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Shivshankar (Proprietor)     14 February 2013

Sale agreement

Please help me out:-

A party arrived to me for sale of a Goods vehicle.The Vehicle is under hypothecation of Tata Finance Ltd.The party was paying EMI of Rs.10000/- .A huge dues against above loan is due with Tata finance Ltd.Now he is unable to make the payment of the said EMI and wants to enter in a sale agreement with me for the sale of above vehicle on the condition that i will pay the future EMIs. 

Now the question is whether it is possible to enter into a sale aggrement with him?

If answer to the above question is yes  then what is the proceddure? 

What communications or order are required from TATA finance Ltd ?

What are the risks involved if i enter into agreement without intimitading TATA finance Ltd and whether this agreement without NOC of Tata FInance limited is a valid agreement?



Learning

 2 Replies

K. GOPALAKRISHNAN (ADVOCATE)     14 February 2013

Dear Shivasankar. Not advisable to purchase the vehicle which is under the hypothecation with TATA Finance. Better to close the loan in TATA Finance and cancellation of hypothecation endorsement in the RC Book of the Vehicle and transfer the vehicle in your name after obtaining signatures from the necessary RTO forms from your friend and register the vehicle in your name. If your friend is ready for the above arrangements you may go head in purchasing the vehicle. Regards,

RAJIV MALHOTRA (MD/CEO)     17 February 2013

Now in this situation I would ask you to do things preference wise:

a. First take full information about the loan.For that you have to go to the tata office with the person who financed the vehical(the seller) and ask for the full statement till yet ,then you will know how much is the loan amount, how many emis have been paid and rest which you have to give.


b. Now see can u be able to pay the emi ,if you take the vehical, if no. Deal closed.: if yes then there would an aggreement done with seller, you and tata, that loan is beeing transfered in your name and now onward the vehical's rest loan will be paid by you. vhicals ownership would be transfered to you in the company a/c.

c. and you have to give your signed cheques ,of your a/c.Then An NOC will be given to you by tata. on basis of that NOC you can transfer the vehica's ownership in the R.C. in the RTO office.

d. all legal things in tata office can't be done without the seller's presence.


Note: It is not advisable to do such transactions,

coz you willnever know what % rate you will give the emis. The prvt banks policy is:

on 1st emi amount 80% is interest & 20% is principie.

on second emi 78% would be interest and 22% principle,

till yet the first owner would have given approx 75% of interest if he has given atleast 16-17 emis.

there is a chart of every finance co. if you can get the Tata finance chart. which they dont give, you wil never come to know the real status of the loan, and Rate.


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