Is it correct to transfer the pending loan amount to owner’s account before registration of a property?
Question asked by Mr. Murali Ramaswamy from Tamil Nadu, India:
I am planning to buy an apartment from a person who has pending loan with ICICI bank. He is asking me to pay the outstanding amount to his personal account further to which he will close the loan with the bank. Afterwards he will make registration of the flat to me. Is this the correct way or kindly advice the procedure for this deal?
Thanks
Murali Ramaswamy
Vatsala Answers:
You can cover the transaction by an agreement before you pay the money. This is sometime done to avoid the foreclosure fees to the bank. If the amount is huge, you can register the agreement of sale so that the seller can sell the property only to you and no one else.
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