ask buyer to obtain sanction letter from bank for loan
2) once loan is pre sanctioned then only enter into agreement with buyer
3) disbursal of loan does not take time .
4) if it is reputed bank you should get your money
How to safeguard against final payment delay for selling under construction property
I have a flat which is under construction , I have a buyer ready to buy the flat. We have agreed on a price. Below is the procedure mentioned by the builder for flat transfer. •NOC from Bank to be obtained as you have taken bank loan mentioning they do not have objection you selling the apartment’. •Copy of the NOC received from bank to be given to builder. •On receiving NOC, we will give consent for selling the unit. •Clear all the payments which is done by you except registration charges and legal fee. •5% of agreement value with applicable GST to be paid in favour of builder as transfer fee. •On receipt of the transfer fee, we will send the draft of Deed of assignment and Deed of Nomination letter, which we request you to fill in all the necessary details in and forward it back to us for our approval. •Once we approve, the deed of assignment has to be executed by you on Rs.200/- stamp paper (3 sets in original – One for seller, one for buyer and one for us). •In case your buyer is applying for bank loan, upon checking with the banker, you have to arrange for the stamp paper accordingly pertaining to his set, if the requirement of stamp paper is to the extent @0.1%. •Deed of Nomination letter can be taken on white sheet duly filled in. •Please handover the Deed of assignment (3 sets) with Deed of Nomination letter duly signed by you and purchaser (all applicants signature is must). •Our authorized signatories will sign the same after which will hand over 2 sets of Deed of Assignment to you , out of which one set to be handover to your buyer. •New applicants have to fill our application for allotment along with Photographs, ID Proof, address once the transfer is done. •We will not be executing any document in your buyers name except the Saledeed. All documents like allotment notice, agreement has to be handed over to your buyer and if any bank documents required for the buyer will not be able to sign the same in the standard formats. The buyer has said that , He has talked to his bank for loan and they said they will clear my bank loan first and then transfer the remaining amount to me. How do i ensure payment to me and also that it is not delayed ?
Asked 2 years ago in Property Law
Religion: Other
5 Answers
The conditions what the builder has notified is the usual process to be complied strictly
in the given situation.
Once the buyer's bank is clearing the outstanding loan to your banker, and the banker furnishing NOC, then the buyer's bank will release the remaining amount in your favor.
- Since, the said flat is not registered in your name by the builder , then legally you have no legal right to sell it to anyone under the Transfer of Property Rights Act.
- Since, the buyer is agree to purchase the said flat , hen you should approach her builder and request him to make changes in the Builder-Buyer Agreement and transfer the ownership rights in the name of buyer after getting payment for the same.
- Further, once the full payment of loan amount is made to your bank , then the said bank will issue NOC to the buyers bank for releasing the loan amount to you , on behalf of the buyer.
You don’t give possession unless you get full payment
Dear Client
Sale Agreement: Ensure that you have a legally binding sale agreement in place with the buyer. This agreement should outline all the terms and conditions of the sale, including the sale price, payment schedule, and the timeline for completion of the transaction.
Escrow Account: Consider using an escrow account to facilitate the transaction. An escrow account is a neutral third-party account that holds the funds until all conditions of the sale are met. The funds are released to you once the conditions specified in the agreement are satisfied. You can include a clause in the agreement that requires the buyer to deposit the entire sale amount into the escrow account.
Legal Consultation: Consult with a qualified lawyer experienced in property transactions. They can help you draft a sale agreement that protects your interests and complies with Indian property laws. They can also provide guidance on the legal aspects of the transaction.
Verification of Buyer's Financial Capability: Before proceeding with the sale, verify the buyer's financial capability to pay off your bank loan and complete the purchase. You can request financial documents and bank statements to ensure that they have the necessary funds or loan approval.
Letter of Undertaking: Ask the buyer to provide a Letter of Undertaking from their bank, confirming that they will clear your bank loan and transfer the remaining amount to you upon the completion of the sale. This letter should be legally binding and can be included as an annexure to the sale agreement.
Advance Payment: Consider requesting an initial advance payment from the buyer as a sign of commitment. This amount can be deducted from the total sale price upon completion of the transaction.
Monitor the Bank Loan Process: Stay in regular contact with the buyer's bank to ensure that your loan is being cleared as agreed upon. You may also request periodic updates from the buyer regarding the loan approval process.
Document Compliance: Ensure that all the documents required by the builder for flat transfer are completed accurately and submitted on time. Failure to comply with these requirements may cause delays in the transfer process.
Legal Action: If the buyer fails to fulfill their obligations as per the sale agreement, consult your lawyer about taking legal action, such as filing a civil suit for specific performance or breach of contract.
Registration: Ensure that the sale deed is registered with the appropriate authority to make the transaction legally valid.
