Relinquishment in a joint property
Tichra
(Querist) 23 February 2016
This query is : Resolved
Hi,
I have a joint property with my mother in Gurgaon, Haryana. I want to transfer my ownership to my mother such that, she became the sole owner of the property.
I understand, this can be done either through the gift deed or through deed of Relinquishment.
I need to know, which one is better between them such that it gives 100% rights to my mother on this property and secondly from the cost/tax perspective.
I am not sure, if I need to register the deed, which one shall be cheaper between deed of gift or relinquishment?
Just to add more complexity to this, I have the home loan as well on the same property, on which my mother is also co-applicant. Can I still execute the deed of Relinquishment without the bank approval. if not, what sort of bank approval is required?
Regards
Santosh Goswami,Advocate
(Expert) 23 February 2016
Both are convenient and cheaper as you have not to pay any stamp duty. Only registration fee has to be paid. You can do it even if it is under loan. In any case the property shall remain mortgaged with the bank and in case of default, it can attach it. But it will only be transferred officially in her name after the closure of loan.
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DELHI
Tichra
(Querist) 23 February 2016
Thanks for the prompt response. But do I need to take NOC from the bank, before executing the deed (relinquishment), as the loan will still be on my name as primary applicant.
So say, for example, after the deed is executed and loan remains on my name, where the loan EMI payment happens through my mother account it would not be having any issue, as the original buyer agreement (it was a second sale property) is with the bank (as a mortgage)?
Anirudh
(Expert) 23 February 2016
Even if you relinquish it, it will have no effect till such time the repayment of loan gets over. In case of non-payment, the bank can come after the property which was in your name. In that circumstance, the relinquishment will be discarded as "sham". So, if you have any ill-intention, better beware.
Tichra
(Querist) 24 February 2016
Thanks Anirudh for clarification.
I assure, this is all asked in good context and with no ill intention here. Not sure, of anyone else reading and using this information for.
So, does this mean that I don't have to obtain the NOC from the bank before executing the deed of relinquishment?
In the event of selling this property later, do we require the deed of relinquishment?
PS. This is to address the tax implications, for me, being settled abroad.
Thanks again!. I can't thank enough you guys for being so prompt and providing clarity.
To let you know, the answers provided by you does help people, when talking to their local lawyers.
Dr J C Vashista
(Expert) 24 February 2016
The gift deed shall attract stamp duty besides registration duty as applicable in Haryana, check with a local lawyer.
Moreover, you are required to intimate the bank and take NOC qua the transfer of your share of title in the name of your mother since the bank has a claim and interest in the property.
Rajendra K Goyal
(Expert) 24 February 2016
Well advised, agree with the expert Anirudh.
