Wuok Toud 13 July 2023

Gpa registration for property

I am planning to buy a property which is registered in 2 people names brother and sister. Sister is married and is residing in europe from 3 years basically NRI. The brother is indian resident. The sister has given GPA to brother to sell the property from Indian embassy europe and is registered. I hve applied for loan and as per my safety i asked the banker to disburse the loan to the NRI account or get a NRO account and disburse her share to that account as it is taxed 20%. But the bank team is saying that they will take a mail confirmation from the NRI lady that she has no objection to disburse the loan to her personal Indian Bank account which is normal saving account. Should I go with this approach as this is GPA registration and also the tax reduces to normal 1%.

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Quick Summary

When purchasing a property registered under joint names, including an NRI sibling with a GPA, disbursement of loan funds requires careful consideration. While disbursing to an NRO account is an option, banks may request written confirmation from the NRI that they consent to funds being sent to their personal Indian savings account. If both parties agree to this method, ensure you obtain receipts from both the brother and sister and proceed with registering the sale deed.

2 Replies

Real Soul.... (LEGAL) 13 July 2023

Yes if bother the parties agree for that mode of payment then that is fine, you should take receipt of payment from both brother and sister and get the sale deed registered.