• Property on the name of mother and son

Recently I have purchased a property on the name of myself (Mother -Sweta joshi) and my son's name who is a minor (age - 5 years). I have signed as natural guardian for him in the agreement. The agreement is registered on Mar 18, 2017. Now when I approached housing loan, then they denied to provide loan based on the reason that minor cannot be a part of any contract. Now I am stuck because I have already registered the property. The bank is asking to remove his name from the agreement through release deed, gift deed or any such documents. Seeking your advice for next step. And what if I want to sell the property in future.
Asked 7 years ago in Property Law
Religion: Hindu

2 answers received in 30 minutes.

Lawyers are available now to answer your questions.

6 Answers

THE HINDU MINORITY & GUARDIANSHIP ACT 1956 provide the protection of minors property. The natural guardian of a Hindu minor has power, subject to the provisions of this section, to do all acts which are necessary or reasonable and proper for the benefit of the minor or for the realization, protection or benefit of the minor’s estate; but the guardian can in no case bind the minor by a personal covenant.

The natural guardian shall not, without the previous permission of the court,-

(a) mortgage or charge, or transfer by sale, gift, exchange or otherwise, any part of the immovable property of the minor, or

(b) lease any part of such property for a term exceeding five years or for a term extending more than one year beyond the date on which the minor will attain majority.

Solution:-

Seek permission from the court for appointment of Guardian of the property of The Minor Ward and petition Filed Under Section 7 and 16 of the Guardians And Wards Act 1890 for sale of immovable property.

Ajay N S
Advocate, Ernakulam
4080 Answers
111 Consultations

5.0 on 5.0

Way out for you is to seek court permission before you make any .charge or create a lien on minor's property. You have to move an application before the District Judge under GW Act. Similarly when you have to sell the property courts permission shall be required. In my opinion the child can not execute a RD or a Gift

H. S. Thukral
Advocate, New Delhi
620 Answers
204 Consultations

5.0 on 5.0

execute deed of cancellation for cancellation of deed for purchase of the property

2) if you want to sell property in future you would need court consent

Ajay Sethi
Advocate, Mumbai
95215 Answers
7611 Consultations

5.0 on 5.0

1. Having registered the property jointly in your and your son's name you cannot remove his name as the property of a minor cannot be alienated without the permission of the guardian court.

2. You should now seek the permission of the guardian judge to mortgage the property for and on behalf of your son.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

1. The Bank is right in informing you that a minor can not be party to the loan agreement where in his share of the property is being mortgaged and he becomes bound to refund the loan being taken based on the said aggreement.

2. You have only one option left before you now. You shall have to apply before the local District Judge for availing his permission to mortgage your minor son's share of the property for the housing loan for buying or constructing a house wherein he also will be equal shareholder with you. This is required because District Judge is the trusty of the properties of all the minors located within his jurisdiction and he grants such permission against specific applications if welfare of the minor whose property is proposed to be mortgaged can be established.

3. You can not get a gift or relinquishment deed executed and registered for and on behalf of your minor son for any reason whatsoever without the written sanction of the local District Judge for reason explained above.

Krishna Kishore Ganguly
Advocate, Kolkata
27245 Answers
726 Consultations

5.0 on 5.0

The bank cannot ask you to remove the name of the minor from the title deed.

Wherever there is a minor interest involved in an immovable property, the court only has any power to alienate the minor's interest in the property.

If this bank is not granting loan then you may approach some other bank which would be ready and willing to sanction loan.

You can very well sign on behalf of yor minor son as his guardian for loan, but remember that even for mortgaging the minor's property, court's permission is to be sought.

T Kalaiselvan
Advocate, Vellore
85416 Answers
2239 Consultations

5.0 on 5.0

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer