Gift deed or release deed in divorce
Jam
(Querist) 09 February 2013
This query is : Resolved
Dear members,
I have already filed for mutual consent divorce. Divorce is due for next month.
Now, I want to do a gift deed my share of property to my wife, property is a joint property on both of our names.
What is right option to do here, GIFT deed or RELEASE deed?
Second Query:
My wife is going to take loan against this property apart from existing loan. If I am going to gift this property to her then Would I still be responsible for loan on that property? Do I need to do some legal processing in order to clear my name out of this loan?
I would appreciate if you can revert with detailed answer.
ajay sethi
(Expert) 09 February 2013
gift deed attracts 2%stamp duty . relinquishment deed attracts nominal stamp duty . if you are executing gift deed get document stamped and tregd . have property transferred in name of wife .
you wont be responsible for your wife loan
R.K Nanda
(Expert) 09 February 2013
agree with Sethi.
Raj Kumar Makkad
(Expert) 10 February 2013
Relinquishment deed is best option and you shall not be responsible for repayment of loan if the same is obtained after the execution and registration of release deed and its due entry in the relevant record.
Jam
(Querist) 13 February 2013
Thank you all, I appreciate your help highly.
Now, in the mean time, I hired a lawyer and passed him your opinion and then he said that this property is purchased by you & your wife and is not ancestral property. Hence release deed can not be made. Is it true?
Is my lawyer missing anything here?
Sethi Sir/Makkad Sir, what I should do in such case? Can I sill do a gift deed if I have filed for divorce?
Kindly respond
Ramesh
(Expert) 18 February 2013
Release deed can be executed among co-owners also, they need not be co-parceners.
prabhakar singh
(Expert) 18 February 2013
Unfortunately I do not subscribe the view expressed by your lawyer.He is certainly misconceiving things for want of experiences in this field of law.
When there are joint owners or co owners or coparceners of a property any of them can execute a relinquishment deed in others' favor to the extent of his her share to QUIT his/her share claim in the property for consideration or without consideration.There is no doubt about it.
But in your peculiar case where a divorce is also pending before taking any step you should get the alimony first fixed and then
in lieu there of make this transfer either by relinquishment or by a sale deed but never by a gift deed.
