chinnu pintoo (e) 18 November 2013

Home loan rules for property sale between blood relation?

Home Loan rules for property sale between blood relation?

I want to sale my current flat to my younger brother as i wish to buy new one near by my office.

I am having Home loan on current flat and want to apply for fresh loan to purchase new flat. My Younger brother has good income through salary and eligible to purchase my flat by taking home loan against my property.

We had approached one bank for My brothers loan and received sanction as well. Problem occures when bank rejected his application stating transaction between Blood relation is not acceptable.

Request if any one has experienced similar case and advise if any bank accept such transaction and disburse amount to my current bank to clear my outstanding.

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9 Replies

BAALASUBRAMANNYAMM (Advocate) 18 November 2013

The bank is not concerned about the blood relation, while giving bank loans. They should observe only, whether the applicant is eligible for loan or not and whether he is having payment capacity or not. The bank is not bothering about the rest of things. They want to secure their loan amount.

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 ) 18 November 2013

lenders will not fund under construction property unless the developer is pre-approved with them. A lot of lenders can have issues if the property you are buying is more than 15-20 years old.

johnsmitchals (employee) 14 March 2014

It depends on your state laws. Generally, father or mother to Son or daughter is viewed as transaction among blood relations. Bother to brother is exempted. So you can confirm from Housing finance companies and carry out the transaction.

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