Paritosh Jani (Self) 21 October 2010

Society Transfer fee

Hi,

My father, a senior citizen owns the house in a society. I have applied a housing loan for the house renovation & extension. Bank says the house has to be in my name for loan eligibility as father has no income. My only sister doesn't have any issue in this entire process. My question is

Which one of the following would be more suitable

1) Shall the house be purchased from my father?

2) Shall my father gift me the proprety?

If I purchase, do I need to pay the transfer fee to the society and if it is gifted what are the tax implications?

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5 Replies

DEFENSE ADVOCATE.-firmaction@g (POWER OF DEFENSE IS IMMENSE ) 21 October 2010

The best way is your father should put you as nominee and apply jointly with father for loan.

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Paritosh Jani (Self) 21 October 2010

The society has no issue in putting up the nominee in share certifcate however bank wants to backed it with legal front (insisting on having my name is legal documents). However they have a suggestion of taking 50% undivided land rights with terrace rights but legal advisor gave me suggestion to buy the property so avoid any future implications.

prakash korekar (advocate & notary) 21 October 2010

mr. jani

this reply may not be humane but is fact....

if your father is senior citizen, certain banks or nbfc's will not fund on to such property out of his old age. moreover you have a sister as mentioned. so do as mr. shashikumar has said if the bank agrees otherwise ask your father to gift the said property in your name only.

why gift & not sale : in gift you don't have to pay any consideration to your father only stamp duty & registration fee to government will have to be paid (off cource lawyer's fee), whereas in sale deed you will have to pay consideration to your father & he will have to buy another property with that money or pay capital gain to income tax department.

please do not part with the property or its title as you have been suggested by bank.

1 Like

Paritosh Jani (Self) 22 October 2010

Prakashji,

Thanks for your inputs. I have 2 questions

1. If I am gifted property, shall I be eligible to pay transfer fee to the society ?

2. Is there any way my father transfers the property to me on a stamp paper (which society, corporation, electricity board approves).. is it recommended and valid?

SACHIN AGARWAL (ADVOCATE) 22 October 2010

Dear Jani,

Your problem is to get the Bank Loan for rennovation only. In this matter, it is true that the Banks do not provide loans to the aged persons having no source of income. You can apply for loan jointly with your father and in that case the house would be mortgaged by your father and the loan shall be repaid by you. You can submit your balance sheet / income tax returns. In case of any demand by the Bank, you can obtain and submit an affidavit of your sister having no objection.