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Anant Subramaniyam (Service)     28 October 2018

Transfer of property in case of divorce

I and my wife have decided to end our marriage. After giving enough thoughts and efforts, we have come to the conclusion that the marriage will not work and that it would be better for both of us to walk our own paths. Two years back, we bought a flat on loan for which the down payment and the registration cost was born equally by both of us. However, the loan EMIs were paid by me. The flat ownership was registered in both our names.

Now, as the divorce settlement, she is not agreeing to sell off the flat as there hasn't been much appreciation on the property and that after paying off the loan amount there won't be much of amount left as proceeds for us to share.

She is also not willing to keep the flat for herself and pay me my share of investment.

So ultimately, I have decided to pay her share and retain the house and then maybe sell off the house at a later stage depending on my financial condition.

 

In such a situation,

  • What is the ideal procedure to transfer her shares to my name?
  • Can this be done as a gift deed considering that I'm paying her back the amount of her investment?
  • Is the transfer of shares in such a situation possible considering we have a pending loan on the property (The loan also is under both our names, she been the first applicant)
  • What will be the estimated cost of transfer of shares to my name?
  • Will there be any other complications at a later stage?
  • Any other information that I should be aware of in doing so?

I have been recommended that gift deed is the best option available to me.

Thank you.



Learning

 4 Replies

adv nishant (Advocate)     28 October 2018

1) ideal procedure can be many as there are a few important details which have been missed out and which are important to suggest an ideal way forward. 2) gift deed is not advisable for this transaction. 3) before moving any further in regard for change of ownership, noc from the bank shall be required. 4)Kindly share the state/city in which you have been residing and have the said flat in to kmow the correct stamp duty/goverment charges applicable on the transaction as the same varies from state to state. 5) if not done with due care and good understanding future problems may arise. Regards

Anant Subramaniyam (Service)     28 October 2018

Thank you for the response.

  1. What details would be required?
  2. Why so and what is the recommended procedure?
  3. Do banks grant such a NOC in such situations? Can there be any complication in gaining this from the bank
  4. I reside in Thane district, Maharashtra

G.L.N. Prasad (Retired employee.)     29 October 2018

Contact a Local advocate after mutual settlement and get a relinquishment deed as per his draft on her share and follow his advise.

Rama chary Rachakonda (Secunderabad/Telangana state Highcourt practice watsapp no.9989324294 )     29 October 2018

You can enter relinqueshment deed. Relinquishment deed is a legal document/instrument where a person legally or formally gives up or releases his legal rights of the said property being relinquished in the name of some other person. This is one of the modes of transferring rights of an immovable property


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