Gift deed or sale agreement

During the pendency of home loan neither your parents can be able to transfer the property to your name by any mode i.e., by gift or sale deed or any other mode nor you will be able to acquire the property in a legally valid manner..

If you are desirous of getting the property transferred to your name, then you can repay the home loan through the borrowers, after which the bank will release the title documents and will issue a discharge certificate duly registered in the name of the borrowers..

In the meantime you can execute a loan agreement with your parents for the money you gave them to discharge the loan and on that basis they can transfer the property to your name by a registered sale deed.

If there was no loan on the property then they could have straightaway transferred the property to your name by a gift deed.

Very well explained by the expert Sri T.Kalaiselvan Sir.  follow his advice.

Gift Deed is a document that transfers property to another owner as a gift. A Gift Deed is valid only when it is without any consideration in return by one family member/ friend to another. It is mandatory to register Gift Deed, according to Section 17 of the Registration Act, 1908.

Thank you for reply. 2 query.

1) Suppose if i give loan to parents and they pay that amount to bank and clear dues. After paying bank loan,will they able to transfer property as a Gift to me. any legal issue in it??? This way..gift deed valid or not??

Yes.  It is ok and valid.

The property retrieved after discharging the home loan, becomes your parents' own and absolute property, hence they can very well transfer the same by a registered gift deed or registered settlement deed or even a registered sale deed.

Other than the sale deed  no consideration amount can be received for transferrring the property by a registered gift deed. ,

Hence you may have to collect the loan amount separately