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kunal (IT)     23 December 2013

Who will be the owner the of the house?

Plot is under my mother name, I am planning to take loan to construct a house in that plot. So who will become the owner of the house?  I will be the applicant and my mother will be the co-applicant. She will be contributing 20 % from her pocket and I am borrowing 80 % of total cost from bank as home loan. I will be repaying the whole loan through my salary.  So, who will be the owner of the house after construction?

Really appreciate your inputs.



Learning

 3 Replies

adv.raghavan (Advocate,9444674980)     25 December 2013

you both will be the joint owners. To some extent your mother will have edge over you in this property.

kunal (IT)     25 December 2013

Thanks for the reply. As per my internet knowledge my understanding is my mother will be solo owner of the house. Though I am an applicant and she is a co applicant for home loan. As a borrower I am only responsible for paying the loan and when I couldn't able to the EMIS, she has to pay the EMI's.   In my case we are also taking house plan permission under my mother name. 

So Experts, please advise me.

Here is an article that explains the difference between co=owner and co-applicant. According to this I only be co-borrower and not a co-owner

https://articles.economictimes.indiatimes.com/2006-08-11/news/27431325_1_joint-loan-loan-amount-borrower

Rutumbhara Nayak (lawyer)     16 January 2014

Dear Kunal Co-applicant is a person who applies along with the borrower for a loan. A coborrower along with the primary borrower accepts responsibilityfor repaying a debt. Since co-owners of a property should necessarily be co-applicants , one can include spouse as a co-applicant for aloan.Co-borrowers need not necessarily be co-owners but it is advisable to have a co-owner, as it takes care of any succession issues that could come up in case of the demise of one of the owners. You both will be the joint owners as your mother has contibuted 20% and you are borrowing 80% of the total cost from the bank as home loan. You are responsible for paying the loan and when you will not be in the position of paying for the loan, your mother has to pay the EMI's. Therefore,to some extent your mother will have edge over you in this property.Whoever is on the loan is responsible for the payment each month. If a payment is missed, both parties are penalized. However if the payments are on time each month, the credit reports of both borrowers will benefit. Rutumbhara www.lawkonect.com 09555 507 507


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