My bank insists on registration of the sale agreement before making disbursement. However, the house seller refuses to sign the agreement till he receives the money for the house. What should I do?

You can show the seller the sanction letter from the bank and pay your part of the property cost to him immediately. Once this is done, enter into a partly paid agreement with the seller of the flat or house. This agreement mentions the cost of the house and the amount paid to the seller along with the balance amount to be paid.

The agreement sets a time limit for the balance payment (usually 15 to 30 days) to be made and contains a clause that the agreement would be null and void in case of a failure of payment within the stipulated time. This agreement is registered and the disbursement is taken from the Bank directly in the name of the seller after that.

However, some house sellers may refuse to enter into such a partly-paid agreement. In such cases, the bank may agree to send its representative with a pay order for the loan amount to the registrar's office so that the registration and handing over of the payment can be done simultaneously.

However, this is a rather clumsy arrangement. Builders normally have no problems with entering into and registering a partly-paid agreement. This is one more argument for buying your house from a reputed builder. Click here to read more articles on home loans