Sale deed requirement for gift deed to obtain a loan

b.s Harsha (Querist) 04 September 2020 This query is : Resolved
We have four houses in our 60x40 site. Except the outhouse ground floor every other house is a gift deed property.
Now, one of the owners of the house wanted to pledge his gift deed and obtain a bank guarantee. He claims that since all the houses are part of the gift deed property, in order to obtain a bank guarantee, he needs absolute sale deed of the entire site. Is the claim correct ?

What are the documents required in order to obtain a bank guarantee for the gift deed property ?

I wanted to know if I can file legal complaint against this person who has now obtained the absolute sale deed for the entire site.

Thanks and Regards

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Quick Summary

A property owner is seeking a bank guarantee using a gift deed but was told an absolute sale deed for the entire site is required. While a gift deed is a valid title document like a sale deed, banks may have specific procedural requirements. If the gift deed is for a specific portion, it should suffice for a loan on that share. If it's a joint gift deed, legal advice from the bank's lawyer is recommended regarding mortgaging a share. Obtaining a copy of a registered document by a property owner is generally not illegal.

Dr J C Vashista (Expert) 05 September 2020
Procedural requirement of the Bank qua sale deed of the donor (the person executed Gift Deed) for advancing loan is arbitrary and illegal, discuss with bank or change financier.
No dispute is involved for consideration and obligation of experts on this platform.

P. Venu (Expert) 05 September 2020
The facts, as posted, lack clarity. All that could be stated is that a gift deed is, in every respect, a conveyance deed and hence a document of title; it stands in the same footing as a sale deed. Any opinion to the contrary is a conceptual misunderstanding.

Rajendra K Goyal (Expert) 06 September 2020
Whether the person want to have Bank Guarantee, has separate gift deed in his favor?

If so, gift deed is proper title document to proceed, no need of consent from others.

If the gift deed is joint, he can get legal opinion from Bank lawyer, can execute registered mortgage of his share in favor of the Bank for obtaining Bank Guarantee. No mortgage is possible without the consent of real owner of property.

On what grounds you want to file complaint?

Taking copy of registered document from Registrar office by owner of a part of property is not illegal.

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