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 .
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 10 years ago in Property Law
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9 Answers
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.
Thankyou Ajayji and Ashishji. Appreciate your quick responses. The builder is asking us for a hefty sum of money (around 2 lacs) as part of transfer charges. Is there any way in which we could avoid this capital involved? Thanks.
Asked 10 years ago
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
Thanks for your response Ajayji.
Asked 10 years ago
thanks for your appreciation
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.
I had been thinking on another lines now, but require your insights. Both my brother and Mother are applicants for this flat. Can we, however, register the flat in the name of my Mother alone? Thanks.
Asked 10 years ago
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.
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
Thanks! Those were really helpful answers. Let me talk to the builders now and let's see what they have to say. I hope they should wave off at least a part of the transfer charges, if my mother were to go alone on this. Thanks Again. Best regards, Glen.
Asked 10 years ago
Here comes a question from my brother - if he remains as an applicant in this flat, and purchases another flat in Bangalore, would he be having any obligation(s) towards the income tax department because of the Faridabad Flat?
Asked 10 years ago
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.
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