SBI Home Loan asking for Sale Deed before it releases the money – What to do ?

POSTED BY sidfever ON October 12, 2013 7:18 am COMMENTS (3)

Hi All,

I have recently purchased an under-construction flat in Hyderabad. The flat is 50% complete as per the agreement.

The sale agreement value is 27 lakhs. There is no separate construction agreement.

My housing loan is approved by SBI. SBI doesn’t have tie-up with the builder. So before releasing the construction-linked amounts, it is asking me for the sale deed. However it is saying that the whole sale agreement can\’t be registered as the flat is under-construction and the sale agreement must be bifurcated into two: sale agreement and construction agreement in the ratio of 60:40. So the sale agreement should be 16 lakhs and construction agreement is 11 lakhs.

The problem is we can’t go for registering the sale agreement at 16 lakhs. As per the Govt. recommended min. market price, the flat can be registered for 24 lakhs only.

I’m not sure what to do. Can someone in this forum give me some ideas.



3 replies on this article “SBI Home Loan asking for Sale Deed before it releases the money – What to do ?”

  1. ashalanshu says:

    Dear Sidfever, yes that’s possible, if your builder agrees.



  2. sidfever says:

    Thanks Ashal.
    SBI said because they don’t have a tie-up with the builder yet, they can’t sign a tri-partite agreement to disburse the loan. So they are asking for the sale deed and Encumbrance certificate before the amount is disbursed.

    I had a talk with the RACPC AGM and he agreed that we can register the flat for full sale agreement value. But the sale deed will be a conditional one in which the builder will mention “yet to receive the remaining amount from SBI”.

  3. ashalanshu says:

    Dear Sid, in case of an underconstruction property, SBi can not force you to avail sale deed. Please ask the RACPC people to give you the copy of circular if any. All over India, people are availing Max Gain for under construction property and from nowhere i heard such thing. You have to fight it out with SBI. It’s a wrong demand.



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