gift deed for house underconstruction
akshata sali
(Querist) 16 August 2014
This query is : Resolved
Hi
.
I own a house in Nalasopara, Maharashtra and is still underconstruction jus want to knw if it is possible to make a gift deed in my father's name..
Thanks
Devajyoti Barman
(Expert) 16 August 2014
Owner of a property can always gift the same to anyone he choose irrespective of status of any ongoing construction.
ajay sethi
(Expert) 16 August 2014
yes gift deed can be made in favour of your father
Anirudh
(Expert) 16 August 2014
Dear Akshata Sali,
If you give the immovable property in GIFT, then you may have to pay huge amount as 'Stamp duty'. You can avoid it provided if you come up with complete details like - (i) whether the agreement with the builder provides for a clause where he is obliged to register the flat in your favour or in favour of any of your nominee(s).
In case there is such a clause, then you can request the builder to execute the sale deed straight away in the name of your father. (In this method, the property will get registered in your father's name. You will not be separately 'GIFTing' the property. There will not be any stamp duty payment because of the 'GIFT')
Raj Kumar Makkad
(Expert) 16 August 2014
Follow the wise advice of Anirudh otherwise go ahead as desired.
R.K Nanda
(Expert) 16 August 2014
no more to add.
Sri Vijayan.A
(Expert) 17 August 2014
Dear Akshata,
If the ownership is not yet transferred from the developer, you can ask him as advised by Sri.Anirudh.
In case, it is already transferred in your name, you can execute and register a settlement deed in favour of your father. This attracts least expenditure. Dont make gift deed, which involves huge expenditure.
akshata sali
(Querist) 17 August 2014
Thanks all...just a bit confused with anirudhs advice as the property is already registered in my name so is it now possible to make a sale deed.... And haven't received the possession yet so is it possible now or do v need to wait
Anirudh
(Expert) 18 August 2014
If it is still under construction, how can you have a sale deed registered in your name. Probably, what you are confusing is that you have got a membership in your name. You have entered into an agreement to purchase. THE SALE DEED WILL COME TO BE REGISTERED only when the property is ready not before that.
Therefore, I think either you have not given the correct fact situation, or you get confused with some other document.
Raj Kumar Makkad
(Expert) 18 August 2014
You are being suggested to explore the possibility of the change of the name during the period of the construction so that you may save at least one registration amount.
Sri Vijayan.A
(Expert) 18 August 2014
Dear Anirudh,
In Tamil Nadu, Sale of new house shall take place in the following manner:
1. Sale of Plot by the land owner to the buyer (through builder)
2.Agreement for Construction between buyer and builder.
In this circumstance, the buyer has to pay stamp duty and regn fee only for sale of vacant plot.
Otherwise, if the sale is done after completion of construction, the buyer has to pay for land + building.
So to reduce registration expenditure, this type of transaction is practiced.
In this circumstance, if the author of the present query has got ownership from the land owner and the construction is going on as per the agreement, now also he can transfer his ownership.
in that event, he can choose settlement deed as advised earlier.
Anirudh
(Expert) 18 August 2014
Dear Mr. Sri Vijayan,
Thanks for your info. I am quite aware of the practice in Tamilnadu. But, that practice will come into great problem in law knowing persons are in the helm of affairs.
Please appreciate that any immovable property in the form of land must have its boundaries. In the UDS which Tamilnadu practices does not answer the boundaries. Therefore, it is not a good practice.
It is not that first UDS can be sold and then the construction can be done. Assume for a while, if any crook who has UDS says that he does not want any construction on his portion what will happen?
Therefore, what in reality happens is that the land owner enters into an agreement with the builder to develop the land and to sell the flats constructed. Even though the possession of the land stands handed over to the builder to undertake the construction, yet the legal ownership of the land remains with the original land owner. As and when the builder finishes the construction of the flats on the plot of land, he typically has interest on the built up portion, while the land owner has interest/ownership on the land.
Therefore, the land owner executes the sale of UDS while the builder conveys the building. If flat is conveyed, then UDS along with it is understandable. But UDS simplicitor dehors the flat/building is quite unthinkable. BUT ALL SAID AND DONE PRACTICE GOES ON ... till someone comes and put a full stop.
Sri Vijayan.A
(Expert) 19 August 2014
Dear Mr.Anirudh,
What you are saying correct.
But this practice is in vogue from 1994.
And builders along with learned lawyers found and inserted many clauses to prevent such happenings.
Hence, so far without any problem the business is going mainly due to the saving what the people get
akshata sali
(Querist) 20 August 2014
Thanks both....i have paid stamp duty n registration amt also have cleared the housing loan aswell...i m not sure if the sale deed that you are talking about is nythin diff to this
T. Kalaiselvan, Advocate
(Expert) 21 August 2014
Thus, if the property has already been registered n your name, you can very well execute a gift deed in favor of any person of your choice.
