I have initiated purchase of house property for 300 Lakhs. Seller having outstanding loan of 240 lakhs taken from Aditya Birla Finance on his COMPANY name on name of property owner. Property title deed are kept as collateral security in the bank. He want we to clear the loan and pay remaining amount in cash . They he will register on my name.
It is safer deal. My friends says it is risky since loan is not taken on registration purpose but for personal reason.
Will it be OK if he get the full loan is cleared by him before the registration.
What do you mean by – ‘on his COMPANY name on name of property owner..’??
The buyer might be genuine, but I too feel its risky.
Generally, the day of payment (settlement) and registration happens on the same day.
If you know him very well then you can draft an Agreement of Sale accordingly and may go ahead with the deal. Do kindly consult a civil lawyer.