You can sell the flat or house to a person following the normal procedure, however, in that case the purchaser would have to takeover the home loan from you and a fresh agreement would have to be signed with the bank. In any case, the seller would have to first close his existing home loan account and the buyer open a new one.
In case the buyer decides to go in for a home loan from another bank of financial institution in that case the fund transfer process will be applicable and a tripartite agreement needs to be signed between the bank, the seller and the buyer.
In the third case if the buyer does not wish to avail a loan the buyer can pay-off the bank and can sign the relevant sale agreement with you and deduct the amount paid to the bank from the sale price of the house or flat. The bank in this case will release all the documents that mark a lien on the property,
Documents have to be in order
Before buying the property all documents have to be in order. In the case of the seller, he has to keep the following documents ready:
1) Mother deed
2) Sanctioned plan,
3) NOC from the society
4) Encumberance certificate
5) Sale deed
6) Property tax receipts (in certain cities like Bangalore),
7) Electricity bills paid and various other documents pertaining to the loan that maybe applicable.