• Agreement for selling of flat

I have flat in Pune which I intend to sell. The buyer has to get home loan. So he has offered to pay a token amount and make an agreement with me.This agreement he will submit in bank to obtain bank loan and will ultimately pay me. Please guide me if this is the right process. And for how long is this agreement valid. I mean if he is unable to get bank loan and is linguring the issue. After how much time can I go with new buyer.
Asked 4 years ago in Property Law
Religion: Hindu

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13 Answers

Ask purchaser to get Home loan per approved

Approval of loan takes time

Validity of agreement for sale should be 3 months

Get agreement drafted by Lawyer

Ajay Sethi
Advocate, Mumbai
87895 Answers
6207 Consultations

5.0 on 5.0

1) Before making an sale agreement, ask him to get bank home loan sanction letter on his name. Here bank mentioned that hiw much loan is granted to particular man according to his Income. And that sanction letter validty is six months.

2) If he shows you Bank Loan sanctioned on his name than you can make the sale deed. If payment is not completed in the next six months than this agreement will be void and cancelled on payment ground. Don't give possession till final payment is received.

Ganesh Kadam
Advocate, Pune
12335 Answers
191 Consultations

4.9 on 5.0

You can make a duly stamped and registered agreement. This is general procedure followed for bank loans for purchasing house.Once bank gets the agreement it sanctions the loan and on sanction the bank shall verify the property by physical verification and then after signing agreement of home loan by buyer the bank give the cheques, and requirement of bank will be of sale deed.

In agreement to sale you can specify the period like of 45 days or 60 days in which the buyer have to pay you complete amount otherwise the Agreement stands cancelled.

And you can keep a clause also for refunding the amount of token.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Hi, in the agreement the date of sale deed has to be mentioned .. There is nothing wrong in it , he will remain bound by the agreement and if he fails to obtain loan and register sale deed his initial amount shall be forfieted as per the agreement

Hemant Chaudhary
Advocate, Gurgaon
4619 Answers
67 Consultations

4.9 on 5.0

1. The procedure is okay.

2. Mention proper clause in the agreement, wherein you can cancel the agreement after so-and-so months.

Keep Smiling .... Hemant Agarwal

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

1. First you have to enter into an An Agreement of Sale with the prospective buyer by receiving atleast 10% of the sale consideration.

2. Before signing the agreement of sale you should ensure that the following conditions are inbuilt in the agreement of sale:

(a) Sale consideration

(b) Time for completion

(c) Mode of payment

(d) Breach of contract and specific performance clauses.

(3) Before signing the Sale Deed ensure that you have received the entire sale consideration.

Shashidhar S. Sastry
Advocate, Bangalore
4166 Answers
258 Consultations

5.0 on 5.0

The agreement for sale will be valid till the date up the validity of agreement as per the agreement about the party both of the parties may agree for the period of this agreement to be valid normally very long period is not considered safe so it is better to put Maximum 2 to 3 months to complete the loan process and bank will pay you directly and they won't be enter in the registration deed.

In case he cannot erase the loan within the specified period that should be exit class in the agreement and to for fieture of the token amount

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

1. The process is right but do not make any agreement with a token amount.

2. The earnest money to be paid at the time of sale agreement must be 20%-30% .

3. if they buyer pays a nominal amount he may delay the execution of the sale deed and your property may remain encumbered for long.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

Contact a local to draft this agreement for sale for you, and include all the necessary points/clauses to safeguard your position.

Give the proposed seller a decent time frame so as to enable him to make the payment of the requisite consideration to you, under this agreement.

Get this agreement duly stamped and registered.

Vibhanshu Srivastava
Advocate, New Delhi
9426 Answers
245 Consultations

5.0 on 5.0

Ask the current buyer to take information and required forms from bank to apply for Home Loan. Meanwhile you two being parties get an agreement for sell. The buyer will get loan based on the documents and othe fulfilled requirements.To get loan he need to fulfil certain requirements. If he fulfil those requirements and the bank is satisfied then the bank will approve the home loan. The time is dependent on the fulfillment of the requirements.

If you are in urgent need to sell the flat then discuss it with the buyer so that he doesn't delay in fulfilling the requirements.

Clauses in the agreement will also help you in this regard.

Moumita Mitra
Advocate, Kolkata
366 Answers
1 Consultation

4.0 on 5.0

Yes this is the right process.

this will be valid for the time specified in the agreement

Mention that the same will becomes invalid after 3 months, or whatever time is agreed by you two.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

Instead of this agreement with him alone, you may enter into a tripartite agreement with the buyer and the bank so that the bank shall pay the sale consideration amount directly to you instead of the buyer paying it to you.

This will be safest way of transacting with the sale of the immovable property in the event of the buyer is paying through bank home loan.

T Kalaiselvan
Advocate, Vellore
78050 Answers
1543 Consultations

5.0 on 5.0

Approach the said bank and take the same in writing that for securing loan they require agreement to sale. You need to execute the sale deed once you receive the balance amount. It valid till sale deed. Both documents need to be registered.

Prashant Nayak
Advocate, Mumbai
27224 Answers
88 Consultations

4.4 on 5.0

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