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Shivaram (n/a)     09 March 2016

Partition deed

Dear Friends,

Two brothers and a sister have been gifted a property vide gift deed by their father.  The property is self-acquired by their father.  All the three siblings are now co-owners.  They want to construct residential units (3 floors) to be owned individually (each floor for one sibling)

Bank is not comfortable to give loan on gift deed.  They insist on a partition deed to be drafted between three siblings. 

a) Is it mandatory that loan can be give only on basis of partition deed?

b) Why can't bank give loan on the basis of gift deed especially when the arrangement is crystal clear? (in the gift deed it is clearly mentioned that three siblings will own the property in equal proportion)

c) Is it ok to enter into a partition deed? whether legally there will be any issues for the three siblings?

Three siblings objective is to consturct three floors to be owned individually.

Regards

Ram

 



Learning

 6 Replies

HIRAL THAKKAR (ADVOCATE )     09 March 2016

Whether application for loan performed jontly or individually???

K. GOPALAKRISHNAN (ADVOCATE)     09 March 2016

a) Is it mandatory that loan can be give only on basis of partition deed?

No

b) Why can't bank give loan on the basis of gift deed especially when the arrangement is crystal clear? (in the gift deed it is clearly mentioned that three siblings will own the property in equal proportion)

Possible. Only if all of you should go for a bank loan

c) Is it ok to enter into a partition deed? whether legally there will be any issues for the three siblings?

Not necessary.  As three of you will be having equal share in the land.

d)  All of you should enter a Memorandum of Understanding for construction of the house, wherein you all can clearly state the unequivocal terms and conditions.

 

Shivaram (n/a)     10 March 2016

Dear Gopalkrishnan,

Thanks for your reply and guidance.  One small clarification, whether this Memorandum of Understanding (MOU) needs to be mandatorily registered in the sub-registrar's office to have legal validity?  Will the bank insist on registering the same?

Dear Hiral,

The proposal of the three siblings is to approach one common bank and make three individual applications for ascertaining loan for construction of the building.

 

Thanks for all your help in advance.

Regards

Shivaram V

 

D.SENTHILNATHAN   16 March 2016

What are the documents required to register a will for my legal hairs in the registrar office. It may be either self earned or my mother's settlement deed of my ground floor house. D.Senthilnathan Chennai

D.SENTHILNATHAN   16 March 2016

Dear sir,, 

Please letme know the necessasity of PATTA, CHITTA AND ADANGAL certificates issued by VAO of each village taluk office. What is the difference between them? Is it necessary to keep these documents along with original deed for partition of assets from a will executed?

D.Senthilnathan

Chennai


(Guest)

Simple logic , if there is default by any one person , how bank will recover the loan from speficif flat or portion. So if portion or flat is separate they can move ahead with that easily. 

If all three are taking loan together and entire liability is all of you and all of you are equally owner of property then i feel bank can consider , no individual case where recovery is difficult can be considered. 

They are only interested in getting money back nothing else and in case of default how they can recover remaining you and your sibling do whatever you like this is policy 


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