What precautions should I take when buying property with unpaid loan?
I am buying a house without a loan from another person, but he already bought this property on loan, so all the documents are with the bank. He said that if I pay him, he will pay off his home loan, and once the documents are released, we can proceed with the transfer and other sale procedures. Now, I am going to buy this house for 27 lakhs, I have already paid him 10 lakhs, and his loan is still around 12 lakhs. If I don't pay, he won't be able to pay off his loan, and the documents won't be released. If I pay, I will not have any documents for the property, so I am at risk. Any suggestions would be greatly appreciated. They are a good family, and we know each other, but now I don't want to take any risks. I have already paid 10 lakhs, and he paid for another shop he bought. All of this I realized only now.
Before proceeding, ensure the person clears his home loan and releases the property documents from the bank. Draft a proper agreement for the sale, stating the payment terms and the conditions for document transfer. Avoid paying the full amount unless the documents are handed over securely. It’s safer to involve a lawyer in the process. For further legal assistance contact us on our helpline number.
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