1. you are right. the bank demand draft is issued in the name of seller simultaneously at the time of registration

2. you need to talk and confirm with the buyer's lender bank

3. also have a clause recorded in your sale agreement that the last instalment of purchase money will be paid after registration within ____ days of registration and if the buyer fails to so pay then the agreement will stand terminated automatically and seller will not be liable for the stamp duty and registration fee paid by the buyer.

4. also write that in the event of aforesaid termination, seller will be entitled to deduct 10% from the sale price and forfeit the same and refund the balance without interest to the buyer. Also buyer will have to execute a cancellation agreement with the seller and all expenses will be borne by the buyer and on failure thereof, the said expenses can be recovered from the purchase money so far paid by the buyer

5. also state that possession of flat will be handed over only on full and final payment. Till then possession will remain with you

6. tell the buyer to incorporate the aforesaid clauses in the sale agreement

Dear Client,

Before buying the property, He must have applied for loan, so it`s common and duly processed that cheque details are provided by bank, so can be included in sale deed.

Mode of payment is essential part for draft of sale deed.

Certainly cheque will be delivered by bank after sale deed mortgage with it and even banks deliverers the cheque at time of sale deed under stop payment.

Make sure payment on same day.

Better to take cheque at time of registration Since banks will give cheque to the seller directly and take the original in their possession after the property is registered in name of purchaser. Also the sale deed will contain that you have received the entire consideration amount for which you will affix signature so later.to recover the amount you may face problem. So it's advisable not to affix signature on sale deed till the cheque is handed over to you on the day of registration.

Refuse se to agree to terms suggested by buyer

Demand draft should be paid at time of registration of sale deed only

This is my advise to you:

1. The full and final payment has to be made at or before the registration;

2. If so, ask him to give you a cheque of that much amount which you can encash later;

3. Otherwise do not register the property;

4. You should enter into a 'Agreement to Sell'then later a 'Sale Deed';

5. Take his word in writing on affidavit which should be notarised even if you trust him;

6. Do not make oral agreements, always do it in paper.

The bank gives cheque on the agreement only the sale deed is registered after the bank gives the demand draft and later the buyer submits the original documents with the bank.

No i donot find it legitimate, see the process for bank loan is that the buyer and seller can make an agreement of sale base on agreement to sale the bank processes the loan and demand draft is issued and on completion of registration the buyer submits the original deed to bank. Nowhere i came across the transaction where deed is registered prior the consideration amount for bank a sale agreement can be made and registered based on that he will get loan later on getting amount you can register a sale deed.

Further in sale agreement also mention the time period give to buyer for paying the amount if in time he does not gets loan cleared and pays amounts the agreement stands cancelled.

So just enter into a agreement to sale for purpose of bank sell deed should be executed on receipt of amount.

Better to ask the bank to give in writing that.They have approved the loan and that they will have you over cheque after registration is completed. In case they refuse to give in writing better to not to go ahead with registration.

Just an acknowledge that loan approved by the bank, and cheque details and delivery.

just request the bank to issue a letter to you that the balance amount will be disbursed to you after the registration is done.

attach that letter to the sale agreement

Yes a copy of demand draft along with that a clause specifying this condition of loan should be specifically added in sale deed if so is the case with bank. Further bank will give demand draft after sale agreement and and before sale agreement.

Refer my previous answer the sale agreement and sale deed are different bank for loan will ask for registered sale agreement but the sale deed is registered after agreement is complete consideration is received. Sale deed reflects sale is complete where as sale agreement shows that seller has agreed to sale so for bank loan sell agreement is needed to be registered a sale deed can be registered after you receive the amount.

Don’t sell the flat if payment is not being made at time of registration of sale deed

In alternative deliver possession of flat only after full payment is received by you

1) Normally now a days the property is transferred on buyer's name and same registered papers he mortgage with bank and then bank issue a cheque or DD on seller's name.

2) You can confirm with buyer's name from which he had applied for home loan and take home loan sanction letter from bank. So you will come to now that how much home loan bank is going to release to buyer. You can compare the home loan amount plus you have received amount and flat cost. If this all matches than no need to worry.

Yes, please do it before you get the property registered on his name.

As even if the bank Cheaques are to be given/over in the future then also it details at least be in the agreement.

Who knows that after the registration the person would say he is not getting loan.

Though nothing would take away the right over the property for the seller, but still it’s better to avoid unnecesaaary litigation. So, please do inquire from the bank.

The bank on the basis of the documents and recommendation by the panel advocate may sanction the loan and would issue the cheque on the same day of registration,

The buyer is trying to create a new story on his own, you may not agree for this.

You can ask him to produce a letter from the bank sanctioning the loan and the payment details, or you can accompany the buyer to the bank and verify the position personally

If you are not satisfied then you dont proceed.

Alternately you can mention the registered sale deed a clause stating that the payment by bank to be confirmed within a stipulated time from the date of registration or else the execution of this registered sale deed shall remain automatically cancelled.

This condition can be imposed.

Yes, you can get the confirmation from the bank about the sanctioning of loan and date of payment of cheque towards sale consideration in writing so that you can proceed or else you may hesitate to do it.

there are two types of agreement

1. sale deed and another is

2. agreement for sale

there are bit difference in two

sale deed is usually made when full payment is made and the agreement for sale is an agreement which is executed under some special condition.

usually for taking loan an agreement for sale is executed and a clause is added that if the buying party fails to pay the remaining amount of the payment than this executed agreement will stand cancelled and the buyer will support in all possible to get this deed cancelled from the registration office.

as far as banks are concerned the had being issuing loan disbursal cheques only after getting an executed and registered agreement for sale, so there is nothing new in this.

just ask you buyer to produce a loan sanction letter and ask him to get the legal and technical and search report work done by the bank