I have purchased a Flat at Chennai in April 2017 for Rs 70.00 Lacs . I availed Housing loan of Rs 50.00Lacs from ICICI bank for 8 yrs tenure and I included my son as co-applicant as he has also contributed Rs 10.00Lacs from his savings. Entire EMI for the loan is being paid by me. Property was registered in both names. In sale agreement we have not mentioned the ratio of the property. All the documents are mortgaged with ICICI bank. Now he wants to enjoy the full rights of the said property. I said I will return back the money which he contributed and register the property in my name. He also agreed for settlement. Since the documents are with ICICI I am not able do settlement with my son. Is there any way to settle the matter without getting documents from ICICI bank.
Hello,
You may make a settlement deed mentioning the flat number and all other relevant facts to the same. Also, mention that the original papers are with bank. Intimate the bank also about the said settlement and get the settlement deed registered.
Thereupon as per the settlement the son will relinquish the rights on his share henceforth
Regards
Since there are both name in the title deed and it is mortgage with bank, now your son can execute a registered deed of gift in favour of you to transfer 50 % share of property.
Apply for certified copies and settlement the property in favour of your son mention in deed that bank loan be paid in duecourse
Is it possible to make settlement deed /deed of gift my son without original tittle deed which is mortgaged with ICICI banks. When I approached bank they clearly said with out clearing balance loan documents cannot be given.
Possible
You could arrange in an internal agreement/settlement with your son.
What is in custody of the bank is just the agreement to sell, the property has not been registered and transferred under a conveyance deed.
As advised, enter into an internal arrangement.
Yes the same is possible, as advised earlier opt for the same method.
Contact a local lawyer.
Regards
Bank consent is necessary to create third party rights on the property
2) obtain bank consent then your son can execute gift deed in your favour
Bank would not grant permission unless loan is repaid
Repay loan then gift deed can be executed
ask ur son to executed relinquish deed ( haq Tyag ) in ur favor, settlement may costly.
At least u would have copy registered sale deed.
Yes you can do so. Your son should file a partition suit against you and you may surrender your share in favour of your son and get decree from the court on the basis of this settlement. There after your son will be the absolute owner of the property and he will be entitled to enjoy the property.
Yes gift is a solution to you but your son have to pay the stamp duty on the basis of circle rate on the amount of gift as well as income tax.
1. Presently you and your son are the joint owners of the property. After the mortgage is cleared the title can be transferred absolutely to your name only and only if your relinquishes his share in your favour through a relinquishment deed or gifts it to you through a gift deed.
2. Unless the mortgage is cleared there can be no settlement. The bank will not return any document unless the mortgage is cleared.
Since the property is jointly purchased, the property basically belongs to both, however since yo have availed loan on the equitable mortgage basis from bank executing this property as collateral security, no action for alienation of property by either property shall be maintainable.
To be simple, until the housing loan is fully discharged, you cannot retrieve the ordinal documents from bank, i.e., the bank is the owner till such time the loan is discharged in full.
In case of urgency, you may aproach bank to give NOC for this transaction to be registered with the registrar's office, but the possibilities for such a thing is very least.
Is it possible to make settlement deed /deed of gift my son without original tittle deed which is mortgaged with ICICI banks. When I approached bank they clearly said with out clearing balance loan documents cannot be given.
It is no doubt possible to get the registered gift deed executed by suppressing the fact of mortgage of property with the bank, but when the bank comes to know about this at a later stage, then you may face problem on this.