Legal liability of co-applicant in housing loan - plot ownership through gift deed
Yaaros
(Querist) 12 October 2016
This query is : Resolved
When I applied for housing loan in HDFC for constructing house in a plot which I received from my mother by gift deed, they are insisting to add my mother as co-applicant saying its mandatory since my ownership on the plot is through gift deed.
So, I would like to know whether its a mandatory legal requirement all banks insists for the same.
Whether the co-applicant would have any legal/monetary liability in case I fail to repay the loan?
Whether co-applicant do get any ownership rights on the property?
Rajendra K Goyal
(Expert) 12 October 2016
You are the owner of the property after it was gifted to you. Bank should not refuse to sanction loan on the question of title of gifted property if you fulfill all other requirements.
Rajendra K Goyal
(Expert) 12 October 2016
You said:
I would like to know whether its a mandatory legal requirement all banks insists for the same.
Answer:
Not mandatory, all Banks do not put such conditions on title of gifted property.
You said:
Whether the co-applicant would have any legal/monetary liability in case I fail to repay the loan?
Answer:
Yes in such case liability would be joint and several. If you default, or otherwise, she can be asked to pay.
You said:
Whether co-applicant do get any ownership rights on the property?
Answer:
Ownership is decided by title deed / documents and not by loan papers.
Kumar Doab
(Expert) 12 October 2016
What is this M/s HDFC?
M/s HDFC Bank Ltd or M/s HDFC Ltd?
Donor is no more owner.
Has M/s HDFC stated so in writing?
Kumar Doab
(Expert) 12 October 2016
Expert Mr. Goyal has explained.
The lenders add such clauses to defend their interest.
The apprehension might be if donor rescinds the gift!
adv.bharat @ PUNE
(Expert) 12 October 2016
Agreed with expert opinion.
Noting to be added.
Ms.Usha Kapoor
(Expert) 13 October 2016
Agree with expert Mr.RK Goyal.
P. Venu
(Expert) 13 October 2016
The Bank's stand is not justified unless the gift deed is conditional.
Kumar Doab
(Expert) 13 October 2016
Approach other lenders if you are not satisfied.
Rajendra K Goyal
(Expert) 13 October 2016
You can approach some public sector Bank to explore the possibility of loan.
