Rajan (se) 24 February 2012

Buying a property which is morgaged already

Hi all,

I am in process of buying a house property from house owner.while processing owner told that he has taken laon on the property and it is morgaged.

He is insisting to pay the money in advance so that he can settle his loan amount and give the original document and then go for registration.

Please help me that whether i can buy this property with beleing the first house owner(seller).

what steps should be need to take to have a hold of the first house owner (seller)

thanks in advance.

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3 Replies

Kishor Keshav kini (senior consultant ) 24 February 2012

get a registered agreement to sale with full stamp duty pay the entire balance of loan outstanding as part payment of agreed price and then deposit the amount in to the said bank which has prior charge and obtain no dues certificate then pay thje balance price and get the final sale deed executed in your favor.

advocate kini

Kumar Doab (FIN) 24 February 2012

It shall be appropriate to check all the documents of the property e.g. previous registree, fard /intkaal, loan agreement, fresh loan a/c statement etc and inquire from the institution with which the property is mortgaged.

The institution shall issue NOC and release original documents of the property after all terms and conditions of the mortgage are satisfied.

Let a competent and experienced lawyer draft the agreement for you, and include in agreement that seller shall clear the loan by dated……….and supply NOC issued by institution by dated………..along with original registree of the property. Your lawyer shall take care that your interest is protected.