POSTED BY January 17, 2013 9:29 am ONE COMMENT
ONI’m interested in buying a house and have zeroed in on a property. I need the agreement of sale before I apply for a bank loan.
Now, what happens if I sign the agreement and the bank loan runs into trouble? Will I be responsible to pay up for the house in taht case for the amount mentioned in the agreement?
What legal implications does the agreement have?
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Dear Anand, to get an agreement sell, you w’d have to pay an advance amount to the seller & if you are unable to complete the final transactions within the given time frame, this advance can be forfeited by the seller. For your safety, you may insert a clause in the agreement that in case, property documents are not complete to be eligible for a bank loan, seller w’d has to return your full advance amount with out deducting any penalty. In this case, onus lies on the seller to provide property related all documents & in case loan is denied due to property papers, you can claim back your advance money.
Thanks
Ashal