I am in the process of purchase of a flat. The seller has made an agreement to sale(purchase) with the builder. The sale deed is not yet executed, since the builder has not yet received completion certificate from corproration. The seller has also obtained loan from a bank for purchase of flat.
Now I wish to purchase the same flat. I also have to take loan from bank for purchase of the flat.
My question is whether it will be sufficient to make "agreement to sale" with the seller for obtaining the loan from the bank. Because the flat is not yet transferred in the name of the seller. And bank loan is still outstanding on the said flat.
Asked 3 years ago in Property Law from Nashik, Maharashtra
Since the seller is not the absolute owner of the flat still can he enter into agreement of sale of flat. Whether the builder should be a party to the agreement of sale.
Asked 3 years ago
Generally all the banks allow loans on the basis of agreement to sale. However you need to take care of the previous outstanding loan with the bank of the seller.
You can either get the previous loan shifted to your account so that you won't have to take a fresh loan. Or you may ask the seller to settle the previous loan and then get a fresh loan from another bank. In either case the title of the property must be clear. The Builder, You and Bank will enter into a tripartite agreement whereas the original sale deed will be delivered to the bank till the completion of the loan.
You may simply approach the bank from where you want to obtain the loan with all the relevant papers and they will guide you through.
Subject to what Mr. Bora has advised, you may also contact the bank from whom you wish to take the loan for their conditions for grant of loan and the documents required.