I am seller of a house and the buyer wants to take loan on the said house, I have few queries: 1) what is the % of loan given by the bank on the selling prices of the house. 2) On whose name is the cheque issued. 3) How and when is the remaining % paid by the buyer and at what stage of the agreement is the complete payment done.
- by Neville,
The financial institutions finance upto 85% of the property value as disclosed in sale agreement/sale deed. They also get the property valued by their panel valuers and the amount of loan depends on the valuation done by their valuer.
The financing institutions issue cheque in favour of the purchaser at the time of registration. If the consideration amount payable after deducting the advance amount paid is higher than the loan amount, the shortfall will be collected from the purchaser, and a consolidated cheque will be issued in the name of the seller.