You can execute gift deed in favour of your wife and 2 daughters of your one third share in property
2) gift deed should be duly stamped and registered
3) they can avail bank loanfir redevelopment of property
Settlment deed
I am having a property 1/3 share of my property (around 720 sq. ft) in Chennai which I acquired from my Father through a Partition Deed among my three brothers way back 35 years back. Now I am the sole owner of my 1/3 share in my name and I am also regularly paying taxes etc. in my name. Now I am having two daughters. I would like to give the property to my two daughters through a deed duly registered. My daughters would like to demolish the property and construct two or three flats in their individual names by getting finance under Housing Loan from a Bank. Can it be possible by a Settlement Deed or by a Gift Deed or any other solution. Further can I and my spouse get any hold on their property to stay in the house till our death. But this should not hinder their right to get a Bank Loan for construction. Can you please suggest / give your valuable opinion on this. Please contact over phone or give suggestion to my e mail address. My name is D CHANDRA SEKAR E Mail : [deleted]
Asked 6 years ago in Property Law
Religion: Hindu
First answer received in 10 minutes.
Lawyers are available now to answer your questions.
13 Answers
See you can gift your daughter the said property but the gift cannot be with any condition so in that case you cannot retain the life rights in the property when you are giving property by gift deed.
To gift the property a registered gift deed is required and stamp duty on same need to be paid .
For your life rights in said property daughters can make separate agreement with you giving life rights in property so that will not hinder there loan and they get property absolutely by gift.
1. A conditional Registered Gift Deed can be executed for the purposes, with strategic clauses, that allows the parents to stay in the house till their life time.
2. Similarly a registered "Family Settlement Deed" (without monetary consideration) can be executed with mutual consent & joint signatures of all parties, defining the property distribution, time frame and long term rights over the property.
Dear Client,
Under both heads, trasfer of ownership valid. Same stamp duty payable. You can retain right to stay by executing conditional sale deed that , gift deed will complete after your death. For bank loan , you can give additional guarantee.
you can execute a registered revocable gift deed in their favour.stating a clause that the said deed can be revoked if they dispossess you from the said property. You can also execute will with this condition other than gift deed.
It can be through contingent gift.
Regards
G.Rajaganapathy
Lawyer
High Court of Madras
Hello,
you may transfer the said piece of land by means of a gift deed. As and when the title is transferred by means of a gift deed, they may go ahead and take the housing loan over the said property.
Regards
You can execute a gift deed and gift deed should duly stamped and registered.
1. A gift deed should be executed in this scenario.
2. If you wish to preserve your and your spouse's right to reside in the property during your lifetime then you have to execute a will in favour of your daughters by creating a life estate in favour of self and spouse. On the basis of will your daughters cannot get a loan as a will comes into operation only after the demise of testator.
Hi,
You may do the settlement deed, which will be easier but protect your rights and don't let the property go in the hands of daughter because the said action would be hindrance to your right. You need to add the clause that the daughters would be providing the separate residence to you in that premises till lifetime of you and you wife. Also add the clause to revoke the rights of daughters, if they fail to fulfill their obligations during life time of you and your wife.
Once you alienate the property by means of a gift deed or a settlement deed in favour of your daughters, you cannot claim any right to possession and enjoyment later on. It will be at their will and pleasure. It is better to leave your estate by means of a carefully drafted Will, whereby you reserve your right of possession and enjoyment during your lifetime. In such a case, your daughters cannot mortgage the property for any loan, but you may offer it as a third-party security for loan purposes.
You can transfer the property to your daughters by executing a registered settlement deed which will be cost effective as well.
If it is a conditional settlement i.e., retaining life interest in it then it can be treated as an encumbrance which bank may not entertain for grant of loan.
You can convince your daughters to not to go for redevelopment of the property to flats so soon i.e., immediately after this settlement deed, or you can enter into an agreement with one of your daughters to allot one flat to your names which shall remain in your possession and enjoyment till your lifetime and to be acquired by them after that.
It will depend on how you talk to yor daughters on this and proceed the way which is best and suitable as per prevailing circumstances.
- As per the information mentioned in the present query, makes it clear that you had got the property by way of division/ Inheritance (as coming from father).
- Now, the nature of the property will remain ancestral for your daughters also, and they would be having their share in it as per the amendment of 2005 in Inheritance law.
- There can be settlement deed specifying that they and you both would be having equal shares in the property after demolition in a new property.
- You cannot gift something which is already theirs as per law.
- And as per the settlement deed one portion would come to you and then if you wish you can release your share in favour of your daughters with certain conditions into it.