My lawyer wants me to share a copy of our sales deed to a potential buyer, who says it is needed to secure a home loan. The potential buyer has not yet responded to our sales price quote. Actually it is just my widowed mother who has to handle all this as I'm NRI. Our lawyers keeps sending potential buyers to come and take a look at our house, so we are not sure how much such will keep coming and requesting copy of sales deed for securing home loan. My question is: Is it okay to give even a copy of sales deed to potential buyer even without an agreement to sale. Do banks require sales deed as part of pre-approval for home loan? Wont' they give estimate figures for approximate income levels of potential buyers Should not the potential buyer first enter into an sale agreement and then use the time frame to get into a proper loan process. I understand that potential buyers do not want to commit to an advance deposit if they are not sure about getting a loan amount? But what about rights/protection for the seller? as we do not want our sales documents to be distributed to potential buyers without a sales agreement Thanks
1. It is a normal norm to give a photocopy of the agreement to the prospective buyers' agent for verification and for assessment by the buyers bank for loan purposes. HOWEVER, this should be given ONLY when the deal price is settled and a basic MOU is signed, for the purposes.
2. FURTHER IF you are apprehensive (rightly) about any future untoward events, THEN you can offer "visual inspection of the sale deed", till you conduct point no. 1 (above. Never ever give away any original document.
Dear client,
Copy is require to search clear title and non encumbrance, further the value of property ascertain by sale deed only. You can give it. Cross the every page by pen. You can also insist pre agreement to sell.
You can give a endorsed copy of just index that you are giving just for sale purpose. Bank doesn't need sale deed copy for pre-approval bank needs sale agreement between you and new buyer.
Based on the copy of index of sale deed the bank can check the title of the property.
You can give inspection of original documents of title
2) then agreement for sale can be entered into
3) then only give copy of sale deedto enable purchaser to apply for home loan
4) no need to distribute your sale deed copies to potential buyers
Bank get the property documents verified from their lawyer before sanctioning loan. There is nothing wrong before sale agreement to get the documents verified. However, they won't mind if you supply the copy of documents by striking of each page of the documents. Or cross each copy of document with endorsement "for verification of housing loan'".
1. Having a photocopy of title deed of a property does not give any benefit or rights to the holder of the said photocopy.
2. So even if your mother gives such photocopies to any number of prospective buyers , no harm is going to happen to her rights.
3.Do not make any advance for handling over the photocopy as that may be interpreted as sale agreement.
4. Only when a person confirms the purchase then only make a detailed sale agreement and then take money as earnest price of the property.
You can give cancelled copies of the sale deed to the prospective buyer as that is a norm to get the title check done before buying any property.
The buyer cannot do anything by just having the cancelled copies.
Get a trusted person to handle such activities. With copy although nothing could be done but would pave way to create similar documents.
Regards
G.Rajaganapathy
They give estimate as per the income and potential value or property. You can share copy with all the buyers. If you share also make a endorsement on the same that the said copy is provided to so and so person for said purpose only
1. no, do not give the copy without agreement to sale. Ask them to deposit some advance and if they come to know that the title of the property is defective and they will not get the loan on the same then you will refund the entire money.
2. yes they need to enter into and agreement having the aforementioned clause.
Ask your lawyer to keep ready such agreement and get the same signed from the interested buyer and then only give the property papers to the proposed buyer.
Regards
Until and unless the party appears to be genuine it is not advisable to give copies of the registered title document to anyone approaching you, in that case you may make a noting that this is a reference copy only and cannot be used for any other purpose.
Banks do not require any such deed because until there is a sale agreement, the banks will not be sure abut this transaction at all.
You are right that the prospective buyer should be advised to enter into a sale agreement first and then go for other formalities.
The buyers cannot demand the copies of the documents for getting an opinion about the sanction of bank loan, the banks will give opinion based on the information provided.
1. The copy of the Title Deed (sale deed) is the basic document which is required by the potential buyer for conducting search of the property in the Registrar's office.
2. Tyhe buyers generally submit the copy of the title deed alongwith the copies of the link deeds, to the Bank while applying for the loan and the Bank co9nducts such property search through its empanelled Advocates.
3. Agreement for sale will be executed and advance will be paid only after the property vsearch is over.
You can provide a xerox copy of the documents to him and thereby stamping on the documents, that the documents are only for the purpose of reference and not for any official use.
Dear client
There is no problem in sharing the copy of document to the buyer for purpose of home loan as bank have to follow the procedure to verify the legal status of the property and it's valuation and to find out that the property is free from any legal dispute.
If you are conscious about the misuse of copy of documents then mention on the copy as only For purpose of Home loan.
Dear client
There is no problem in sharing the copy of document to the buyer for purpose of home loan as bank have to follow the procedure to verify the legal status of the property and it's valuation and to find out that the property is free from any legal dispute.
If you are conscious about the misuse of copy of documents then mention on the copy as only For purpose of Home loan.
