You need bank NOC for sale of flat
2) without bank NOC sale would be contrary to terms of your loan agreement and bank can take legal proceedings to set aside sale deed
Signing of registration deed prior to release of mortgage of the deed
Suppose I have a property which was purcglhses by loan from a housing finance Say balance loan is 10, lakhs If I want to sell and if the proposed buyer has in principle loan sanction And they are ready to issue balance amount cheque in favour of the original finance institution Now 1)Can I sign the registry with potential buyer 1)Before the loan is repaid byvthe bank and then the deed will be sent directly to be mortgaged by the banor 2) Legally first cheque is to be given and property de mortgaged and then deed sent to bank Wha is my legal.position under prevalent provisions with respect to sign the sale deed And also after signing agreement in such case I have to give a copy to my financial institute or just a letter
Asked 3 years ago in Property Law
Religion: Hindu
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9 Answers
The seller first needs to obtain a letter from the bank with which the property is mortgaged, stating that the bank agrees to relinquish the property documents after the full and final payment of the loan.
The buyer will then be required to pay an amount equivalent to the outstanding loan to the seller’s housing loan account either by his own cash or through his bank loan after which the process of releasing the documents by the bank is initiated.
The balance sale consideration amount shall be paid by the buyer to the seller on the date of registration of sale deed in his favor.
- You can register conditional sale deed in favour of buyer incorporating that the sale deed is executed will take effect on realization of cheque amount. You can add condition that, in case of cheque is not realised sale deed will be deemed to be revoked and 50 per of the paid sale consideration will be retained as penalty. Such sale deed are in practice.
- Property will be mortgaged only on receipt of entire sale consideration.
- It is matter of proper drafting of sale deed, if properly drafted your rights can be secured fully.
- You need to take prior consent of your lender.
Yes you can sign the same but the bank will not give noc and title papers till the loan is completely repaid. Yes above observation is correct
But prime concern is that by merely giving letter to the lender and prior to actual repayment either by seller or the buyers bank is signing of Sale deed legal and practically applicable without invoking any action from the original.lender I was told by some agent that there is provision to go for registration and the original lender will send deed to buyers bank But from the Registrar's view without demortgage are such deeds legal
Asked 3 years ago
It's legal only if the performance is done and loan is repaid
Sale deed is not legal as written consent of original lender is necessary as property is mortgaged to bank
Lender bank giving prior consent will sign the sale deed through its authorized agent. A consent can be granted in that way. Lender will cancel MODT Memorandum for deposit of title deed executed between lender and borrower and return the original title deed to the buyer.
Dear Client,
Equitable mortgage is created by the borrower in favour of the lender by deposit of title deed of immovable property as security to a lender until the loan is fully repaid. This creates a charge on the property, though no legal procedure is involved.It may be noted that while a normal standard home loan Agreement does not require registration with the office of the sub registrar of assurances Under Registration Act, it will be mandatory in the case of a Mortgage Loan.A mortgage by deposit of title deed does not require registration.A sale deed is a legal document that proves that a property has been transferred from the seller to the buyer. The registration of sale deed concludes the property purchase process.Once the buyer and the seller reach an understanding to enter into a property transaction, they draft an agreement, which puts in place the terms and conditions based on which the transaction would take place.This document is known as sale agreement or agreement to sell or agreement for sale.
Thanks & Regards
The procedure for executing the sale deed under this circumstance has been clearly explained in the previous posts.
You may consult a local advocate having experience on the subject matter for more clarity and suitable opinion/suggestions in this regard on all such further issues.
Do not be misguided by any agent's false promises.