Ownership
Advocate@Law Field
(Querist) 21 April 2016
This query is : Resolved
Hi everyone,
I and my sister wanted to buy a property jointly but when I approached Banks they informed me that they dont give loans to two unmarried sisters as to avoid litigation in future. Therefore by we both mutually decided to apply for loan in my name and executed an agreement in my name only and purchased a Flat. However, My sister is paying her contribution towards EMI. Now, I want her to be joint owner of the flat alongwith me so she can also get tax benefits as well as other advantages of being joint co-owner. My query is_
1. which document may I execute with my sister and get it registered?
2.As the property is mortgaged with bank is it legal to execute any such document?
3. If so,will be she entitled to get tax benefits as I am getting from same property?
4. Add your suggestions if any.
Thank you in advance.
Devajyoti Barman
(Expert) 21 April 2016
1. You have to gift your half share in her favour to make her co-owner if the flat.
2.Yes, with the permission of the bank.
3.No unless she makes contribution in EM.
4. Meet a tax consultant.
Advocate@Law Field
(Querist) 21 April 2016
Thank you sir.But..
I want to know the legal aspect that when the property is already mortgaged will it be legal to transfer 50% right, title, and interest to some other person (Even that person is paying some portion of EMI and even Bank permits to do so)?
What is the way to safeguard interest of EMI contributor?
Kumar Doab
(Expert) 21 April 2016
If the lender has no objection then what complications do you see!
Rajendra K Goyal
(Expert) 22 April 2016
You should have contacted other Bank for loan in joint name.
The loan and flat is in single name, it is evident you are paying the loan.
The Bank would not agree to gift / transfer half share in the name of your sister till full loan is repaid. Even if it agree, till the loan remains in the single name, your sister may not get tax benefits.
Discuss with local tax consultant.
Kumar Doab
(Expert) 22 April 2016
There is no home loan on your name.
So how can you have relief from tax!
Still discuss with your tax consultant.
