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Suraj K Nair   24 July 2015

Housing loan for father's property

I am staying in my father's property.  As my father is now no more, I wish to buy this property duly giving share to my sister.   When I approached SBI for housing for this purpose, they told that they are not funding for this type transaction.  I would like to know whether I can get housing loan for this purpose. If so, which bank is doing this.


 5 Replies

ADVOCATE DIMPLE JINDAL (Advocate)     24 July 2015

Your query is not quite clear. 

firstly, You say, you are residing in your father house and your father is no more.

It means, the house will automatically transferred to the legal heirs of your father. If your father is no more, then how can he sell the property. This property can be tranferred on the basis of "will" or upon the basis of legal heirs of your father. And as you are class 1 heir of your father, you became owner of the property automatically either fully or partially (depending upon other living legal heirs of your father)

secondly, bank does not give any loan on family transactions (means sale of property from father to son). They see this transaction as fake transaction for the purpose of taking loan only.

If, in deed you want loan only and not to purchase the property, then you can not do so easily.

For taking bank loan, they need a copy of sale deed, which you did not have. And upon the basis of inheritance succession of the property, no bank will give any loan.  

for better advise, go to local lawyer with all complete papers, by reading the papers, one can give better advise.  




Suraj K Nair   25 July 2015

Thank you very much for the replies.  The property still in my father's name only.  We are planning partition of the property.  So I want to taker over this duly giving shares to my sister.  For giving the share amount I would like to avail the housing loan, since this is a housing property. 

k.chandrasekharan (advocate)     26 July 2015

It appears that your deceased father owned a property to which you and your lone sister are the successors. (you have not mentioned anything about your mother. If she is surviving then she too will have equal share).

It also appears that you want to be the sole owner of the property by getting transferred the share of your sister to you. There can be a 'release deed' relinquishing her rights in the property in your favour or a 'family settlement deed' having the same effect, depending upon the state in which the property is situated.

If you want to pay money to your sister, as per your mutual agreement, for execution of any of the said two deeds, then it will be 'sale' / 'conveyance' attracting stamp duty on the amount paid or guidance value of your sister's share in the property, whichever is higher.

Your issue appears to be that money is involved, hence a sale deed is to be executed. But you don't have the money on hand and need bank finance.

Solution: Get an agreement of sale executed by your sister, agreeing to transfer her share in the property for the specified 'consideration' (amount). Then you approach the bank for finance. Then it will be a simple loan transaction for the purpose of purchase of a property.

Note: You have used the word 'property' in your query, which is a wide-ranging word. Instead, the simple word 'house'/'flat' should have been used, for providing clarity, which point, is deduced by me from the use of another expression, 'staying in', in your query.

Suraj K Nair   27 July 2015

Thank you very much for your kind guidance.

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