Home loans in India are a very important financial option that provides people with the necessary funds to purchase a property or build a house. This is especially useful for those who cannot pay the lump sum and can pay the price of their property through monthly installments (EMI). However, sometimes people have to sell their property before the term of the mortgage loan ends. In such cases, certain legal and financial formalities must be completed so that the entire property sale transaction can be legally correct. Today we are going to know about him.
This rule must be taken into account.
The first question that arises is: can you sell a property on which there is a mortgage loan? The answer is yes, you can sell your property even if you have an outstanding mortgage loan. But for this it is necessary to follow certain conditions and procedures. First, you need to obtain permission from your lending institution, such as a bank or finance company, to sell the property. This permission comes in the form of a No Objection Certificate (NOC), which guarantees that the bank has no objections to selling your property.
The process becomes easier when there is the same bank.
If the person purchasing the property also wants to obtain a mortgage loan from the same bank, the process becomes much simpler. In this situation, the bank is not required to transfer the ownership documents to any other bank or financial institution. Instead, the bank can appraise the property and transfer the outstanding loan into the name of the new buyer. Therefore, transferring loan within the same bank makes the process easier and less time-consuming.
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Whereas, if the buyer wants to buy the property in cash, he will have to pay the outstanding loan amount directly to the bank. Ownership documents will not be released until the Bank receives payment of the full loan amount and any other outstanding charges. As soon as the dues are paid, the bank releases the original property documents and the property sale process can be completed.
Know this before you buy and sell
It is necessary to take certain measures so that the process of selling a property is simple and safe. First, have an accurate idea of ​​the amount outstanding on your loan and make sure you have sufficient funds to repay it. If you can’t pay the full loan amount, talk to the bank or explore other options, such as a personal loan. After this, it will be necessary to obtain the NOC from the bank, so that it can be demonstrated that the bank has no objection to selling the property.
