Seller as guarantor for buyers loan till documents are handed over
I am selling my unregistered flat in Bangalore to a buyer. My property already has a loan and buyer is also taking up a loan from a different bank. We are past the initial formalities and at the stage where buyer is getting his loan sanctioned. Buyer's bank (SBI) wants me to be Guarantor for his loan for until I submit the original documents at the time of registration, post which they will provide me with a Gurantor release letter. I am worried for a few reasons :
1) Is this common practice for unregistered property, where seller becomes Gurantor untill documents are handed over ?
2.) I already see that there is a credit query on my CIBIL from SBI, and they intend to make me Gurantor on CIBIL also, will this not affect my borrowing capacity and credit score ?
3.) While SBI will give me Gurantor release letter, will they be removing the record from my CIBIL ?
4.) In the event of an unfortunate mishap with the buyer during the time I am a Gurantor - How am I protected ?
5.) what is the alternative here that is safe for both buyer and seller ?
Thank you for your response in advance.
Asked 7 days ago in Property Law