I am selling a property, and the buyer wants to take a loan from SBI. What are my expectations/roles in the process of selling my property?

Based on my experience, suggesting the below process

• Once the buyer finalizes the property, collect the token advance of around Rs. 5K–10K. (I usually collect token advance to filter the clients because few clients claim to be interested and demand the property documents but they don’t turn-up after collecting documents)
• Handover photocopy of the following property documents to buyer, whereas the buyer will submit these documents to bank for verification

1. Registered Sale Deed & Parent Deed
2. Encumbrance Certificate (EC)
3. eKhata
4. Property tax receipt
5. Cancelled cheque
6. Aadhaar & PAN

• Once the bank’s legal team approves the above-submitted documents, the bank will inform the buyer to proceed with Sale Agreement execution
• The buyer draft Sale Agreement with the help of his advocate and shares the draft with seller for review. The seller must review the Sale Agreement draft carefully, especially parties name, age, address, ID proof, property schedule, payment terms, taxes, cancellation & dispute clauses
• The seller and buyer sign the Sale Agreement, the buyer bears the cost for Sale agreement execution and stamp duty payment
• At the time of Sale Agreement signing, seller must collect the downpayment from buyer. Usually, the download payment is the difference between the consideration amount and the sanctioned loan amount

For example: If the sanctioned loan amount is 80% of the consideration, the downpayment must be 20% of the consideration. Refer to the figure below for better understanding,

1. Consideration is Rs. 1 Cr
2. The sanctioned loan amount is Rs. 80 lakhs
3. The downpayment is Rs. 20 lakhs

• The buyer submits the formal loan application and Sale Agreement to bank to process the loan application
• Bank takes around 15 working days to sanction the loan. Meanwhile, buyer draft the Sale Deed and share the draft with seller for review
• Once the bank loan is sanctioned, the bank will share the cheque or DD image with buyer & seller, confirming that loan amount is ready for disbursal
• Buyer will submit application for Sale Deed registration and book the slot for registration. Buyer bear the cost related to registration of sale deed including stamp duty, registration fee, advocate fee and any other miscellaneous expenses
• Seller, Buyer and two witnesses sign the Sale Deed and register in sub-registrar office
• Buyer and Bank register the MODT in sub-registrar office. Usually, the Sale Deed and MODT registration are back-to-back registrations at the same time.
• Immediately after the registration of Sale Deed and MODT, Buyer & Seller must visit the bank and deposit the following property documents

1. Sale Deed that you just registered with buyer
2. MODT
3. Parent Deed
4. And any other documents related to property like Agreement, Power of Attorney, Khata, receipt, etc..

• Upon the deposit of property documents with bank, the bank will handover the final settlement cheque to seller
• Deposit the cheque in your bank for remittance
• Once the complete payment is remitted to your bank account, handover the property possession to buyer

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