Sale of Minor property advise
M Swathi kumari
(Querist) 06 November 2017
This query is : Resolved
Sir,
My daughter aged 16 years 6 months, would like to sell residence flat.
Query: would like to understand what percentage of amount of sale property value to be made Fixed deposit?
Ms.Usha Kapoor
(Expert) 06 November 2017
Subject to court permission a minor can sell her self residence and with her guardian mother as
next fried can open a bank accountin savingxs or fixed deposits out of the sale proceeds.
Opening of Bank Accounts in the Names of Minors
Please refer to our circular DBOD.No.Leg.BC.158/C.90(H)-76 dated December 29, 1976 wherein banks were advised to allow minors’ accounts (fixed and savings deposit accounts) with mothers as guardians to be opened subject to safeguards in allowing operations in such accounts by ensuring that the minors’ accounts opened with guardian are not allowed to be overdrawn and that these always remain in credit. Also, please refer to our circular DBOD.No.Leg.BC.19/C.90(H)-89 dated September 8, 1989 extending the facility, of allowing opening of minors’ account with mothers as guardian, to Recurring Deposits.
2. Further, with a view to promote the objective of financial inclusion and also to bring uniformity among banks in opening and operating minors’ accounts, banks are advised as under:
a. A savings /fixed / recurring bank deposit account can be opened by a minor of any age through his/her natural or legally appointed guardian.
b. Minors above the age of 10 years may be allowed to open and operate savings bank accounts independently, if they so desire. Banks may, however, keeping in view their risk management systems, fix limits in terms of age and amount up to which minors may be allowed to operate the deposit accounts independently. They can also decide, in their own discretion, as to what minimum documents are required for opening of accounts by minors.
c. On attaining majority, the erstwhile minor should confirm the balance in his/her account and if the account is operated by the natural guardian / legal guardian, fresh operating instructions and specimen signature of erstwhile minor should be obtained and kept on record for all operational purposes.
3. Banks are free to offer additional banking facilities like internet banking, ATM/ debit card, cheque book facility etc., subject to the safeguards that minor accounts are not allowed to be overdrawn and that these always remain in credit.
Yours faithfully,
Rajendra K Goyal
(Expert) 06 November 2017
wait till she attains majority or obtain court orders and follow the conditions ordered by the court.
Advocate Bhartesh goyal
(Expert) 06 November 2017
Court permission is essential to sale minor's property . minor can't sale her/ his property themselve.
