It’s
been a big worry to the buyers and to the seller when then want to purchase or
sell the property which is under a loan. It is a very simple process which
gives you the benefit of selling the property without closing the home loan
which is there on the property.
Banks
have designed a product called “Vendor Liability” which gives you this benefit
of availing the Home loan availing home loan on a property which has a loan
already in the name of the vendor or seller. In the process of this loan a
customer will go for a home loan as usual like in a normal home loan case. But
the documents submitted to the process vary a bit to this product. Along with
the regular income documents the vendor need to provide his Loan Account
statement, Outstanding Letter and List of documents submitted to the bank at
the time of availing the loan i.e list of property documents. These documents
are to be submitted to the bank at the initial stage of the home loan
processing only.
The
process begins with the verification of Applicants and Co-applicants Residence,
Office, Pay slips and Bank Statements. The property documents are scrutinized
by a panel advocate and the property is evaluated by a technical valuer who
will certify the property cost by taking the market value into consideration.
Post successful verification of all the documents and Property the disbursement
process is initiated by taking customers signatures on the home loan
agreements. Customers will be given sanction letter from the bank which gives
all the details of loan amount sanctioned, interest rate, tenure, repayment
conditions and EMI details. Customer need to make all the margin payments to
the vendor before initiating the disbursement process through bank and the same
proofs have to be submitted in original to the bank failing which the process
will not be initiated.
The
disbursement will be done up to 80% of the property cost or Agreement value or
Documented Value or the sanctioned loan whichever is less. Bank will disburse
the outstanding loan amount which is there on the property on the vendor’s name
directly in the name of the bank which has funded the loan to the vendor. The
vendor need to register the property on the vendee name after closing the loan
amount and post receiving the original documents from the bank and submit the
registered documents in the bank which funded loan to the vendee. Post
submission of the registered documents with the bank remaining sale
consideration or the pending loan amount is released. It has been a best
product to the Vendor’s with a liability to sell the property without any
hassles. As it comes under Home Loan only all the Tax Exemptions under section
80© of income tax act are applicable on the Principal and Emi components paid
to the bank.
