How to Resell Your Property before You Have Paid Off the Entire Associated Loan?

Dev Singhraha

Relocation Expert

If you are planning to sell your property but it has an outstanding loan to repay, what can you do?

There are certain documents that you need to produce:

Sale deed
Mother deed
Home loan documents
Society NOC
Property tax receipts
Housing society share certificate

Here are other ways with which you can sell the property which has an outstanding loan

Buyer can take the loan from the seller’s home loan lender:
If the buyer takes the loan from the same home loan lender as the seller, then the buyer, seller and the lender can enter into a tripartite agreement. The lender will first consider the loan eligibility of the buyer. If approved, then the amount required to settle the loan is taken care and the left over amount if forwarded to the seller.

Buyer takes the loan from a different lender:
If the buyer already has a pre approved loan from another lender, then the seller needs to raise the request for the outstanding loan to the bank and ask for the certificate along with the property documents kept with the bank. If the loan is approved, then the buyer’s bank can issue outstanding loan amount for the seller’s bank. Once the loan amount is settled the seller’s bank hands over the property documents to the buyer’s bank.

Buyer is paying from his own savings:
The seller can ask its lender for the outstanding loan amount certificate. The buyer can pay off the loan to the seller’s bank and afterwards the documents are handed over to the buyer. The outstanding money is transferred to the seller by the lender.

Things buyers should look into before buying the property with the outstanding loan:

Go through all the terms and conditions of which the seller has the loan approved if you are choosing the same home loan lender.

The home loan rates for the new loans are usually lower.

Check if the loan was a part of any scheme and if so then make sure the advantages can also be passed onto you.

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