Srivathsan (owner) 08 August 2010

Joint purchase of a plot

Four friends want to join together in buying an empty plot and to construct a four flats for themselves.

What are the legal implications of such a case? Can loan be obtained in such a case? Do the companies allow loan on empty plot? Who should be the prime applicant in this case? Any one individual in isolation will not have the individual financial capacity to obtain the loan, so the collaterals from others is required.

How will this be impacted while obtaining subsequent loans for the construction? What are the legal and tax limitations?

Could anyone please clarify?

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N RAMESH. (Advocate Chennai. Formerly Civil Judge. Mobile.09444261613) 09 August 2010

//Four friends want to join together in buying an empty plot and to construct a four flats for themselves.

What are the legal implications of such a case?//

Four friends can jointly purchase a plot and construct flats over it. They are co-owners in respect of land (each entitled to equal extent 1/4th Undivided share in the land). All the four are land owners and also the beneficieries. They can enjoy the property as that of a purchaser of a flat.

//Can loan be obtained in such a case?//

Sure. BY giving the same property as security, loan can be obtained.

//Do the companies allow loan on empty plot?//

There are various kinds of loan depending on one's requirement.

//Who should be the prime applicant in this case? //

All the four can be joint/co-applicants.

As far other questions, please be specific.