Sethi
Advocate, Mumbai
96808 Answers
7811 Consultations

Dear Client,

Your pattern is not applicable, loan shall be granted on registered sale deed, mortgage at bank, are u buying a plot or constructed house/flat.? Registration fees of sale deed will be charged on the value of complete constructed property.

Only by mortgage the sale deed, loan will be approved on the basis of total consideration paid/ price paid for to buy a house shown in sale deed.

For loan approval , sale agreement have no worth.

Yogendra Singh Rajawat
Advocate, Jaipur
22989 Answers
31 Consultations

Please check the terms used in the agreements.

In normal course if the Flat is under construction Sale agreement and the construction agreement along with your financial eligibility documents are enough, but as you have mentioned the Supplementary agreement the terms in the agreement should not conflict with the Sale and construction agreements.

Rajashekar
Advocate, Bangalore
591 Answers
4 Consultations

1. The pattern varies from department to department and there is no set thing for the same, you may pursue the department.

2. there is no legal implication if you submit a sale deed for X

Regards

Anilesh Tewari
Advocate, New Delhi
18090 Answers
377 Consultations

Sir , bank has its own rules and principles in sanctioning a loan . Therefore a bank will accept your application only on their condition, so try to follow their rules.

Hope my reply helps you.

Johnu Kanta Bhuyan
Advocate, Guwahati
194 Answers
3 Consultations

Whether the property is under construction or not there has to be a sale consideration amount fixed on the property proposed to be purchased?

You have to mention the sale consideration amount that will be found mentioned in the sale agreement or the sale deed

The supplementary and construction agreement are not matter of sale consideration for the purposes of loan

T Kalaiselvan
Advocate, Vellore
87007 Answers
2335 Consultations

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