Home loan to purchase property from mama and masi
Novice
(Querist) 21 November 2015
This query is : Resolved
Hi
My mother,mama and masi are equal co-owners of a property.
I now want to apply for a home loan to purchase the share of my mama and masi.
Is this allowed as per property law ?
If no, then is there a way for my mother to surrender her stake so that the property is only of my mama and masi and can I then get a home loan for the purchase ?
Look forward to you advice.
Sudhir Kumar, Advocate
(Expert) 22 November 2015
Is this allowed as per property law ?
property law allows you to purchase a well defined and demarcated property. You just want to purchase the stake of mama na mausi without purchasing the stake of mother. SO the proposal is not there for you to get any title on the whole or divided (and demarcated property.
Sudhir Kumar, Advocate
(Expert) 22 November 2015
I then get a home loan for the purchase ?
NOT A LEGAL QUERY.
ASK BANK.
Kumar Doab
(Expert) 22 November 2015
The bank would prefer if the boundaries and ownership is clearly marked.
Everyone seems to be willing hence you should not face any difficulty.
Your mother is willing may prefer a registered deed and collect the proceeds in proper manner.
Novice
(Querist) 22 November 2015
Dear Sudhir and Kumar
Thank you for your kind advice.
Yes everyone is willing to go ahead with this transaction ( my mother, mama and masi ) but the banks are not accepting my loan application to even purchase the full property from all three co-owners because my mother is a co-owner.
They are calling it a family transaction regardless of whether I purchase the full property or only 2/3rd share.
The only option I see now is to get the property transferred on my mothers and my name and then I can apply for loan against property at higher interest rate.
Is there any other option like executing Relinquishment deed.
Would be grateful for your clear advice.
Rajendra K Goyal
(Expert) 22 November 2015
Your mother can gift her share to you.
You can purchase share of your mama and Masi. Discuss with the Bank, also talk to legal adviser of the Bank.
You can try from some other Bank for the loan.
Novice
(Querist) 22 November 2015
Dear Mr Goyal
Thank you very much.
I have checked with many banks and also companies like India bulls.
But they don't seem to have good quality legal advisors or experts who can provide a feasible solution.
Everyone wants easy and straightforward deals and make commission or they are afraid of failures.
No one is genuinely interested in servicing clients or taking up challenging assignment and improve their learnings.
I will be writing to RBI ombudsman for help and see what happens parallely.
Sudhir Kumar, Advocate
(Expert) 22 November 2015
you said
"I have answers for all the questions but I withhold my reply .
I do so because I do not want you to be harmed by views formed without information and information you a re hiding. "
If banks are employing legal advisor who do not suit to your intellect then you have no remedy.
Sudhir Kumar, Advocate
(Expert) 22 November 2015
"Everyone wants easy and straightforward deals and make commission or they are afraid of failures. "
You have no choice.
You cannot by way of any legal advise compel any bank to enter into a deal which their legal advisors do not approve.
They are trading in loan and not in speculations and to serve the clients (what you say genuinely) and do challenging assignment.
Each bank official has a family to feed and just cannot risk being sacked or jailed. So they operates as per guidelines of the employers.
Sudhir Kumar, Advocate
(Expert) 22 November 2015
given facts do indicate the the case is not genuine to be sanctioned.
(i) the property is not demarcated.
(ii) all the shareholders are not selling the same. Your mother is not a seller. She is also not applicant of loan nor she is purchasing share of others.
SO this way you are not purchasing a marketable titled from your uncle/aunts. The stake of your mother still remains.
SO you cannot mortgage the entire land.
Therefore shall not dream of getting loan from any bank.
Sudhir Kumar, Advocate
(Expert) 22 November 2015
in this situation you can get loan from some unlicensed unscrupulous money lender who is not bothered about title do fland he is bother to serve the customer by chargeing 20 times more interest than bank who is sure that (i) you will not be able to refund (ii) he can take back money /property.
Rajendra K Goyal
(Expert) 23 November 2015
Try at SBI, if they do not agree meet higher officials.
K.S.Srinivas
(Expert) 23 November 2015
Agreed with Sri Rajendra K Goyal.
Sudhir Kumar, Advocate
(Expert) 23 November 2015
please do share the fact to enhance knowledge of experts here if you get loan form SBI.
Rajendra K Goyal
(Expert) 23 November 2015
Sudhir Kumar sir,
State bank use set norms / vast experience and on many occasions borrower came to know legal shortcomings / drawbacks in the documents / title from them.
Bank may give loan on the share purchased from his other relatives provided other norms are met.
T. Kalaiselvan, Advocate
(Expert) 30 November 2015
Bank will confirm marketable title to grant loan. If you possess the same , you will become eligible for loan. granting loan is the discretion of bank, they may be flexible or hold to the rules very strictly. There is no compulsion or pressure on bank to sanction loan if the title is not clear.
