• Gift settlement deed

Respected sir,
i am try to buy a property.i applied a home loan from sbi.
but legal advicer of sbi returns the documents.

details of the property : smt.annamma setteled the property in favour of lilly and mary vide gift settlement deed in no 361 /1956 of narakkal sro,is subject to that same shall be devolved upon them only after death of annamma.it is also specifically mentioned that after their death,property shall be shared equally between lilly and mary.but lilly sold her right over the said property before of death of annamma in 1977,smt annamma also signd the document as a witness. annamma died in 1990.in 2013 mary transfer her property in to her son joseph via another gift settelement deed.
what is the legal validity of the old transfer...?
Asked 2 years ago in Property Law from ernakulam, Kerala
1. Without perusing the concerned deed and other connected deeds it is very difficult to advise.
2. If both Lilly and Mary transferred their allotted share only without encroaching other's share then the said deeds are valid.
3. I am not aware the reason of objection of SBI. Had thie been disclosed here, further advice can be given.
Devajyoti Barman
Advocate, Kolkata
5154 Answers
54 Consultations
4.9 on 5.0
Hi, it is very difficult to give  proper opinion based on your narration without going through the documents we can't give proper opinion therefore it is better you contact local advocate and get the opinion.
Pradeep Bharathipura
Advocate, Bangalore
4104 Answers
133 Consultations
4.3 on 5.0
1) once gift deed is executed donor has no right . title interest in the property 

2)as per gift deed settler had life interest in property and property would devolve on her 2 daughters after her demise . 

3) the sale by lily during life time of Settler was illegal 

4) the  gift by Mary in 2013 after demise of her mother was perfectly legal . 

5) SBI has rejected your application for home loan as Mary had no power to sell the property during lifetime of her mother
Ajay Sethi
Advocate, Mumbai
23118 Answers
1214 Consultations
5.0 on 5.0
1. The sale made by Lily during the life time of Annamma is illegal. 

2. According to the deed executed by Annamma, Lily and Mary had no right in the property during the life time of Annamma. Lily acted in contravention of the deed and sold the property, which is totally illegal.

3. The transfer by Mary of her share in the property to her son is in consonance with the condition of transfer laid down in the gift deed by Annamma. So the transfer made by Mary is absolutely legal. 

4. Since the transfer by Lily is illegal, the bank has rejected your application for home loan. 

5. It is better to drop the idea of purchasing the property as the title is not clear and marketable.
Ashish Davessar
Advocate, Jaipur
18057 Answers
445 Consultations
5.0 on 5.0
1. Annamma registered a gift deed in favour of Lily and Mary,

2. Lily sold the property which she owned as per the said Gift Deed executed by Annamma,

3.The sad sale is perfectly valid, more son since it was witnessed by Annamma,

4. Enquire as to why Bank's lawyer has opined against the said loan.
Krishna Kishore Ganguly
Advocate, Kolkata
12043 Answers
228 Consultations
5.0 on 5.0
1) you should ask SBI for reasons as to why it has rejected your application for home loan 

2) SBi would have rejected your application only if your title was not clear and marketable . 

3) contact a local lawyer . let him peruse the papers mentioned by you . then based on legal advice proceed further 

4) you can if you so desire approach another bank for home loan . if  the sai bank also rejects your application dont purchase the property . 

5) as per the gift deed mother had life interest in the property and sale by daughter lily during her lifetime was illegal 

6)  section 43 of transfer act protects interests of transferee when property has fraudulently been transferred by transferor ie lily in present case .  when it is discovered that the transferor acquired an interest in the transferred property, at the option of the transferees, he is entitled to get the restitution of interest in property got by the transferor, provided the transferor acquires such interest in the property during which contract of transfer must subsist."

7) on demise of mother Lily acquired transferable interest in the property . it would protect the purchaser interest as lily had fruadelently transferred property but on mother death became owner of her share in property
Ajay Sethi
Advocate, Mumbai
23118 Answers
1214 Consultations
5.0 on 5.0
Hello,
1) Settlement Deed, Will and Gift Deed are three different types of documents. It is a bit confusing as to what was the document Annamma executed in favour of Mary and Lily giving them rights over her property. In a Gift deed the right is absolute and it transfers to the donee immediately whereas if it is a will it would become effective only after the death of the testator.

2) If the transaction by Lily was valid can be determined only on the basis of the fact if she had acquired the rights during Annamma's lifetime. If she had received the property by means of a Gift Deed she was able to make a valid sale as she had the title.

3) If Mary was made owner absolutely by virtue of the Gift Annamma made to her she has the right to Gift it to her son Joseph vide another Gift Deed. The crux of the matter is if Lily or Mary had acquired the ownership at the time of making further transfers.

4) It would be desirable to take a look at the various documents involved to arrive at a determination of why the SBI bank may have turned down your loan application. If the transfers that happened did not help determine if the property has a clear and marketable title the bank would refuse loan.

5) You could enquire with SBI as to why specifically the loan was declined and at the same time approach another Nationalised Bank which might grant you loan or help find out what the objection in granting loan. It would be advisable to show copies of all the relevant documents to a lawyer locally and seek help.
S J Mathew
Advocate, Mumbai
1949 Answers
65 Consultations
5.0 on 5.0
1. As suggested in my earlier post enquire as to why Bank's lawyer has opined against the said loan,

2. We are giving pur opinion based on your statement without perusing the documents,

3. Annamma had executed and registered a conditional gift deed stating that the property will be owned by Lily and mary after her death which she gerself has waived by witnessing the sale deed executed and registerd by Lily,

4. Since Annamma has expired, the share of the property owned by Mary can be bought legally,

5. However, get the documents/papers checked in the light of the opinion given  by the bank's lawyer.
Krishna Kishore Ganguly
Advocate, Kolkata
12043 Answers
228 Consultations
5.0 on 5.0
there is a gift deed but that gift was contingent because it would come in force after death of donor. but in your case donor was agree to being a witness in the sale of property which was subject to gift deed. lilly could not sold that property because her share in the property did not came into existence. means she had no right in the property at the time of sale. act of the donor shows that she was well aware of the sale so that gift deed was deemed to be cancelled by the donor and lilly and marry got their interest due to her share in the ancestral property. in this condition you can file a declaratory suit under specific relief act and made clear your right in the property. it takes very short period, may be 2-3 months to decide. after declaration you can approach for the loan.
Shivendra Pratap Singh
Advocate, Lucknow
2729 Answers
41 Consultations
4.9 on 5.0

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