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priya (na)     13 November 2014

Property joint registration with a friend

I had booked a flat near electronic city.I paid 10 lakh to builder till date .Due to job loss I am unable to pay rest of the amount of 15L. One of my family friend trying to help me.He will take homeloan of 15L but every month emi I will pay by online transfer to his loan account. To avail homeloan I need to transfer sale agreement in his name and builder is also agreed to do  so. My question is what legal agreement I should do with my friend about this to avoid furture litigation if he creates any ?  Is there any alternative solution without joint registration  legally ? If i do joint regd with him and what if he denied to quit from 50% ownership after few years ?  Kindly suggest me .He is earning enough to pay emi himself .I dont wish that after property regd happened in his name he may claim as 50% owner of flat while i will pay emi of loan.

What is the best solution here ?



Learning

 7 Replies

Advocate Kappil Cchandna (Expert Bail & Criminal Defence Lawyer at Delhi Supreme Court of India)     13 November 2014

Dear, Put down the terms clearly on the stamp paper, it will be a valid proof in future. Kapil chandna adv, 9899011450

Jayashree Hariharan (Advocate)     13 November 2014

Hi Pooja,

Do you still need the flat? if so you have to make joint sale agreement so that you will be joint holders of property. 

if it is a joint agreement for sale including your name and your friend's name then you will be joint owners. in that case he will surely have half rights over the property, even the home loan will be in his name. the fact that you are transferring the amount in his name for the purpose of emi will not be shown anywhere. it will be known only to you and him, so no use.

there is no escaping the fact that he will automatically be a joint owner of the property, there is no need for him to ask for 50%.

OR take loan from him and repay to him. so that you can retain the flat for yourself as the sole owner. this is as far as my knowledge goes.

 

 

 

priya (na)     13 November 2014

Thanks you for valuable suggestions.

Yes i have to buy that flat. If i quit now i will be loosing money because builder will not refund full.

I thought in stead of fighting with builder better i should take loan help. My friend will be joint owner in the property paper for loan processing . As Mr. Kapil suggested i will put down all terms in stamp paper for future proof.

I like to know what is the legal way to remove him from 50% ownership after few years ?  What i need to do for it ?  Is it needed to do re regd of property ?

Dalip Singh (Advocate)     13 November 2014

Hi Priya

There are certain facts which are not clear from your query.  First, whether you are married or single.

Secondly, when you can pay the emi to your friend why do'nt you give the emi directly to the bank and take loan in your own name.

However, let me tell you that -

1) transferring the sale agreement in the name of your friend means transfer of Rs.10.00 lacs already paid, in the name of your friend;

2) no agreement will solve the purpose rather you would lose Rs.10.00 lac and flat;

3) joint registration of agreement means that you are owner of the flat jointly with your friend with equal share i.e. 50% each;

4) by paying emi to your friend is an arrangement between you and your friend and it has nothing to do with the housing loan.  The help of your friend means that he would become the joint owner of the flat without loss of single penny;

My opinion is to find out some other options:

1) take loan in the name of your spouse if married, your mother, father and brother or nears and dears in the family with an understanding that after repayment of the loan he will relinquish/transfer his share in your name.

2) Alternatively, make the payment of Rs.2.50 lac to your friend and let him take the loan of Rs.12.50 lacs and let him make the payment of his loan amount.    In this way you would become the joint owner.    Save your EMI.  You can purchase your share as and when you are in a position to do so.  Return the principal + intt. paid by your friend with any appreciation money depending upon your friendship.  In this way, your friendship would be judged.

Advocate Ravinder (Advocate/Attorney)     13 November 2014

I Agree with Dalip Singh.

priya (na)     14 November 2014

Thanks to everyone and Mr. Dalip to explain me in details. I am single and only child. I lost my job and cannot think of taking of new job atleast 6 months minimum. So cannot avail loan. Builder is pressurizing for property regd.So i thought of taking help of my family friend.

I will contact advocate Mr. Gangadhar for agreement.

T. Kalaiselvan, Advocate (Advocate)     16 November 2014

Do not fall prey on the false assurances of any one who solicits business in the guise of advocate.  Use your own prudence.  Some experts have advised you properly as what is to be done on this.  Once you transfer the sale agreement on your friends name, you lose your title, decide.  It is better you take loan from your friend on interest and repay it on loan terms while retaining the property on  your name itself. any agreement mentioning transfer of title of property to your friend for the purpose of loan or financial help will be detrimental, think of pros and cons and then decide next course of action. Take the help of a lawyer in the local, consult, discuss and decide.


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