• Transferring property from brother to brother

Dear Sir(s),

My brother is staying in Bangalore and is having a flat in Faridabad, Haryana, in his name. He wants to transfer that flat to me. The flat is a builder flat is is at the stage of possession, and we have no outstanding loan dues. We have been requested by the builder to register the flat. My brother wants to register the flat in my name.

Can my brother gift that flat to me via a gift deed? If so, could you please lay down the procedure(s) involved?

Or else, could you please let us know any other/better/best way to execute this transfer with minimum capital involvement?

Awaiting your reply.

Thanks!
Glen
Asked 3 years ago in Property Law from New Delhi, Delhi
your brother can execute gift deed in your favour . have it duly stamped and registered . once gift deed is executed you would be absolute owner of said flat . however please note that builder may levy transfer charges for transferring flat in your name .
Ajay Sethi
Advocate, Mumbai
23192 Answers
1218 Consultations
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The best way in which your brother can make you the legal owner of this flat is by making a gift deed in your favour. Get a gift deed made by your lawyer and have it registered in accordance with the law prevailing in Haryana. You will thereafter become the sole owner of this flat and your rights will flow out of the gift deed. The builder will debit the transfer charges to your brother.
Ashish Davessar
Advocate, Jaipur
18088 Answers
447 Consultations
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yes builders always demand their pound of flesh . the best strategy is to wait for builder to deliver possession of flats . let society be formed . then have gift deed executed . society cannot charge more than RS 25,000 as transfer charges at least in Maharashtra . you save  lot of  money
Ajay Sethi
Advocate, Mumbai
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1218 Consultations
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thanks for your appreciation
Ajay Sethi
Advocate, Mumbai
23192 Answers
1218 Consultations
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As rightly suggested by my esteemed colleague Mr.Sethi, you may wait till the possession is delivered and the society is formed. Once that is done the gift deed may be made. However, it is equally true that builders also understand such strategies. As such, he may on one pretext or another delay the delivery of possession to your brother. The transfer charges in Haryana are on the higher side.
Ashish Davessar
Advocate, Jaipur
18088 Answers
447 Consultations
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You may register it in the name of anyone including your mother, but by doing this you will not be able to evade the transfer charges as and when the ownership transfer is to be made.
Ashish Davessar
Advocate, Jaipur
18088 Answers
447 Consultations
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has sale deed being made ? if not your brother can request builder to prepare agreement in name of your mother alone . whether transfer charges would be demanded in such a case by the builder is a million dollar question .
 since your mother was co applicant and your brother has relinquished rights in favour of mother only builder  should not levy high transfer charges
Ajay Sethi
Advocate, Mumbai
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See you have to understand, since the property is still not registered in your brother's name, only the builder can now transfer the name of allottee, prior to registration. the other way is to first register the property in your brother's name i.e after paying due stamp duty and then gift the same property to you(which entails stamp duty equivalent to circle rate)

If both the stamp duty is less than the transfer amount being charged by the builder and one sale registration then you can proceed with transfer.

With respect to tax liability please consult a CA.
Setu Niket
Advocate, New Delhi
47 Answers
20 Consultations
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your brother  will have the option to select any one property as being used for self-occupation. The other property will be treated as 'deemed to be let out' and the estimated annual rent will be considered as taxable. 

in case your brother gives said property on rent the rental income received from the 2nd property would be taxed . 

for further clarifications contact your CA
Ajay Sethi
Advocate, Mumbai
23192 Answers
1218 Consultations
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