SHould the buyer pay for the sellers outstanding loan on the property - Indian Real Estate Forum

hunthouse · 18-08-09

Hi,

Buyer and Seller have agreed on a price. The seller has an outstanding loan in the bank on the property. Seller suggests the buyer to pay for the loan before registration, in order to release the documents.

Is this a common procedure..? What are the risks.? Can anyone suggest better solutions..?

If the seller insist to pay for the loan as advance, is there a legal way to handle/document this transaction..?

thanks.
hunt

api consultants · 09-09-09

Hi,

It depends how u r doing deal and with whom u r doing.. is there any broker involved in this... For a safer side.. one has to make an agreement at the time of bayana... There are two case...

1. If person u find a reliable you can pay the outstanding loan amount signing the agreement..
or
2. You ask the seller to pay the outstanding loan first...

regards

ashish

reals8 · 10-09-09

I would suggest you rather let the seller sort out the loan & it's fomalities after mutual agreement between two parties. Other case- if you trust the seller still discuss with bank with whom the loan is outstanding about your intentions to buy & pay back so they can process it accordingly.

meetmeat4 · 15-09-09

You may execute an agreement for sale with the proposed seller and also simultaneously excute the Power of Attorney in your favour to make the balance payment to the bank. The NOC received from the bank can be returned to the seller at the time of execution of the sale deed

18-08-09	#1
hunthouse New Member Join Date: Aug 2009 Posts: 2 Thanks: 0 Thanked 0 Times in 0 Posts	SHould the buyer pay for the sellers outstanding loan on the property Hi, Buyer and Seller have agreed on a price. The seller has an outstanding loan in the bank on the property. Seller suggests the buyer to pay for the loan before registration, in order to release the documents. Is this a common procedure..? What are the risks.? Can anyone suggest better solutions..? If the seller insist to pay for the loan as advance, is there a legal way to handle/document this transaction..? thanks. hunt

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09-09-09	#2
api consultants New Member Join Date: Sep 2009 Location: New Delhi Posts: 1 Thanks: 0 Thanked 0 Times in 0 Posts	Hi, It depends how u r doing deal and with whom u r doing.. is there any broker involved in this... For a safer side.. one has to make an agreement at the time of bayana... There are two case... 1. If person u find a reliable you can pay the outstanding loan amount signing the agreement.. or 2. You ask the seller to pay the outstanding loan first... regards ashish

10-09-09	#3
reals8 New Member Join Date: Aug 2009 Posts: 35 Thanks: 1 Thanked 0 Times in 0 Posts	I would suggest you rather let the seller sort out the loan & it's fomalities after mutual agreement between two parties. Other case- if you trust the seller still discuss with bank with whom the loan is outstanding about your intentions to buy & pay back so they can process it accordingly.

15-09-09	#4
meetmeat4 New Member Join Date: Sep 2009 Posts: 2 Thanks: 0 Thanked 0 Times in 0 Posts	You may execute an agreement for sale with the proposed seller and also simultaneously excute the Power of Attorney in your favour to make the balance payment to the bank. The NOC received from the bank can be returned to the seller at the time of execution of the sale deed