Buying a resale flat with an existing home loan? Here’s how to avoid the pitfalls | Mint

Key Statutory Highlights

• The buyer's first step is to request the seller's latest loan account statement or foreclosure letter, as it shows the exact amount needed to close the existing debt.
• The full purchase price should never be paid directly to the seller with an informal agreement that the loan will be cleared afterwards; the payment terms must be formally documented.
• The seller's lender releases the original property documents along with a No-Dues Certificate only once the outstanding debt is settled.