Santosh (Program Manager) 23 January 2014

Conversion of joint owners(cousins) to single owner

Hi, Myself and my cousin( my mother brother's son) bought a site 30*40 in 2004, then built jointly Ground floor - basement, independent units on 1st floor and second floor. I am staying in 1st floor and he stays in second floor. We built this with a loan which was again jointly taken in Corp Bank. Now my cousin wants to get disjointed, and I want to become the single owner. However, I will be paying the required share of the property as per today's market value which would be 60 lacs each. For this I need a loan as well. Can you please help me how to go about such a situation and will any bank will give the loan for such a situation

Should I be first changing the deed to single owner for procuring loans? Can we avail tax benefits by any form of deed which you know will really help. How much would be the stamp dury and other charges in such cases

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3 Replies

adv. rajeev ( rajoo ) (practicing advocate) 23 January 2014

Your cousine has to execute the regd., gift deed in your favour.

Santosh (Program Manager) 23 January 2014

Thanx for the reply Rajeev, but will the Gift deed entitile for a home loan which I need to procure to pay his share as per current market value.

I understand the gift deed is more of a gift rather than the relinquishment. So I am confused on how will the bank give loan to me seeing what deed?

YPS Dehiya (Advocate) 23 January 2014

Dear Santosh,

You first get an agreement to purchase the other half portion of the property and alongwith other documents like IT Returns, Bank Statements, identity proof etc submit your requirement to any bank. Banks would willingly give you loan. All Banks extend loans to purchase house property, but for a loan of Rs.60 lacs you must have good income to show.