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My home loan had been approved. But the seller has joint account with his wife. The cancelled cheque he provided had a name like

<his-first-name> and <wife's first name> <surname>

Thus the bank prepared disbursement cheque with the same name. Now the seller says that it will cause a problem for taxation and even though the account is joint account, the property was on his own name. So the disbursement cheque should bear his name only. Now I have some doubts:

  1. Can I prepare cheque with single persons name when the account is a joint account?

  2. What a bank ideally should have done? Prepared check according to the property agreement, that is single person name or according to cancelled cheque (names of both account holder)?

  3. Is it possible to get new cheque with single name when one cheque is already prepared?

  • Your question is unclear. #1 What is a "passed" home loan? (Fully paid off?)? #2 What does that have to do with the seller? #3 Who is disbursing the money to whom? #4 If the check is cancelled, the money is already in the receiver's bank account, so what's your problem? – RonJohn Jul 28 '18 at 7:16
  • I apply for the home loan. Bank scrutinize my credit background and then #1 approve home loan (sorry I should have used word "approve" instead of "pass") #2#3#4 Seller provides cancelled check to bank from which I am taking loan. Bank then prepares cheque with seller as a payee. Cancelled cheque is a proof that a person has an account with the bank (any bank, not necessarily the bank from which I am taking loan). – anir Jul 28 '18 at 7:47
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    Please specify the country. – mhoran_psprep Jul 28 '18 at 12:01
  • @mhoran_psprep Yeah I live in India. I thought I should specify country. But then forgot. Thanks to point out. – anir Jul 29 '18 at 8:29
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Can I prepare cheque with single persons name when the account is a joint account?

Yes. Happens all the time.

What a bank ideally should have done? Prepared check according to the property agreement, that is single person name or according to cancelled cheque (names of both account holder)?

The checking account says "and". What they did is perfectly legal.

Is it possible to get new cheque with single name when one cheque is already prepared?

I'm dubious that it's your responsibility to do anything, and very suspicious that the seller is trying to perpetrate fraud by hiding the sale from his wife.

  • Q2. I mean which name the cheque should bear as a payee? The name on which the property is owned or the names of account the cheque is payable? Q3. Also didnt get what you meant by "I'm dubious that it's your responsibility to do anything". I meant to ask if bank can shred first prepared cheque and prepare a new one? – anir Jul 28 '18 at 8:35
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    "..very suspicious that the seller is trying to perpetrate fraud by hiding the sale from his wife." This maybe incorrect. The House is in Individual's name. The CA may have advised that it would be better to get the cheque in his individual name and it makes it easy for filing tax returns and / or investing in Capital Account. There must have been an oversight from seller and hence he requested the cheque in the join account. – Dheer Jul 30 '18 at 3:42
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    @anir Bank has prepared the cheque based on the instructions provided. So it is completely legal and there is nothing wrong by the Bank here. Seller has specified the credit details and Bank have disbursed based on that. – Dheer Jul 30 '18 at 3:46

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