Notarised agreement is binding upon parties
2) you can give personal loan to buyer to buy the property
Personal Loan Agreement between Seller & Buyer of Property.
I had signed a Sale Deed in favor of a Buyer on 04/08/22. The Buyer had given me a 08/08/22 dated down payment cheque, and the remaining amount was supposed to given by his Home Loan Bank. I had interacted with his Home Loan Bank earlier and received confirmation of his loan sanction with scans of the Sanctioned cheque in my name. The Sale Deed has all the details of his down payment cheque and the home loan cheque. The Buyer is now informing me that due to unforeseen circumstances, he is falling Rs. 2 lakhs short of honoring the down payment cheque. Also without him making the down payment and showing receipt of the same, bank won’t disburse the Home loan. Hence the Buyer is requesting me to lend him a Personal Loan of Rs. 2 lakhs. He is willing to enter in to a Loan Agreement of 90 days, give me PDCs of monthly repayment and agree to any terms and conditions in the agreement. I am thinking of asking him for Loan Request Letter, clearly stating all that has transpired till now as a reason for him seeking the Loan, and then get in to a Personal Loan Agreement with him. 1. Can I get a Personal Loan Agreement registered, or is a notarized version with 2 witnesses legally binding? 2. Would there be any legal complications to me as the Seller giving a Personal loan to the Buyer for the reasons mentioned above?
Asked 2 years ago in Civil Law
First answer received in 10 minutes.
Lawyers are available now to answer your questions.
5 Answers
A loan agreement can be registered under Section 18 (f) of Registration Act, though such registration is not compulsory. As precaution you can get the loan agreement registered. This cannot be mixed up with registration of property as bank will not proceed the loan. You can seek execution of promissory note by him. Let him furnish two sureties against repayment and such sureties should also be shown in loan agreement with their consent.
1. There is no necessity to get the personal loan agreement executed by a registered document, even unregistered instrument is legally valid and enforceable in court of law.
2. You can decide about granting loan based on the circumstances, if you find the genuineness in it you may proceed.
It is mandatory for register such agreement.
Yes it can be a legal complication
1. Legally a Loan agreements registration is not mandatory , if it is given for the period of 4 months , hence you can notarized the same in the presence of two witnesses.
2. No legal complication .
