I have a property jointly owned by me and my wife which is mortgaged to a private bank. I have solely arranged finance for purchasing property and also paying EMI. Me and my wife are going for a mutual consent divorce wherein she ll release her 50% rights on the property through release deed. Matter is mentioned in MC divorce petition and filed in family court. Bank is not providing an NOC stating they need final divorce decree wherein property settlement is mentioned. Release deed post divorce costs higher stamp duty. My question is can my wife execute release deed now and later on I will obtain an NOC from bank by showing divorce decree?
Will I have any issues while collecting back property papers after final settlement of loan by me?
Contact a local advocate and entering into some type of legally valid agreement between the mutually consenting parties.
Your query was: My question is can my wife execute the release deed now and later on I will obtain a NOC from the bank by showing a divorce decree?
If the bank is understanding, they can after getting some other security or co-obligant can release a fresh loan and credit the amount to the loan outstanding in joint names.
(In fact a banker is not parting with the amount, and can provide a personal loan to you, debit the account, and close the joint home loan, then providing a fresh housing loan in your name after such relinquishment deed. The bank is neither parting with an additional amount nor parting with security)
Another alternate is asking another bank for taking over the existing loan if the account is regular.
In fact, bankers lack understanding of the law and avoid any step suspecting some unknown risks.
