• Settlement deed from son to father

I have taken an Home loan from ICICI bank by keeping my son as co-borrower.Value of the Property is Rs 65.00Lakhs. I paid Rs 55.00Lacs from ICICI bank loan.My son paid Rs 9.00 lakh from his savings. I am only paying EMI for the loan even though he is also a co borrower. The property was registered on both the names and mortgaged with ICICI bank. Now my son wants his money back and willing to give settlement deed. 
Now is it possible to make settlement deed with my so who is also co borrower for our property which is mortgaged with ICICI bank.
Asked 4 years ago in Property Law
Religion: Hindu

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14 Answers

your son would need bank consent to execute gift deed in your favour

2) bank would refuse to give sanction for gift deed unless loan is repaid

Ajay Sethi
Advocate, Mumbai
87895 Answers
6207 Consultations

5.0 on 5.0

1. The name appearing on a title deed is considered to be the co owner of the property and it doe snot make difference how much he has paid unless it has been specifically mentioned in the deed the allotment of share to the co owners as per their contribution in payment of consideration money.

2. So f your son wish to remove his name from the title of the property he will have to make a gift deed in your name.

3. If the property is mortgaged with a bank then the consent of the bank is required. Otherwise clear the loan first and then make this gift deed.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

As the EMI is paid by you a settle deed from the son for the purchase of his share is a possibility but you can hold the transfer till the loan is complete.

The deed should be made in such a way that the property should be transfer on expiry of EMI and the payment can be done now as advance.

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

If your son is only a co-borrower and not a coparcener, then, the settlement deed can be executed between the parties. However, his liability as a co-borrower shall survive even after the execution of settlement deed.

Rajaganapathy Ganesan
Advocate, Chennai
2085 Answers
8 Consultations

4.9 on 5.0

Firstly, once the name of the borrower and co borrower is entered into the property document then it is quite difficult to amend the same.

Secondly, as it is the liability of both the persons to repay the loan.

Thirdly, but, yes if a settlement deed is made and approved by the bank with conditions been mentioned there as only the first borrower with pay the loan amount as the second one has got settlement deed signed by both the parties.

Sanjay Baniwal
Advocate, South Delhi
5464 Answers
13 Consultations

5.0 on 5.0

Dear Client,

Settlement deed / release deed possible between co owners only.

During mortgage, transfer of ownership in property will be violation of loan agreement but not illegal.

So until u do not default in paying EMI, no questions ask.

Go ahead.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

1. Settlement Deed can be executed AFTER taking proper NOC from the financing Bank.

2. The copy of the settlement deed may be submitted to the Bank, to remove Sons name from the Loan documents and also from the Society /builder /revenue records.

Keep Smiling .... Hemant Agarwal

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

With banks permission you need to get your son transfer his share in the property to your name by way of registered gift or sale, only then you should return his money.

Without banks permission you cannot get the share in the property transferred to your name.

Poonam Desai
Advocate, vadodara
5 Answers

Not rated


he may relinquish his share in the property and you may then pay the said amount to him.

A relinquishment deed will have to be made and registered in order to execute the plan that you are referring to in the question.


Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

while the emi and loan is there noc from bank is required to create a settlement deed or the relinquish deed in your favour,

After settlement deed can be further submitted with bank

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

1. You will have to sign a release deed with your son in which your son will be releasor and you the releasee. The consideration will be the money paid by your son to the bank as a co-borrower.

Yusuf Rampurawala
Advocate, Mumbai
6876 Answers
79 Consultations

5.0 on 5.0

Yes, provided you can manage ICICI people.

Kishan Dutt Kalaskar
Advocate, Bangalore
6050 Answers
381 Consultations

4.8 on 5.0

Since he is the co-borrower, the bank has to give NOC for his proposed setlement transfer to your name and to get out of this loan.

Also you may have to replace a suitable co-borrower.

You can talk to the bank authorities in this regard who will be having a set of forms for completing further formalities in this regard.

T Kalaiselvan
Advocate, Vellore
78050 Answers
1543 Consultations

5.0 on 5.0

Yes, you can make POA on your name and get registered along with settlement deed and to remove his name as co borrower list.

Take NOC from ICICI Bank to settlement deed.

Ganesh Kadam
Advocate, Pune
12335 Answers
191 Consultations

4.9 on 5.0

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