Kannan (SLF) 12 April 2010

Dissolution of Marriage and Transfer of Property

Hi friends,

My wife and I are Indian citizens living in the USA. We will part ways by mutually agreed divorce (dissolution) of marriage in a few months from now. We are delaying filing the papers in court due to some personal reasons.

We jointly own a residential property at Bangalore and it currently has a mortgage on it. I will get this property along with the mortgage liability on it. I plan to refinance this loan to bring down the EMI by increasing the tenure.

1. If wife is willing to sign as co-applicant all papers required to refinance this mortgage now, is it better to apply as co-applicants now or is it better to get the loan after the property rights are transferred to me?

2. Which of the following is (are) the best option(s) to transfer the property rights to me:

a. Release Deed while still legally married (nil registration charges for relatives)?

b. Power of attorney while still legally married to sell the property any time?

c. Any of the above documents after formal dissolution of marriage?

d. Marriage dissolution agreement showing the property being given to me (will be doing this in any case)?

e. Any other options?

3. Additionally, can all of the documents be done in US and attested by the Indian Embassy/Consulate instead of wife being in India personally for this (she will not be able to do this in the near future)?

I would greatly appreciate answers and any additional insights from all legal experts, especially those with knowledge of Karnataka laws/rules.

Thank you very much in advance!

Kannan

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4 Replies

bhagwat patil (Property due diligence 9422773303) 12 April 2010

Beterway register a sale deed either before or after separation, all you will need banks approval or noc.Both of you can appoint POA in India for the purpose of exucation of sale deed.Same martgage will be continued.

Manish Singh (Advocate) 12 April 2010

its always advisable to refinance the said property once the property gets transferred to your sole name.

ask her for the release/relinquish deed of her rights in the property during the marriage validity.

appoint any PoA in India for the transactions.

Kannan (SLF) 13 April 2010

Thank you Mr. Patil and Mr. Singh for your valuable suggestions.

I will try and get the release deed registered during the marriage validity and before availing the new loan. Since she cannot visit India soon due to work commitments I was wondering if the release deed and POA can be geotten attested by the embassy here and then the release deed registered in India through the POA. Usually property related documents can be handled this way through the embassy, but I am not sure about the release deed in particular. Any insight into this?

Also, is there a standard format for the release deed or do we have to get it done by a lawyer in India?

Thank you once again for your suggestions!

Manish Singh (Advocate) 13 April 2010

Dear Mr. Kannan,

you can execute the relinquishment deed outside India and can get it attested by the Indian embassy therefrom. But make it sure to get the same registered within the period of four months from the date of its execution. It can also be registered after 4 months but it is advisable to have it registered within four months.