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Prachee Banthia (Associate)     08 September 2009

Property deed - Second name change


I am recently married. My husband bought a flat in Mumbai 2 years ago, which is in his name with his mother listed as second owner. The bank loan is also in their joint name, though payments are made by my husband only. 

We are considering transferring this to our joint names. I have the following questions:

1) If the loan is transferred to both our names, and both of us pay 6 EMIs each, can both claim tax benefits against principal and interest paid from our respective accounts?

2) If the loan is to be transferred to our joint names, does that mean the property also needs to be transferred to joint ownership between him and me, or can it continue to be in his and my mother-in-law's name?

3) If we wish to change the second name on the property agreement from my mother-in-law to me (first name will be my husband's in both cases), do we have to pay stamp duty all over again? What other charges would we incur?


 1 Replies

TVD Rajkumar (Advocate)     08 September 2009

point no. 2

It is possible ot transfer the loan from one person to another, provided you execute fresh set of documents & executing link letter with the bank stipulating to takeover the existing liabilities. This would not require change of ownership, but Bank would demand a better security or atleast make your MIL as guarantor to ensure continuity of the charge on the existing mortgage.

point no. 3

I believe, in general, you may have to pay one-half of the stamp charges originally incurred (ie. full charges for half share of property), still you may have to check up with Bombay stamp laws

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