Transferring mortgaged property through gift deed

Hello,

Transferring property during a loan is not possible. You have to seek permission from the bank. And housing loan for gift agreement is also not possible. You have to first get prior sanction for you from the bank thereafter if the bank permit you can proceed with the transaction. 

 Hello!  

According to section 122 of the Transfer of Property Act, 1882, one can transfer immovable property through a gift deed. A gift deed is a legal document that describes the voluntary transfer of a gift from the donor (owner of the property) to the donee (receiver of gift) without any monetary favour in return.  

Registration of gift deed is mandatory under (Section 17 of the Registration Act, 1908 and Section 123 of the Transfer of Property Act and the transfer will be invalid if the deed is not registered. For a valid gift, there should also be acceptance from the side of the donee.  

As per your query, the mortgaged property can be transferred through a gift deed but some requirements had to be fulfilled. The person gifting the mortgaged property should either clear his dues before gifting the property or the donee has to accept the property with all the dues and fulfil the obligations attached to the property. It becomes the duty of the donee to pay the loan on the property.  

Best Regards,       

Vasundhara Singh      

Law Student