Raghavender (Software Consultant) 19 July 2012

Can i sell a flat purchased on home loan 5 years back

I want to sell and clear away the out standing Home Loan. I appreciate if somebody can guide me on this and list out the steps involved. There is no default of payment till now. Market value could be 40 Lacs and outstanding HL is 11 lacs. Thanks in advance. - Raghu

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D.V.RamaKrishna (Advocate) 19 July 2012

Mr. Raghavender,

You can sell your flat provided ether you first clear off your HL Debt first or intimate the bank about your proposal to clear off the debt by selling the flat in which case the bank may ask you to first enter into an agreement of sale with the prospective purchaser and then ask the prospective purchaser to deposit the sale consideration equivalent to the amount due by towards loan account directly into the bank by way of a bankers cheque/demand draft. In any case ensure the correct amount due till the date of sale and also obtain a No Due Certificate from the bank about clearing of the debt.

D.V.RamaKrishna SARMA,

Advocate, Hyderabad.

9963099555