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Ramsey   26 November 2023

Home loan on shared ownership property my father and uncle

My father and uncle owns a 2 floor house in haryana. This house is registered under my father and uncle name under deed of relinquish enter.

Now I wanted to pay off my uncles share to own this house completely. My uncle is in agreement verbally. I m in requirement of the home loan but it's seems not to be approved since it's under my father and uncle name.

Please could you advise the process since I m the earning member not my father and Ill need loan to pay off my uncles share. 



Learning

 11 Replies

kavksatyanarayana (subregistrar/supdt.(retired))     26 November 2023

Under relinquishment obtained property?

Ramsey   26 November 2023

Yes, deed of relinquish enter under my father and uncles name. 

T. Kalaiselvan, Advocate (Advocate)     26 November 2023

If you want to avail loan on the basis of this property, you need to have clear and marketable title to the property.

Your father can transfer his share in the property by executing a registered settlement deed in your favor and similarly your uncle should also transfer his share in the property in your favor by executing a sale or gift deed by a registered document.

After that you can apply for loan giving this property as collateral security.

1 Like

Ramsey   27 November 2023

My uncle is not willing to surrender unless he is being paid for it, which is essentially right. What can be done to safeguard his interests?

There may also be issues related to what if he surrenders and then loan was never approved... 

Dr. J C Vashista (Advocate and Legal Consultant)     27 November 2023

I concur the opinion and advise of expert Mr. T Kalaiselvan.

In order to avail loan the property (offered for mortgage) has to be in your name, clear marketable title and free from encumbrance. 

In the instant case your father and uncle has a defective title, which will not be acceptable to any financial institution.

Consult a local prudent lawyer for proper analyses of facts and professional advise.

1 Like

Ramsey   27 November 2023

Dear Sir, I believe this may be only applicable for home loan against the property. In the scenario where I m buying this property as fresh without any collateral, shall I still be legally eligible to purchase and apply for home loan considering my father owns 50 percent of this property? 

T. Kalaiselvan, Advocate (Advocate)     27 November 2023

The property is on both the names, i.e., your father and your uncle.

You can obtain loan against the property only if you have a clear and marketable title on your name.

Your father's title will not automatically devolve on you.

He has to transfer his share either by a settlement deed or by a sale deed, similarly your uncle has to transfer his share in the property by a sale deed  or gift deed.

The bank will grant loan only for purchase of property hence both the owners have to transfer their respective share in the property to your name by a registered deed.

 

Ramsey   27 November 2023

But does this mean transfer the name before loan or this is a simultaneous process since no one will release the property to anyone without getting paid. 

If this is the case then please could you advise if I need to buy a different property not this one. Does the owner need to first transfer this to my name before the loan? 

P. Venu (Advocate)     28 November 2023

To my knowledge, the Bank can process the proposal on the basis of a validly executed agreement to sell.

1 Like

Ramsey   02 December 2023

If the property still remain in uncle and father's name,.

Can a partial loan be availed by my uncle for his share of property only? 

T. Kalaiselvan, Advocate (Advocate)     03 December 2023

If the property is jointly owned then one person alone cannot avail any loan especially if the property is not partitioned.


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