Sale deed is best option as consideration is being paid by elder brother to younger brother
2) sale deed should be duly stamped and registered
Joint Property - Release deed is better or Sale Deed is better
I need advice own our unique situation. We have two flats in Pimple Saudagar jointly owned by two brothers. 1. First Property - Owners - Younger Brother + Elder Brother 2. Second Property - Owners - Younger Brother + Elder Brother Other information 1. Both property have separate index 2. 2. It is mortgaged to bank for home loan. 3. Q1. Now elder brother wants to buy property this property . Is release dead is better choice or proper sale dead is recommended ? Q2. As main applicant is younger brother and elder brother is co-applicant so bank done not allow to change main applicant in home loan. Bank done provide loan if u buy property between blood relative (very surprise to hear that ). What should be the recommended transactions so that elder brother can buy property from younger in clear way and get loan from bank to pay for half property. Thanks
Asked 5 years ago in Property Law
Religion: Hindu
14 Answers
Better execute a sale deed
1. Both in maharashtra attract same stamp duty so if he is purchasing that property then sale deed for your same is better.
2. Bank loan can be transferred as the consideration is paid then bank can transfer the loan on account of elder brother and can provide NOC for sale.
Registered Release deed is more appropriate
Hello,
A sale deed is a good option for this
Regards
If consideration is being paid by elder to younger brother, then either release or sale deed will do
It does not matter
Its not that there is lesser stamp duty payable on either release or sale deed
For a release deed of ancestral property made between the coparcenors, the stamp duty is nominal 200
However this is not ancestral property
So you can go for any - sale or release deed
There are different answers to your queries
1 you have to consider sale of the flat to your brother in case he is looking for any capital gain to purchase a new property in this case there will be transactions of money between both brothers and the blood will be registered in his name on payment of the requisite stamp duty
2 in case there is no such payment involved then the stamp duty can be saved by gifting the property to each other and registering the property and payment of nominal stamp duty for gift transfers
3. In case alone has been taken on the property you need to discuss the modality with the bank that alone is being transferred in one name because of the transfer of the property and take no objection certificate as you have to get the document from the bank to get the property registration and further you have to deposit the registration documents along with the trailing documents to the bank
Take the money and execute release deed. Sale deed will cost you more stamp duty.
Execute Release deed, bank NOC not required.
- As per the information mentioned in the presnt query, makes it clear that bank is creating a issue in giving Home Loan on the point of buying the property from the blood relation.
- The best way to let one brother to buy the property from the other is sale deed, if the release deed is for the consideration.
- Though release deed satisfy the purpose other than the sale deed as it shows the love and affection between the perosons, but sale deed is purely a commercial transaction which sets out to be on consideration and liability to pay the stamp duty.
- But, if the release deed is for the consideration then it would also require to pay the stamp duty.
- So, you will have to decide what exactly you wish to do, as both the deeds are sufficient to get the loan, but the present condition needs sale deed to be executed as release deed without consideration doesn’t require another brother to take loan.
1. If either of the brother is proposing to buy the share of property of the other brother, then it would be better that he may get a registered sale deed executed in his favor for a consideration amount.
2. Since there exists a loan, the bank has to give NOC to the seller of his share to the other joint owner without which there can be no transaction be done with the registrar's office.
If the bank is not granting loan for the reasons cited by you then the other person can transfer the share of his property in favor of the buyer by executing a registered settlement or gift deed, which cannot be objected by bank.
Thank you experts. Current Status : For joint property, a existing home loan from bank is cleared. So bank is no more a concern. Need advise on 1. Should we go ahead with two (for both properties) gift deeds ? Some consideration has to be paid. Can we that mention in gift deed ? 2. If you receive property as gift does it have any tax implecation ? 3. As per society by laws , society NOC is not chargeable if it is between blood relative. Generally it cost 25000 rs.
Asked 5 years ago
1. In gift deed there cannot be mention of any consideration amount.
2. On sale of gift there is capital gain tax on receiving gift property there is no tax.
3.yes this is correct.
Gift deed is out of natural love and affection
2) in present case consideration is being paid so sale deed has to be executed
3) no transfer charges are leviable
1. Gift deed cannot be made with any consideration, instead a settlement deed can be executed.
2. The donor or donee will not suffer any tax implication in the gift deed since it is not sold by a sale deed.
3. The societies charge Rs. 25,000/- for NOC and any transfer, hence it is unavoidable
1. Yes
2. Yes.
3. Yes for relative it is not chargeable in society.