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Property buying from an NRI - Is it good to settle his home loan o/s?
27-Oct-2023 (In Property Law)
I am interested in buying a property of a NRI and we are getting into a MOU. One of the condition is for the buyer to settle the home loan outstanding (outstanding amount at present is ~15% of the property value, from SBI). This settlement is considered prior to the registration of the agreement for sale at the registrar's office, as the seller intends to have the outstanding cleared 15-20 days prior to his arrival for the registration as this will help him to approach the bank immediately after the registration for collection of property documents. The seller will also apply for lower TDS certificate u/s 195 and has earlier received last year as well for another property. The seller is a HNI having other properties also. However, this does present an uneasy situation for me the buyer until the seller has arrived in India for the registration. Is it good to proceed basis the MOU and on the comfort of the seller being a HNI and having other properties. Any suggestions here?
Without any prior registered agreement with seller , you should not pay off his 15% home loan amount to SBI . You should get an agreement for sale registered having all the details of the transaction in it.
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Adv. Mukesh Vasant Shinde
Thane | 400+ Answers
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Enter into an MOU, and he should first get certificate u/s 197 before u both entering into an Agreement for Sale
After acquiring certificate u/s 197 get the o/s cleared and then enter into an Registered Agreement
After acquiring certificate u/s 197 get the o/s cleared and then enter into an Registered Agreement
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Adv. Aniket Nerurkar
Mumbai | 25+ Answers
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as a suggestion we would recommend that you wait till he arrives as there is no consequence if he pays the 15% due to the bank now or later. the transaction without the banks Noc can be voided by the bank hence you would need the noc before paying consideration. moreover there is no need to part any payments before he arrives the seller as without him the bank will no issue noc. its always a better practice to have the original seller face to face.
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Adv. Clerence Pereira
Pune | 25+ Answers
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