Shivaram (n/a) 08 March 2016

Partition deed

Dear Friends,

Required urgent help

A,B & C have got title of a property admeasuring 1200 sqft. from their father vide registered gift deed. A, B & C are now co-owners. They now intend to build three floor residential mansion in this site and hence approached the bank. Bank is fine giving loan provided A, B & C enter into a partition deed.

Question

1) A, B & C wants to now apply for a sanctioned plan in joint names and then enter into a partition deed for loan purpose. Is it fine to enter into a partition deed subsequent to receiving sanctioned plan? Whether the sanctioned plan received before partition in joint names lose its validity after partition?

2) A, B & C have decided to construct three floors post partition based on the sanctioned plan and to own the respective floors in their names (utility and common areas will be common ownership).

Eg:- A owns first floor, B owns 2nd floor and C owns 3rd floor. A & B renounce ownership in C; B & C renounce ownership in A and A & C renounce ownership in B

Should the above understanding be incorporated in the partition deed or the mere mention of UDS is enough? The UDS for 1200 sq.ft. comes to roughly 400 sq.ft. per owner.

Thanks for your help in advance.

Regards

Reply Follow

3 Replies

ROHIT SHARMA (Legal Advisor ) 08 March 2016

1. The co-owners should apply for the bank loan as together and not individually. The bank should have no problem since the title of the property is name of all the co-owners.

2. There is no need for partion deed now.

3. The construction plan is for constructing the building and it has nothing to do with partitioning.

4. The co-owners should not have the partitiong till the loan is paid back.

ROHIT SHARMA (Legal Advisor ) 08 March 2016

1. The co-owners should apply for the bank loan as together and not individually. The bank should have no problem since the title of the property is name of all the co-owners.

2. There is no need for partion deed now.

3. The construction plan is for constructing the building and it has nothing to do with partitioning.

4. The co-owners should not have the partitiong till the loan is paid back.

Shivaram (n/a) 08 March 2016

Sir, Thanks for your reply. In this case, the bank is insisting for a partition so that they can disburse three loans separately. They are saying that this arrangement will give a clear title to the existing co - owners by the respective owners renouncing the share of others. Further, looks like they want to strengthen their charge on the security. Will the partition arrangement bring any problems to the existing co-owners? Or is it a acceptable practice. Thanks in advance Rgds SV