Dear Forum,
My sincere thanks for your time. I have entered a little complex situation. After I went overseas, I built a duplex house for my parents on the pre-existing plot owned by my dad. This property is in my dad's name. It was my intention for my sister to build a house above this house. Now, to build this house by my sister, a gift deed of 600 sq feet of undivided share along with rights to build 2nd and 3rd floor in the name of my sister was executed by my dad 4 yrs ago. I was not clear about this 600sq feet undivided share (what that meant), but was told to me that this is the way it is normally done.
My dad, would now like to do a settlement deed of the ground floor duplex house (where my parents live) with their life interest. I however have asked a property advocate, who was of the opinion that this 600sq feet undivided share could cause trouble in the future, lets say if my sister sells the house in the top floor and the buyer demands for 600 sq feet of space ( ex parking etc..). He suggested to do a rectification deed on the gift deed that was done in favour of my sister to clarify what 600 sq feet meant, whether it is common passage for the stairs, terrace etc..
It transpires that my sister has pledged the gift deed to the bank to avail loan for her property. Please note she has now already constructed the property (duplex) on top of my dad's duplex.
My query is, does this gift deed regarding 600 sq feet undivided share land me in trouble in future when I or my dad would like to sell ground floor house? and on the contrary if my sister sells her top floor house in future, can the buyer create problems ecause of the same 600 sq feet issue.
The total area of the plot is 1800 sq feet therefore 1/3rd undivided land share (600 sq feet) has been executed as fift deed.
Thank you very much in advance
Dr Girish G Babu
