Sbi housing loan: patta not enough?
R Krishnan
(Querist) 10 September 2017
This query is : Resolved
Father's property in Kerala, with sale deed, title deed and tax paid for several decades. Father left a registered Will when died for wife and children. The Will, along with death certificate, affidavits etc were given to the village office and property register updated to individual names. For the last 12 years individual tax receipts available.
Now, one of the daughter's husband wants to build a house, availing SBI Housing loan in favourable terms as he is a SBI manager. However SBI and its Lawyer insists that, while the ownership of the property to the daughter is not in doubt (all documentation clear and no disputes), some sort of a "registered document" is necessary. Apparently "registration" (in the form of partition deed or so) is said to be costing several lakhs. Another alternative proposed was daughter making a gift deed to her husband. This again will cost some money and effort.
It is not understood why this rigmarole (creating new registered documents on matters that is already documented) is really required.
Couldn't the Lawyer (or a Notary) take cognizance of the existing documentation (assuming getting patta may not be an issue) and issue a clearance certificate? What would be the simplest way to proceed and make people understand?
Rajendra K Goyal
(Expert) 10 September 2017
The Husband is Manager in SBI, it seems he want to avail loan under Individual Staff Housing Loan with concessionary rate of interest to staff.
The Husband is not having clear title of the property and also acceptable title deeds for equitable mortgage, as suggested, gift deed is better option.
R Krishnan
(Querist) 10 September 2017
Thank you for the reply, that seems to be the current thinking. Couple of things though:
1. for the equitable mortgage, just found a reference to "Official Assignee Of Madras vs Basudevadoss Badrinarayan Doss on 26 November, 1924" that says deposit of patta could serve to create the equitable mortgage upon. Therefore would patta not satisfy the legal requirement?
2. As for the husband having the title, is that really necessary?
3. ..and if so, could that be solved by wife becoming a co-borrower?
(there might be a tax advantage in having the mortgage just in Husband's name as wife has no income to avail tax advantage, but that is a different matter)
Request help to remove this confusion.
P. Venu 
(Expert) 11 September 2017
Your brother-in-law, being an officer in the Bank, would better placed as to the norms laid down by the Bank. Is it the case that the employee, and not his wife, should have the title to the land.
If not, there appears to be no problem. If the panel lawyer is wrong in his advice, this could be got corrected by a more informed legal opinion as well the higher authorities of the Bank.
You are also wrongly informed that execution of settlement deed pr partition deed involves huge expenditure. In Kerala, such deed require only nominal stamp duty.
