1) you are purchasing property by registered sale deed from uncle
2) there is no bar to home loan being sanctioned for purchase of land and carrying on construction on said property
I need to purchase plot from my uncle (brother of my father) and construct house with housing loan
Hello, My grandmother owns a property. She shared the property to four of her children (two of them are my dad and uncle). Then my uncle gave compensation to the other three and bought the whole property in 2005. Now the property is on my uncle's name. Now I wish to buy that property and construct a new house. I needed a home loan for that. But few banks said there is Gift Deed problem as we belong to the same family. So the home loan is not possible. Few banks told to get legal advice. I needed a home loan to buy and construct. Can you please give advice on how to work it out?
Asked 6 years ago in Property Law
Religion: Hindu
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9 Answers
Dear Sir,
The following information may kindly be read:
Check approval status of your property
For builder projects, check the following:
- Note that banks may not always approve all towers, all blocks and all floors in a project at the same time. So, it’s important that you check the approval status for the specific flat that you are buying. You can do so by sending the details over mail to [deleted]
- The payment plan scheme under which the project has been approved – builders sell projects under time linked plans (TLP), construction linked plans (CLP), subvention schemes (80:20, 10:80:10, 10:10:80, 6:88:6 and others). Most banks fund projects only under CLP. Some housing finance companies fund projects under TLP and subvention schemes. Typically a very large number or builder projects are approved under CLP but the approval list for TLP and subvention schemes is much shorter.
- Total cost of the flat may include various heads like basis price, PLC, parking, EDC, IDC, electrification charges, club membership fees, security deposit, maintenance charges, stamp duty, registration charges, service tax and VAT. Typically, banks will fund upto 75 to 80% of the eligible cost, which will not include the items mentioned in orange above. Some banks may fund service tax and VAT partially.
- In case the builder is offering possession, will the conveyance deed be simultaneously registered or not? Sometimes, there may be a gap of 6 months to a year (or even longer) between possession and execution of conveyance deed. Some banks may not fund projects during this intervening period even if they are on approved projects list.
- Ensure that all payments to the builder are made by cheque from your own account only.
For resale properties, check the following:
- The property should be registered in the name of the seller and the entire chain from first conveyance of the property upto the last sale should be available.
- For self constructed property, approved map plan should be available.
- Some banks will fund upto 150% of the registry amount subject to 75% of market value. Few banks may restrict the maximum loan amount to 75% of agreement value and 75% of market value, whichever is lower.
- Banks don’t fund properties in gram panchayat areas or those built without approved building plan.
The documents required to be submitted to the bank are:
1. Sale deed in the name of your grandmother.
2. Document sharing the property by your grandmother in favour of 4 children.
3. Document in favour of your uncle executed by other three children.
4. Bayana agreement with uncle.
If chain of title is complete and you are ready to submit the same in original, there is no problem with the bank to give housing loan. Submit the copies of chain of documents to the bank after striking off each page with endorsement "for housing loan purpose" and ask the bank to get them verified from bank empanelled advocate.
Home loan can be sanctioned on gifted property
which is accepted as primary security by banks.
The important points considered by banks are
ownership is lawfully transferred and the owner
has right to sale the property. If these two rights
are established one can very well mortgage his
gifted property and get a loan.
You can get the loan by mortgage. If you are not getting loan to construct.
What do you mean by gift deed problem ?
If property was duly transferred via registered deed - release/gift/sale than his ownership is clear. What is the problem, chain of document and title is clear.
You can have sale deed prepared and including all uncle's and their sons name should add in it and get registered by makes like tripartite agreement.
If your uncle had bought the property by a registered sale deed then he becomes an absolute owner of the property and you can ask him to execute a registered sale deed in your favor.
If he had not bought it by registered sale deed then at least the other shareholders should have executed a registered gift deed in his favor.
Without a registered document the transfer of property to your uncle's name is not legally valid or recognised, hence you may ask him to get a registered document in his favor duly executed by the other three members from whom he bought this property.
Alternately you may produce all the property related documents/papers before a local advocate and get a proper legal opinion on the basis of the facts that can be ascertained from the documents produced before him.
Yes you can buy the property within the family but for that you need to make a sale agreement in which you show that you have transfer the token money to your uncle for purchase of flat and rest is promised to him after home loan from bank.
