Sir, I am jayslakshmi from Chennai.. long back (25yrs before) my father purchased a land and registered on my mother name. Recently they built a house on that land through SBI Bank loan..Pointing my mom as a primary owner and first applicant and my brother as second applicant.. my parents have three kids my brother,sister and myself as the last one.after paying 2 or 3 installments my brother refused pay the rest of the installments...My parents are not earning so I decided to take up the loan and pay it completely.. Already I paid partial amount and 20lakhs more to clear the loan..In this case my parents wants to sell the property to me as I am going to repay the entire loan amount.Also I have decided to pay off the land cost to my parents. In this case I need your suggestions regarding the property. (1) This property is not ancestral one and it is purely purchased my father on his self earning. (2) Is it possible for a mother to sell the property to her one of the kid. (3) Whether other siblings have share on the property (4) As it is self earned property is my mother have rights to sell the property to any one of her kids without other kids permission (5) If she is selling like that will there be any legal issues in future for the kid who is buying the property.. (6) What if, If I settle the whole loan amount and clear off the loan then is it possible for my mom to give that property through Thane settlement deed.. (7) If I get the property through thane settlement whether other kids are eligible to ask for share of the property (8) If I get the property through dhane settlement is it possible for me to register it in my name including EB, property tax etc., Please guide me Thanks With regards Jayslakshmi
1) mother can execute sale deed in your mother name
2) sale deed should be duly stamped and registered
3) consent of other children is not necessary
4) your mother can execute gift deed also in your favour
5) gift deed should be duly stamped and registered
Sir, Thanks for the reply. How about going for dhane settlement? IS dhane settlement and Gift deed are same. If I get a property through gift deed whether other kids and their kids can claim on the property in future? Will it possible for me to register it on my name legally in future and proper registration in EB and property tax? will there be any issues in future. After paying all bank dues in future whether my mom can revoke the gift deed? In that case What should I do?
Your mother had no source of funds for purchase of property
2) property was bought by father in mother name
3) your siblings can take the plea that property was bought in mother name for benefits of joint family
4) hence sale deed is best option
5) your mother cannot revoke the gift deed
6) she will have file suit to set aside gift deed
7) once sale deed or gift deed is executed property would be transferred in your name
1. The property is purely self acquired property of your mother and she is absolute rights and authority to transfer the same to anybody she wish.
2. Yes it is outright possible to sell a mother to her kid.
3. No. Since the property is self acquired property your siblings do not have any share or right over said property during life time of the mother.
4. Yes. Absolutely your mother can sell the property to any body including a child without permission from other kids. In fact Your mother no need to seek any body's permission to sell the property to you.
5. No. If your mother sell the property to you no legal issue will be arise.
6. Payment of installments and clearing of loan won't crate any right or title to you over said property. In fact payment of loan installment or clearing loan is helpful to other kids of your mother and risky for you, because it will treated as paid by your mother. Settlement deed after clearing of the loan is nothing but inviting troubles. First of all you better to get executed sale deed in your favour by your mother by intimating the bank. The bank people will cooperate or entire a sale agreement with your mom for particular sale consideration then you can pay the bank loan through a cheque or bank transfer and transfer the property in your favour by your mother.
7. Thane settlement is not advisable in property matters.
8. Property can be transfer in your favour any time if your mother desiring so.
Hi
1) In general any property in the ownership or possession of a woman is her absolute property by virtue of Section 14 of Hindu succession Act.
2) As such your mother can execute a registered gift deed in your favour and you can mutate the property in municipal records, Electricity office and thereafter obtain property tax, electricity bills etc in your name. All the more if you clear of the existing loan and then ask your mother to execute a gift deed in your favour, this is the best option as you have a clear title (an act of clearing loan in the name of your mother gives you the natural right to your mother's love and affection).
3) If you do not intend to avail any bank loan on the said property (either by way of continuation of existing bank loan or any financial requirements in the next 2 years, then the execution of registered gift deed by your mother in your favour is the best option.
4) A Registered Gift deed once executed cannot be revoked/ cancelled by your mother without following the due process of law. In general, once the Registered Gift Deed is executed, the Donor or your siblings cannot have any claims whatsoever.
5) However since
i) there is an already existing bank loan and
ii) also if you intend to continue the existing bank loan or obtain a new loan on this property in the next two years and
iii) also given that your brother who opted to be the second applicant for the purpose of bank loan and then backed out from paying the installments can still make a claim at a later date, the following steps are advised:
a) Since the property is already mortgaged to the bank, your mother can transfer the property to your name either by sale/gift deed only after obtaining a No Objection certificate from the bank especially during the subsistence of the loan.
b) So you should first get the bank to permit you to be included as a second applicant for the loan in place of your brother which i am sure on the fact that you have repaid most of the loan, bank's will be more than willing to add you as a second applicant.
c) In the circumstances stated by you , A sale deed by your mother in your favour is preferred over the Gift deed (given that there are other siblings who are likely to challenge at a later date) as banks in general will prefer to extend loans readily to a sale deed.
d) It is a normal practice for banks to grant loans against Properties obtained through Gift deed only after a period of 6 -12 months as there is no sale consideration in a Gift deed.
e) You should also consider the fact that Banks in general will not extend home loans for properties obtained as a Gift(through Gift deed) and instead will grant loans in the form of "Loan against property" (It has shorter tenure of repayment, higher interest rate and no tax benefits like home loan).
Hope this information is useful.
1. Your mother being the absolute owner, can sell the property to anyone of her choice including you. Nobody can question this nor your siblings can claim a share in it as a right.
Your mother need not take the permission or consent or NOC from her other children to sell this property by a registered sale deed to one of her children.
2. If you anticipate trouble from your siblings in future claiming a share in the property that belonged to your mother, it is better to avoid setlement, instead she can execute a registered sale deed in yor favor which cannot be questioned or disputed by anyone for any reason.
3.The property transferred to your name by a valid and registered document shall be yor own and absolute property. You can transfer all the records to your name subsequently.
How about going for dhane settlement? IS dhane settlement and Gift deed are same.
Dhana settlement and gift deed are not one and the same.
There is a marked difference between a gift and a settlement. A gift is not made for any consideration, where as a settlement may be in consideration of marriage. Like-wise, a gift may be made to any person, where as a settlement is mostly made in the favor of dependents. Also, gift requires an acceptance, whereas a settlement does not. A gift is revocable or may be suspended as per Section 126 of the Transfer of Property Act on the happening of any specified event, which does not depend on the Will of the donor unlike that of a settlement, which is final and binding once it is executed by the Settler.
If I get a property through gift deed whether other kids and their kids can claim on the property in future?
The circumstances under which the gift deed was executed in your favor will substantially prove that this deed was not under any coercion/pressure or having done when the donor was not in a sound mental health, therefore the other siblings cannot make a claim in it and any such claim shall not be maintainable in law.
Will it possible for me to register it on my name legally in future and proper registration in EB and property tax? will there be any issues in future.
Yes you can transfer all the records to your name subsequently.
After paying all bank dues in future whether my mom can revoke the gift deed? In that case What should I do?
You have to enter into a sale agreement with your mother so that this can be prevented and the sale agreement can be enforced.