• Best possible option to transfer property

Hi, We have a land on my mother's name and we are planning to construct a house on that land and I am planning to take home loan as my mother is a house wife and I have an elder brother but his earnings are not that much. So, I will be paying all the loan amount. Now I also need the benefit of income tax rebate on home loans, but for that I should be the co-owner of the property. So, to transfer my property I have consulted some lawyers who has suggested me to go for a fresh registration or a gift deed. But I don't want to remove my mother from the property but also want me to be part of it so that I can get the income tax benefit. I also want that if my brother wants he can also take his share from the property. I know its too many if and buts. But can somebody help me in coming up with a proper solution so that I can be able to claim home loan benefits for taxation. Taxation is the only reason for this transfer.
Asked 4 years ago in Property Law
Religion: Hindu

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13 Answers

if the person is paying 100% Home Loan EMI, then he can claim entire property. In this case, person B decided Buying a Joint Property with Parents. He took a home loan and was paying 100% EMI. After some time, the differences cropped up between person B and his parents. His parents decided to inherit their share in the property of person B to their daughter because of disagreements with son i.e. person B. Person B challenged the WILL of his parents, and the court ruled for parents. Therefore just because i am paying the EMI of the property does not mean that i own the share of my parents in the property.

Mohammed Mujeeb
Advocate, Hyderabad
19031 Answers
32 Consultations

4.5 on 5.0

Your mother can execute gift deed for 50 per cent share in land

2) gift deed should be duly stamped and registered

Ajay Sethi
Advocate, Mumbai
87973 Answers
6207 Consultations

5.0 on 5.0

1. In that event you can get half share in the property transferred in your name where by both you and your mother will remain as co owner of the house in equal share.

2. To do this gift deed is best option where stamp duty is bare minimum.

3.So make a gift deed and both of you remain its co sharer in equal share holding.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

Sir you with your mother can gift you and your brother 1/3 undivided share in the property in that way your mother's name won't be removed from property. So mother can execute and register a gift deed in your favour of undivided share in the property.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

You can take home loan as applicant and make mother as coapplicant .the property will remain in the mother's name and you can take the home loan for construction on the property you will get the benefit of home loan and interest deduction on the basis that the loan is procured in your name.

Vimlesh Prasad Mishra
Advocate, Lucknow
6848 Answers
23 Consultations

4.9 on 5.0

Mother can transfer her 50 per cent share in land and house to whomsoever she pleases

2) if she dies intestate then her share would devolve on you and your siblings

Ajay Sethi
Advocate, Mumbai
87973 Answers
6207 Consultations

5.0 on 5.0

Yes in life of mother she shall be complete owner of the 50 percent share and she can transfer to anyone she wishes to transfer. The house shall be attached to the property and shall be in same ownership as land if not transferred separately.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

The remaining half share f your mother will be divided among his legal heirs which include all his son and daughter,s , if any.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

This is my response to you:

1. Ask your mother to give you 50% ownership of that land;

2. You construct the house with the help of home loan and take benefit of the rebate;

3. After the house is constructed and you have paid off all the loans then think about equal division to all;

4. You can then gift a certain share to your brother or your mother can gift a certain share to your brother;

5. So you need not worry about all that, since its within family and there are no disputes.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

1. EXECUTE a proper stamp duty paid and registered Gift Deed, as follows:

a) First name: Yourself (where mother gifts you 34% share in her property)

b) Second name: Brother (where mother gifts you 33% share in her property)

c) Third name: Mother retains 33% share in her property.

2. Based on the above, execute another Family Settlement Deed, wherein the construction expenditure and ownership and future consideration of the construction costs can be mentioned, in case of future disputes.

3. Based on the Gift Deed, you will be able to take Bank Loan and Income Tax benefits upto the ratio of the construction cost inputted by you.

Keep Smiling .... Hemant Agarwal

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

5.0 on 5.0

If you want to avail a benefit you may have to lose a privilege.

Under the given situation, your mother can divide the property to you and your brother by a family arrangement deed, get it registered so that each individual become and independent and absolute owner of their respecitve share of properties.

If you dont want to remove your mother's name from the proeprty then she can execute a registered gift deed in your favor with a portion of the property in your name so that you both can remain joint owners of the property.

T Kalaiselvan
Advocate, Vellore
78131 Answers
1543 Consultations

5.0 on 5.0

Thank you so much for all your response. One follow up, if I do a gift deed of 50% in my name. Then how the rest of the 50% will be decided in future. I suppose that my mother will have ownership and as per her opinion she can transfer the property to any one? And does the housed built on a land also has a separate ownership or is it just the land that has some ownership?

Even though she is transferring 50% share in the property, until and unless it is properly partitioned, it will remain as jointly owned property, hence you may get a separate possession of the property now gifted to you so that you may not face any difficulty after constructing the building in the vacant site.

T Kalaiselvan
Advocate, Vellore
78131 Answers
1543 Consultations

5.0 on 5.0

- The rest 50% will remain with her and she can dispose it off later as she wishes through Will or otherwise.

- After she gifts you the 50%, the land and anything built on it will be co-owned by you and your mother, unless the land gifted is clearly demarcated in the gift deed. In that case, you may build the house on your share of the land.

Shekhar Banerjee
Advocate, Delhi
156 Answers
1 Consultation

5.0 on 5.0

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