formisc 01 February 2018

Release of co-ownership from property on loan

Hi there,

I have registered my flat in both my name and husband's name and also have home loan in both our names. I only paid downpayment and all the EMIs entirely for 4 years. We were separated for 3.5 years very soon after registration because he was living with other woman and just rejoined after the woman left him. Everyone in the apartment knows I wasliving alone for 3 years and he brainwashed me to shift to kerala to stay with in laws as they missed their grand daughter for so many years. Now he is living in the flat alone.

After rejoining only I am understanding the sole purpose of rejoining is not for the sake of my daughter or family but because he got debts and FIL is refusing to give his properties for repayment as it is his own earned properties and only source is this flat and my jewels .

I was going through terrible situation right after the registration after coming to know about his relationships so couldn't do the khata transfer. When I realised the facts and did the khata transfer so I can tranfer the ownership and loan to myself , I understand it is not possible to do as it is on loan. I need to completely repay to do so.

Earlier, though his name is there in papers he didn't stayed there so creditors had doubt why we are staying separate few KMs away being married and many of his loan got rejected when he tried to get giving my flat address as permanenet address (that is what is told to me just for address purpose and nothing else). But now all the creditors will know his flat and he is staying there as full owner's name.

I have two questions,

1. Whether any creditors can demand for my property for his debts as it also his name? Without my concern can he pledge my property? Am I liable for his debts even though I have not signed or even know he got loans and debts from money lenders?

2. Is there any other way to convert the property in my name? Will changing the bank help in paying out in the current bank and making release deed and registering in my name? Will that work?

Reply Follow

8 Replies

Krishna 01 February 2018

1. As your husband is a co-owner, he is having a share. To recover his loans, creditors may attach his share. Please note that the bank which has given housing loan, you and your husband have rights on the property.
2. If you are eligible to get for total loan taken and if your husband agrees to sell his share to you, get his share also in your name by sale deed or whatsoever.

formisc 01 February 2018

Originally posted by : Krishna

2. If you are eligible to get for total loan taken and if your husband agrees to sell his share to you, get his share also in your name by sale deed or whatsoever.

I am only eligible to avail the loan , and the loan is issued based on my documents only and I am only paying. He is OK if it can be done. When I checked one person for registering either by gift deed or release deed , he told it is not possible as the property is under loan.Loan should be cleared and then only this registration process will be possible. When I checked the bank to make it as a single applicant and they told the same it is not possible .

Kumar Doab (FIN) 01 February 2018

Your query is founded on marital disputes….

One spouse is not responsible for debts of other spouse…..

The said property is already under debt (share of both spouses).

A sensible lender may not give loan on IT till past debt is paid off……………..or repaying capacity is duly ascertained and found satisfactory in case of takeover by another lender……and even in that case IT being joint ownership lender may want both owner (sharers) to consent…

The secured creditor ( lender as in your case) in cases of say; Home Loans have a charge on secured asset ( Flat as in your case) and until fully repaid IT may not give up the charge and issue NOC and return pledged docs ( sale deed etc ) ..

GO thru the T&C in loan application, loan approval, loan agreement ……………It is believed that you are having authenticated copies of all of these and proof of having paid EMI and loan statement of each month…….

Your spouse cannot pledge or dispose more than his share….

Krishna 01 February 2018

You can try this. Apply home loan from some other bank. While transferring the loan amount, then try to get your husband share registred in your name.I'm giving this advice as one of my friend done like this. Both husband and wife are joint applicants in loan from HDFC and coowned the property. When they decided to divorce, wife got total loan transferred in her name( Freshly applied loan again) and husband registred his share in her name amicably.

formisc 02 February 2018

Thanks for all of ur responses.

Kumar Doab (FIN) 02 February 2018

A sensible buyer shall obtain proper legal opinion and his/her counsels, financers may want consent/witness of other sharer/joint owner (you)..

As posted above lenders can stake charge on his estate/property including but not limited to his share in Flat….Secured lender has a charge on IT.

The current lender may agree to allow take over by another lender….of course after getting IT’S debt and other charges if any, fully paid…..

The other spouse can sign any deed to dispose his share in anyone’s favor including by release deed in your fair…after debt to current lender is paid…and NOC is issued………without which IT would be transgression ( by any or both borrowers ) and current lender may proceed against both borrowers…

If current lender, future lender, other spouse agrees to such proposal and all requisite documents are signed, debt is paid and legal opinion obtained by future lender clears such proposal then you may sail thru…..

You need to satisfy all of the steps involved in such transaction….

Check with current lender, future lender, other spouse………..