Transfer of Property
manjula
(Querist) 01 May 2011
This query is : Resolved
Hi all, I have a query related to transfer of property.
My freind has a house which is in her spouse and her father's name. Now, she wants the property to be transferred to her name or her spouse's name completely. What is the procedure and cost involved in this? Or can it be transferred to her name as a gift vide a gift deed? Are there any other consequences if the property is transferred in the form of a gift? Kindly suggest.
R.Ramachandran
(Expert) 01 May 2011
Since the property is in the name of her spouse and her father's name, it will be highly easy to get the property transferred in the name of her spouse. For this, her father has to give a Registered Relinquishment Deed relinquishing his rights in the property to his son-in-law. This does not involve much cost, rather no cost atall.
But if the house is to be transferred in the name of your friend, then as suggested by you it can be done by way of giving Gift. For this, both her husband and her father have to execute a Registered Gift Deed in her favour. This will involve payment of stamp duty. Stamp duty is normally payable on the value of the property that is being gifted away.
R.Ramachandran
(Expert) 01 May 2011
Alternatively, her father can gift his portion of the property to her. This will ensure that the property is in the name of both your friend and her husband.
If there are no other siblings of your friend, then in any case the share of her father will come to her ultimately. Therefore one has to really see whether at all such exercises are necessary.
In any case, one should also be very careful and analyse whether it would be a very good idea to transfer the property of the father in the name of her husband. My concern is that it will rob her of whatever security that she has in the form of property.
manjula
(Querist) 01 May 2011
Dear Mr. Ramachandran
Thank you very much for your immediate response.
The option of relinquishment deed is better compared to the other options.
Option of gift deed will involve stamp duty and also income tax becuase it is a long term asset. Moreover, my freind has other siblings too. Hence the other siblings would be entitled for a share legally.
Basically, the amount towards purchase of property was invested by her spouse but her father had included his name while
executing the sale deed. Hence, she does not have any objection of the property being held in her spouse's name.
Kindly guide me the procedure to execute the relinquishment deed.
Devajyoti Barman
(Expert) 01 May 2011
Both the dded of relinquishment and the gift would attract the stamp duty.
Since the stamp duty differs from state to state, you just check from your local registrar's office which one attract lesser stamp duty.
Engage a lawyer to draft the deed pf your choice.
Guest
(Expert) 01 May 2011
i think the relinquishment deed is the most easy.
