Executing sale deed for a mortgaged property
KESHAV MAHESHWARI
(Querist) 16 February 2015
This query is : Resolved
Dear Sir(s),
I had bought a property in Ahmedabad. The seller is having home loan on that property and I contacted Axis Bank for my home loan application,who told me that they will pay to the bank by Balance Transfer. Now axis bank is ready with cheque of Sellers bank to foreclose that loan but subject to condition of Submitting sale deed between me and seller party. However when I contacted by advocate, he told me that you cant execute sale deed, when your property is encumbered. So first you have to get a release deed from Seller's bank and based upon that sale deed will be executed. However, axis bank is insisting that I have to prepare sale deed first and later on I can get cheque for seller's bank, based upon which Seller's Bank will give me all original documents available with them. And on submission of original docs to Axis Bank, balance cheque will be given to me.
Please guide who is right and what should I do now?
kavksatyanarayana
(Expert) 16 February 2015
@AUTHOR, WHATEVER YOUR ADVOCATE SAID IS CORRECT. YOU HAVE TO BUY THE PROPERTY WHICH IS NOT ENCUMBERED. BUT THE SELLER WAS ALREADY TAKEN LOAN ON THAT PROPERTY AND HENCE IT SHOULD BE RELEASED BY THE BANK CONCERNED.
Rajendra K Goyal
(Expert) 17 February 2015
The Bank in right to release Housing loan only for the unencumbered property.
You, seller, and Banks of both may draw out acceptable strategy for releasing of your loan.
Till you deposit unencumbered title deed with your Banker, Bank may ask acceptable guarantee of their loan.
If your Bank is not agreeing on any of your proposal, move to some other Bank (preferably public sector Bank), all the Banks and some institutions like LCI are liberally giving Housing Loan.
T. Kalaiselvan, Advocate
(Expert) 19 February 2015
Agreed with the opinions of experts, you may go by the advise of your advocate.
KESHAV MAHESHWARI
(Querist) 20 February 2015
Dear Sirs,
Thanks a lot for your advice.
Processed the things in the manner as suggested by all of you and my advocate. For bank, I had given joint confirmation duly notarized with 100/- stamp that once we will execute a sale deed and get all the docs from other bank, we will immediately submit all the docs to your bank and than only the bank will release the cheques of balance amount.
K.K.Ganguly
(Expert) 22 February 2015
1. Your advocate is right,
2. The mortgaged property can not be dealt with without writtenconsent of the mortgagee bank,
3. Make a tripartite agreement with you, the owner of the property and Axis Bank wherein you shall be bound to deposit the sale deed with Axis bank at the Registration office,
4. Also apply to the mortgagee Bank to give consent to you for the said sell subject to their receiving payment at the registration office after the sale deed is registered,
5. You can also ask the Owner to transfer the loan to Axis Bank by sending the original Title Deed to Axis Bank and in that event the said owner can take consent from the Axis Bank for registration of the sale agreement and its deposit with them.
