Real Estate in India: I am selling my house to a person who is taking a home loan from Bank. He claims that I have to register the house in his name and give all the documents to the bank, and only then would I get the amount after 2 days. Can I believe him?
No
If a buyer is purchasing a property using home loan, the bank representative handover the full and final settlement on registering property in sub-registrar office. Bank representative hand over the final settlement in mode of DD or cheque in sub-registrar office.
You don’t have to wait for 2 days to receive the payment from bank.
Below are the systematic steps to be followed if buyer is opting for home loan.
Step 1: Seller and buyer sign the sale agreement.
At the time of sale agreement signing, seller receives advance payment in the mode of cheque, DD or online account transfer from buyer. The advance payment could be up to 20% of selling price
Step 2: Buyer frank the sale agreement and file the home loan application.
Step 3: Bank approves the loan in around 30 working days. Bank writes the final settlement cheque. Bank’s representative informs buyer that cheque is ready.
Buyer informs seller that final settlement cheque from bank is ready. Seller may visit bank to cross-verify final settlement cheque or ask the bank representative to share the cheque image through email.
Step 4: Seller gives the date for sale deed registration to buyer.
Step 5: Buyer prepares the sale deed draft and share the sale deed draft with seller for cross verification.
(Generally, the sale deed draft is in word format so draft can be exchanged through email or messaging app)
In the draft, make sure that bank’s cheque number is mentioned.
Draft should be mutually approved between buyer, seller, bank, and advocate before proceeding with sale deed registration.
Step 6: On the day of registration,
- Seller carries the following documents to sub-registrar office
- Ø Sale deed
- Ø Encumbrance certificate
- Ø Latest tax paid receipt
- Ø Khata certificate and extract
- Ø PAN
- Ø Aadhar
Buyer carries the following document to sub-registrar office:
- Ø Challan (Stamp duty, registration charge and cess)
- Ø Aadhar
- Ø PAN
Bank representative carries following documents
- Ø Final settlement cheque
- Ø Checklist for original document collection
Step 7: Seller and buyer register the sale deed in sub-registrar office
Step 8: Immediately after the sale deed registration in sub-registrar office, bank representative hands the final settlement cheque to buyer, and buyer handover the final settlement cheque to seller.
Seller hands over all the original documents and property keys to buyer.
Step 9: Buyer do “Memorandum of Deposit of Title Deed” (MOTD) with bank representative.
Once the MOTD is registered between buyer and bank, buyer handover the ordinal documents to bank.
Following are the list of documents to be handed over to bank.
- Ø Mother deed
- Ø Sale deed
- Ø Encumbrance certificate
- Ø Tax paid receipt
- Ø Khata certificate and extract
- Ø Aadhaar copy
- Ø PAN copy
Buyer receives the acknowledgment from bank for the submission of original documents.
NOTE:
As a seller, you don’t have to wait for 2 days to receive payment. The payment, original documents and property keys are exchanged immediately after the deed registration in sub-registrar office itself.
As a seller, your role completes once you receive payment and handed over the original document and property key to buyer.
It's buyer responsibility to deal with his bank for release of loan amount and submission of original documents. Seller has no direct role with bank for release of loan and submission of original documents.
Seller do not submit the documents directly to bank. Let buyer pay the full settlement to seller and collect the original document. Buyer will submit the original documents to bank when buyer does MOTD with bank.
We provide end-to-end seller assistance. To opt for our service, please write to pgnproperties@gmail.com or Whatsapp to + 91 97424 79020
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