• Sale deed

Dear Sir

I have executed a sale deed for purchase of a flat located in Jamshedpur. In this case the seller is my father who is not dependent upon me and the property is self acquired. 
For the purchase of the flat I had applied for a loan from one of the public sector bank. The loan was sanctioned. Based on the loan sanction letter, I had made the payment for initial margin through NEFT/ cash and for the remaining amount for which was the sanctioned amount under the housing loan I had issued a post dated cheque. Keeping loan sanction letter as the basis, vendor (my father) agreed for the registration of the sale deed. In the sale deed both the parties have acknowledged the receipt of the payment. 
Upon receipt of the registered sale deed from the registrar office, the same was submitted at the bank branch and request was made for the disbursement of the loan. 
Bank has orally informed me that this is a case of reimbursement of  housing loan which is not permitted as per their policy and hence the loan is not disbursed. In this regard I would like to know two things:
1) Can I still get the loan from the Bank? If yes, in what way the case may be represented?
2) Can I cancel the current sale deed and re register the property in my name? I am aware of the fact that the stamp duty will not be refunded.
Asked 2 months ago in Property Law from Jamshedpur, Jharkhand
Religion: Hindu
1) you can apply to another bank for housing loan if your bank is refusing to disburse the loan 

2) parties can  execute deed of cancellation of the sale deed
Ajay Sethi
Advocate, Mumbai
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1220 Consultations
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1) deed of cancellation is required to be registered 

2) you have to approach another bank for loan 
Ajay Sethi
Advocate, Mumbai
23328 Answers
1220 Consultations
5.0 on 5.0
1.  Grant of loan is purely the discretion of the bank manager.
If in his opinion, the loan cannot be granted for any reason, he will stick to his policy till the end. 
Therefore instead of arguing with the bank on this, better try for loan from any other bank who will be ready to grant the same with lesser formalities. 
Though the grant of loan is governed by a common rule, the banks have been authorised by RBI to implement their own policies as well owing to the tough recovery aspect. 



2.  You cannot unilaterally cancel the sale deed for such reasons. The cancellation of sale deed depends on various factors. 
T Kalaiselvan
Advocate, Vellore
14138 Answers
127 Consultations
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What is the process for cancellation of the sale deed. The property is now already registered. Will other bank give housing loan even after registration is done

Why do you want to cancel the registered sale deed?

The vendor and the buyer have to be present before the registrar for cancellation of registered sale deed with a joint application.
If the registrar refuses to cancel the same, then you have no option than to aproach court with a suit for cancellation of registered sale deed with the reasons you rely upon by impleading the registrar as defendant. 
T Kalaiselvan
Advocate, Vellore
14138 Answers
127 Consultations
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1. You acted casually. When you apply for bank loan you execute an agreement to sell and on the basis of it the loan is sanctioned and disbursed by the bank to the seller subject to its positive due diligence and then you go to execute the sale deed but you executed the sale deed without waiting for disbursal of loan. So why would the bank give loan now.

2. Inquire from the bank if it will disburse the loan if the sale deed is now cancelled.
Ashish Davessar
Advocate, Jaipur
18167 Answers
449 Consultations
5.0 on 5.0

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