1. You should make a tripartite agreement with yourself, the Bank and also the seller wherein it will be agreed that you shall pay the entire proceeds to the Bank through a DD drawn on the  seller mentioning his said loan account no.

2. The DD for the entire proceed or the outstanding amount shall be handed over to the Bank at the time of registration of the sale deed of the property after collecting the original property documents deposited with the Bank and also 'No-Due' certificate from the Bank.

3. It is risky to handover 70% payment  before hand without the tripartite agreement and without collecting the original documents.

4. If the seller gets the oroginal documents after you pay 70% to the Bank, he might refuse or neglect to sell you the property and abscond and at that time you hardly will have any fast legal recourse to recover the said 70% payment of the salew proceed.

5. So, make the entire payment at the time of registration of the property after the original documents are returned to you by he Bank and the seller registeres the sale deed in your favour after taking the said 30% of the sale proceed.

You first registered a sale deed with registrar and than make the payment to bank. Mentioned all payment details and property details as per schedule. 

You don't need to pay first 70% to bank. First registered sale deed on your name with the help of banks NOC and show DD on bank and owners name in 70:30 ratio.

Ask seller to obtain NOC from society for sale of property 

2) also no dues certificate 

3) check whether property taxes have been paid till date 

4) whether OC issued or not 

5) agreement for sale  can be registered 

- Before purchasing a mortgaged property , you should take a photocopy of the sale deed kept in bank , and check properly , whether the seller is a rightful owner of the said property and confirm the same with the bank as well.

- Collect latest property tax receipts, water- electricity paid up bills,

- Collect a Letter from the bank where this property is mortgaged, wherein the bank states that the bank is agreed to relinquish/release the original property documents after the full and final payment has been made on the outstanding home loan.

- You can sign a Tripartite agreement with the bank and the seller , that the property papers will be transferred to your name once the loan that the owner has taken has been settled.

- Finally , dont forget to get , no objection and no dues certificates. 

Unless you pay first bank will not release the mortgage. 

So you must execute an indemnity bond with the seller to indemnify you if the seller fail and /or neglect to register the sale as sale agreement by the specified time.  Here specify the date by which the sale deed to be registered. Put sufficient amount to cover the loan amount paid by you. 

Pay to bank get the paper and then register the sale deed.  

A risky proposition. 

Even if you are in possession of originals that shall not vest title.

Regards 

G.Rajaganapathy 

High Court of Madras 

You may also enter into a tripartite agreement with the bank for discharge of loan directly to the bank on behalf of the buyer and to release the property documents  accordingly.

In any case the unregistered sale agreement may not be enforceable in law hence better get the sale agreement registered.

No the same will suffice

1. An unregistered "sale agreement" has NO legally enforceable value. IF the seller later decides to back off or cheat you, THEN you will have nil leverage against the seller.

2. Execute a REGISTERED "Sale Agreement" with strategic clauses, AFTER taking Bank conditional NOC to Transfer loan to you or repayment of loan. You as Buyer can give undertaking /indemnity bond to Bank.

3. AFTER entire payment is made or loan transferred to you, Sale Deed must be registered immediately and property possession must be taken immediately.

1. A tripartite agreement has to be executed between you, bank and seller. A property under mortgage cannot be alienated except with the prior consent of the mortgagee as charge is created in favour of mortgagee by mortgagor.

2. Nothing else is required. 

Dear Sir,

Sale screen should be registered and further after the loan is closed NOC and release from bank is required. 

Agreement to sell will execute to lock the deal on above terms. In case of default by seller, deal can be enforce through court.

Agreement shall be tripartite (seller-bank-buyer) and it will mention in agreement that original docuemtns will hand over to buyer and sale deed will register by seller on same or next day of docuemtns released/mortgage freed.

before going to buy the flat or any property you have to verify and to get legal opinion on such documents of the property from the property lawyer and it is better registered the sale agreement. 

Dear

You should first pay 30% to seller and then on time of registration of property pay rest 70 % to bank and get the papers for registration.

And sale agreement will be enough because bank will not handover the documents to buyer.

You should mention that cheque has been given by you for clearance of bank loan 

2) enter into registered agreement for sale 

3) you can file suit for specific performance in case buyer fails to honour the deal

1. Property which is already Mortgaged to Bank, CANNOT be sold and neither any deal /transaction /unregistered deed can be executed, since it would constitute a criminal offence of Cheating, Breach of Trust etc....  AVOID getting entangled in legal disputes which is very time and money consuming.

See MOU can be made for same and cheques can be taken it shall protect you so that you donot loose your amount. After loan is cleared and NOC is obtained the property can be registered. 

pay 70 per cent directly to bank for clearance of bank loan obtain bank NOC and seller can execute registered sale deed in your favour 

2) you can take un dated cheque with covering letter 

Agreement can be notorised on 500rs stamp valid. Sub registrar will not execute sale deed without bank NOC as encumbrance (mortgage) is showing on property.

Better manage bank with tri partite agreement. That will made directly to bank on registration of sale deed. But bank employees are sucks, will certainly impede the release of documents even after loan cleared. So execute, tri partitie agreement, than once loan cleared and simultaneously sale deed register, all original docuemtns will hand over to you and only seller will be paid.

Collect cheque from seller.

Before finding ways to convince bank, priority is to secure your payment.

The cheques so obtained may not be maintainable on the grounds that there's no legally liable debt.

This will be a risky affair as well.

In case of any litigation to recover money, it may take years to get the case settled.

Think over it and decide wisely.

You may better enter into a tripartite agreement with seller and bank in this regard and then proceed.

The format for this type of agreement would be available with the bank or your advocate.

Obtaining blank cheques or post dated cheques may not be advisable without an agreement.

You can make a MOU with the seller wherein you can make condition of same that you are clearing loan and on NOC you will pay rest of the amount to seller and he shall register the property to you. 

Also you can take security cheques for same .

I already advised you to execute indemnity bond for adequate amount.  That is the best way to dealing with mortgaged property.  

1. This is the reason why tripartite  agreement as advised in my earlier post is registered.

2. In the Ordinary course, the Bank Manager accompanies the parties to the Registration office and collects the DD for recovering the outstanding loan amount and hands over the mortgaged documents/mother deed.

3. Bank will not accept the cheque for returning the mortgaged papers/deed.

1. If you pay off the loan amount of the seller, he might refuse to go to the Registrar's office to register the sale deed.

2. This is why you should register/execute the tripartite agreement and hand over the DD to the Bank and also the seller after and only after the sle deed is registered by the seller who is the defaulting borrower of the bank.