Gopal Krishna 01 February 2018

Gift deed to family and non family member

Currently my mother in law holds a piece of land in Karnataka, on which we plan to construct an apartment. For me to apply for loan, the land needs to be either in my or my wife's name. We want the land to be both in my and my wife's name.(joint ownership)

To my understanding, Gift Deed to Family Member can be used to have the land in my wife's name, however Gift Deed to Non Family Member should apply if the land has to done to my name. Considering that we want the land to be jointly owned, does Gift deed to Family memeber apply for half the property ( fixed stam duty of Rs.1000 + Registration fee Rs500 + cess + surcharge ) and other half would be registered and stamped as gift to non family member, which would need me to pay 5% on the market value + 1% registeration fee + cess ?

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6 Replies

G.L.N. Prasad (Retired employee.) 01 February 2018

Please do not assume things on your own. Immediately contact a suitabel advocate. Daughter is a family member and a legal heir to mother. Let your mother in law register the property in her daughter's name. In turn, let your wife join you as co-obligant and mortgage this land as security towards housing loan and for giving first charge on property to Bank. The transactions are simple. Do not further waste time and contact Advocate. Also discuss with Bank's legal adviser before you proceed further, as this arrangement must be acceptable to him for giving legal opinion.

Kumar Doab (FIN) 01 February 2018

You can benefit from the above advice …..

The lender that has o advance IT’s good money is to be satisfied…

Check with all shortlisted lenders in person and try to speak to their empanelled Lawyer/Law Firm….

Gopal Krishna 01 February 2018

Hi G.L.N Prasad, thanks for your quick response, much appreciated. We have already contacted a lawyer to get legal opinion on this case. However, wanted to have a second opinion, hence posted in this forum.

Also we were looking into options of jointly owning the land, rather than my wife becoming the sole owner of entire land. Joint ownership of the land is my primary question, which I am looking forward to this forum for response. Perhaps the most legally economical way for joint ownership.

Would also like to note that, we have already consulted the bank authorities, and joint ownership or sole ownership by my wife doesn't concern them, we should be able to take housing loan either ways.

G.L.N. Prasad (Retired employee.) 01 February 2018

There are two questions involved in your issue.

1)Easy way of getting loan from Bank without legal issues.

2)Getting a gift deed.

The second option is first getting a gift deed for entire land by your wife, and then wife gifting 50% to you through separate deed.

Gopal Krishna 01 February 2018

Thanks G.L.N Prasad. Your response has answered my question.

I too thought we would need two steps (second option) for most economical way of legally having joint ownership. Shall wait for my lawyer's response, to see what other options could work out, and then decide if joint ownership or sole ownership by my wife would be better way to proceed, both legally and morally. :-) :-)

Kumar Doab (FIN) 02 February 2018

Another Perspective; IN future you may want to sell.

Then for any buyer ( your buyer)……..

'Buyer Beware' applies to property deals.

It shall be appropriate to get proper legal opinion from a very able local senior counsel of unshakable repute and integrity specializing in revenue/property/civil/DRT matters before signing or making payment.

This may cost some FEE but can defend long term interest and hard earned monies.

Therefore for long term goals preferably consult before you act on your own.