Transfer of property from husband to wife as a parting gift.

In case, the potential buyer plans to pay for the property through his own savings and does not want to take a home loan, the procedure is pretty straightforward. The seller first needs to obtain a letter from the bank with which the property is mortgaged, stating that the bank agrees to relinquish the property documents after the full and final payment of the loan. The buyer will then be required to pay an amount equivalent to the outstanding loan to the seller's housing loan account, after which the process of releasing the documents by the bank is initiated.

The time given to the seller to make the payment can be worked out between the seller and bank. The bank specifies a date by which the seller must make the full payment. If the money is not transferred to the loan account by the due date, the bank can extend the date and charge a penalty or premium over and above his outstanding principal.

"Though the prepayment penalties have been done away with, the seller incurs additional cost by way of a premium that's besides the outstanding amount if the remaining sum is not paid to the bank by the prescribed due date," This additional amount is usually decided by the bank before the fixing of the due date.

Once the borrower pays off all the dues, he receives the 'no due' letter from the bank. This document certifies that there are no outstanding dues on the housing loan to be paid. The original documents kept with the bank as security are usually released over a period of 5-10 working days of receiving the money.
 However, at any point of time, a borrower should have a photocopy of all the documents he has submitted to the bank at the time of loan application