gift deed
amit
(Querist) 29 January 2014
This query is : Resolved
My father bought a flat on mortgage loan the duration is of 15 years ot of which 5 years are remaining now my father is wishing to transfer the said flat to me I want to ask wheather it is possible? I am also the primary guarantor in the home loan which my father took please guide.
Advocate M.Bhadra
(Expert) 29 January 2014
Your father can not transfer by way of Gift or Sale the mortgaged property with the bank before full repayment of loan.An equitable mortgage can be created by depositing the original documents of title relating to the property proposed to be mortgaged with an intention to create security in favour of the mortgagee. However, in terms of the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI Act), security interests (including mortgages) created in favour of secured creditors can be enforced by that creditor without court or tribunal intervention (section 13(1), SARFAESI Act). However in practice, for enforcement of mortgages, lenders file actions in courts and rarely undertake private sale.
Dr J C Vashista
(Expert) 30 January 2014
Your father can execute a will in your favour which shall be opertaive after his death.
However, title of flat can be transferred in your name only after liquidation of loan.
R.V.RAO
(Expert) 30 January 2014
during subsistence of the housing loan,the house is the security of the lender.he will not forego his security till the loan is fully repaid.
So ask your father to create a will for the property in your favour.
or else you/your father need to prepay the housing loan fully and then your father can gift the property to you.
malipeddi jaggarao
(Expert) 30 January 2014
To sum up the advice, your father can not do anything with the property until the total liability is cleared against the mortgage of same property. He can not execute either Gift Deed or Sale Deed. But he can bequeath a Will in your favour pending clearance of loan, which will be operative only after his demise.
Rajendra K Goyal
(Expert) 30 January 2014
Well advised by the experts, agree to it.
ajay sethi
(Expert) 30 January 2014
repay the loan and then execute gift deed . bank will refuse to permit transfer of flat unless loan is repaid
T. Kalaiselvan, Advocate
(Expert) 01 February 2014
Unless the entire home loan is discharged in full, your father will not be in a position to gift the same in your favor, the bank will not permit him to do it. First clear the entire loan and then ask your father to execute the gift deed in your favor.
