Here in exchange deed market value of both the property is considered by bank and not the area.
So you have to check market valuation of the property.
Purchasing flat through selling my plot
Hi, I have a plot of X value which I'm planning to sell to buy an apartment that I have enquired for Y amount (higher than X). The builder of the apartment which I'm planning to buy, himself is interested in buying my plot as well. Now for the remaining amount Y - X I'm planning to take housing loan. Now, * Can we go for exchange deed even if difference is large? And will bank consider exchange deed for sanctioning the loan? * If not exchange deed, builder wants to ensure that he purchases my plot only on the condition that I purchase his apartment. What are the ways in which we can handle this situation legally? So that both parties are not at risk. Because once I sell my plot to him, I want to pay him back that amount as the margin money( as this will avoid capital gains to my plot) for his apartment and then I initiate my loan process. But how can I be protected under law if my loan process is declined by the bank for any reason, then I would be losing both my property and the money I got for it. Please let me know what are the available options.
Asked 5 years ago in Property Law
Religion: Hindu
12 Answers
1. Exchange deed will not be considered for sanctioning the loan.
2. You may enter into an mutual agreement for sale and may then sell your property to him and purchase property from him.
3. consideration given by the builder can be used by you to pay the amount of the flat and rest of the price you may take loan from the bank.
Enter into both the sale and purchase deed on the same date.
Regards
1. Yes deed of exchange can be made and registered and the balance amount or differential amount can be paid in cash or through DD.
2. This is very much permissible for the purpose of making exchange deed.
3. Since parties are same registering the deed of exchange is best option.
1. Two seperate sale is better option as in future also you have to sell your apartment so the chain documents shall be proper and good. Exchange is possible but it is better that he purchase your property and you purchase the flat by two separate deeds.
See both can enter into sale agreement mentioning consideration as your property if loan approve so on agreement to sale bank shall complete the formalities.
whatever be the difference, go for exchange deed. it will be beneficial for avoiding capital gains matter and further both of you will remain protected. it will help you to get bank loan also. if you fail to get bank loan, in that case, you can argue for cancelling the exchange deed so that you can get back your land. in that event you may have to suffer the loss of registration cost.
1. Yes. Exchange deed is ideal other wise 2 sake deed has to be executed.
2. Bank should consider the said thing. I don't find any illegality in the same
1) apply for bank loan
2) get your loan sanctioned
3) disbursal of funds can take place when you have to pay builder balance amount
4)you can sell your plot to builder
5) ask him to pay you sake consideration
6) issue cheque to builder for purchase of flat and balance amount take loan from bank
No Bank needs clear title of the property before financing so in both the cases you have to go for registration of properties this bill affect the transfer of the property you can utilise all the capital gain from the sale of the plot for purchasing up the apartment and the remaining amount of the flat may be financed by the bank on the basis of your financial documents
Dear Sir,
First get into an sale agreement in respect of his property and see that loan is sanctioned in your favour. Further you may also entered into another sale agreement in respect of your flat in favour of builder. More consultations can be had in person from any legal expert.
1. An Exchange Deed (is like a settlement deed) and is not going to work for the purposes you mentioned and neither you can claim Long Term Capital Gains (LTCG), since there is no sale-purchase component. Further for future sale /gift /transfer /donate /mortgage, the original Exchange Deed would be one single document (probably will be retained by the Builder) and you would have no Title-Deed of the properties.
2. Go Regular by executing:
a) Sale Deed, between you & builder (for your plot). Here you will gain LTCG, when you buy a new property within two years.
b) Sale Deed, between Builder and yourself (for apartment).
3. By virtue of point no. 2, you will have a clear Title Deed, on hand for all futuristic purposes like sale /gift /transfer /donate /mortgage /whatever ....
If the exchange deed is not possible then you may enter into a formal agreement with the seller/buyer on this on the terms that have been mutually agreed between you both.
For maintaining abundant caution, you may first enquire from the bank about the loan and your eligibility, if the bank is not inclined or is giving an evasive reply better stop the transaction and proceed as per your original program of selling your property first and then buying the new property. in the normal mode of transactions.
- As per the information mentioned in the present query, makes it clear that you wish to sell your land to the same builder form whom you wish to buy apartment.
- Yes, this can be done by executing an agreement to sell between you and the builder in which you being the seller can state the condition to buy his property at agreed amount within the specified period or immediate of the present sale.
- Once, it has been done then neither of the party can violate the terms of the agreement, if does then other party can file suit for compliance of the agreement before the court of law.
- And loan can be approved irrespective of the fact of the owner of the buying property.