Need guidance urgently...
Hemant
(Querist) 20 September 2011
This query is : Resolved
Dear Sir/Madam,
We are two brothers married with no sister.I am the younger one. My father is planning to buy a new home so that our life among brother remains peaceful. At present, we all of us live in our existing house which is 160 sq yards. I am with my family on 1st floor and 1 hall room of ground floor and my brother lives on ground floor with 2 room set.
my father and brother are interested in already built home which is 95 sq. yards and cost is 65 lacs. My brother wants that he should take this home on his name. For that my father is ready to give 50 lacs of his hard earned money too.
Presently I am out of City and can not go home until 7th October. But they are planning to complete all formalities before 30th September. They have given me time to think about it. My father is assuming that each of us will be given 50:50 of his property. But I am in a fix that how it will be distributed as our existing home cost is around 95 lacs atleast.
My father says that If I stay in existing home then I will have to pay 1/3rd of existing home cost when they willbe no more.
if things go like this, then my entire life will be burried in home loan and my brother would be enjoying as he would be getting money from me for his part of existing home cost as the newly purchased home is of just 95 sq yards.
My queries are:
1. If I opt for existing home, then should I put a condition that 1/3rd part will be given on current market price of existing home. On the contrary, if I dont put this condition then who knows the price of our existing home once my parents will be no more. May be it can go around 1.5 crores too.
2. What could be the best deal so that so that we brothers have to bear equally??
Thank you very much for your cooperation
Regards,
Hemant
ajay sethi
(Expert) 20 September 2011
1) if your father is planning to buy another house admeasuring 95 square yards and he is contributing 50 lakhs then said property should be in his name only . if property is purchased in name of younger son god knows whether tomorrow he will care for his parents or not . the balance amount of 15 lakhs cna be contributed by both the sons equally .
2) as far as exsiting property is concerned let your father make a will that on his death property will devolve in name of both of his sons . similarly for new property father can bequeath to both his sons equally .
Raj Kumar Makkad
(Expert) 20 September 2011
The present market value of your existing house is Rs. 95 lac and proposed is having value of Rs. 65 lac. Thus total cost of both comes to Rs. 160 lac out of which you are entitled for Rs. 80 lac. Your father is contributing for purchasing of new house to the extent of Rs. 50 lac. Arrangement of Rs. 15 lac is to be made.
If you opt for first one, you should pay Rs. 22.5 lac to your brother out of which he may incur Rs. 15 lac on cost of new house and rest for be his compensation and the same arrangement may be reversed also in the same terms.
Shastri J.K.
(Expert) 20 September 2011
I agree with Experts.
Hemant
(Querist) 20 September 2011
Dear Rajkumar,
Thank you for your suggestion.
If I follow your suggestion then one more query arises that who should be the owner for New and existing house?
If I am not wrong, in case my brother takes the new home then the owner of New house will be my brother and my father should make a Will that in future I will be the sole owner of my existing house and my brother will have no right to claim anything from existing house.
Kindly Suggest.
Thanks once again
Regards,
Hemant
Raj Kumar Makkad
(Expert) 20 September 2011
Yes. Your father can even gift you at present also so that no future dispute may remain.
Guest
(Expert) 20 September 2011
Agree with experts
Hemant
(Querist) 20 September 2011
Dear Sir,
Thank you for your suggestion.
Just wanted to clarify if it would be justice for both of us that one is getting house of 95 sq yards in 7.5 lacs + receiving 22.5 lacs cash and other is paying 22.5 lacs cash for existing house of 160 sq. yards??
Kindly Suggest
Thanks once again
Regards,
Hemant
prabhakar singh
(Expert) 20 September 2011
agree with solution provided by Mr.Makkad
Hemant
(Querist) 21 September 2011
Thank you very much for all your suggestions.
Koumarish Bhattacharya
(Expert) 21 September 2011
I do not think your father would be able to buy property in the name of your brother as it would be a benami transaction under the provision of the Benami Transactions (Prohibitions) Act. If he buys the property in his own name, he must have to make a clear testament or he will have to make a settlement deed.
Koumarish Bhattacharya
(Expert) 21 September 2011
I do not think your father would be able to buy property in the name of your brother as it would be a benami transaction under the provision of the Benami Transactions (Prohibitions) Act. If he buys the property in his own name, he must have to make a clear testament or he will have to make a settlement deed.
