Kishore (LE) 21 July 2011

What type of Agreement needed to share a house?(Diff Floor)

Hi Respected Experts,

Below is my query please guide me.

1. My brother registered a land in his name + his wife's name. (Registration is over last April 2011)

2. They applied a loan for both Land + Construction. Loan is granted & we are starting construction.

3. Now as per the approval we can construct Ground + FastFloor + SecondFloor. (The land is of 1800 sft)

4. Now we both decided to share the same house 50% / 50%. We are planing like 2nd Floor mine, 1st Floor his, Ground Floor undevided sharing.

5. We both are financially equal. Both are married. We want to share because, as I was planing to buy some land & construct. Doing so we can save the land cust.

6. What formalities we should do for the sharing. Can some one please explain the complete formalities in details? We are ready to do re-registration also.

Regards

Kishore

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3 Replies

adv. rajeev ( rajoo ) (practicing advocate) 21 July 2011

your brother will have to execute the regd., rights relinquish deed of 50%, but encumbrance goes with the property, so first sort out the loan matter and get the regd., rights reliqnuish deed.

Kishore (LE) 21 July 2011

Hi Rajeev,

Thabks for the replay. There is no problem with the loan. Its already approved from bank.

I dont have any problem if loan will be there in his name, we can share the loan ammount. I want to know the formalities need to be done. I didn't get your poing exactly what needs to be done?

Regards

Kishore

JT Rajasuriya, Chennai (Advocate 98410 53790) 31 July 2011

See, once your brother takes up a loan with a set of facts - he cannot later on lose his part interest in property without bank's permission. And this arrangement cannot be interfered until 20 years (the period of loan).

So better to get 50% of land registered and then proceed with construction, take loan, etc. Assuming even if you do not have repayment capacity, the bank can still provide loan based on the security of the property (along with your interest) and the repayment capacity of your brother.