Morning respected Lawyers, This is Kamala Kumar B from Andhra Pradesh. My grand father has a site and he gave for development(Registered under GPA of Development Agreement) to build the flats with 50:50 basis. From our share I have obtained one flat on my name. Recently I have gone for the bank loan on the above said property, there one legal advisor of the bank stated that, with this above said GPA agreement you cannot avail loan, else you have to register the property on the name of wife(Gift Deed / Pacca Sale Deed), but it costs more for me. But we have given the GPA to the developer for his share of flats(50%) only to sale. Rest all remaining on name. Kindly can you please give any suggestions With regards, Kamala Kumar B
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There must have been supplementary agreement executed between builder and grand father wherein certain flats were allotted to your grandfather
2) did your grandfather execute gift deed in your favour
3) you could not have got flat in your name unless there was gift deed or sale deed or deed of family settlement executed by grand father in your name
1. Since GPA is not an instrument of permanent nature and is automatically revoked with the death of the maker or under other circumstances on this basis no valid title is created.
2.Hence the bank is right in not replying upon the unregistered development agreement or the GPA.
3. Now get a gift deed or other deed of your choice executed and registered on which basis equitable mortgage can certainly be created by the bank an financial assistance can be given.
thanks for the quick reply sir, Just know i have gone thru the documents and my grand father made a registered settlement agreement with in the family to all his grand children along with his equal share of the land. While going to the GPA development agreement along with grand father we all are included as the land lords with equal share. What my doubt is- because as a registred landlord is it necessary to transfer or gift deed on my wife name, to get the bank loan. with regards, Kamala Kumar B
It is not necessary to execute gift deed in favour of wife to avail bank loan
Dear Sir,
Sometimes some legal advisors may raise some issues unnecessarily. If they are not co-operative then approach another bank.
Legal Advisor is idiot. Avoid whatever he said, absolute foolish. All you need is to submit partition deed through which this can be ascertain, which flat belongs to you.
Through settlement deed, trasfer of ownership is confirm but in multiple family members. So it is not certain without documentary evidence which falt belongs to you, only % of ownership in land is ascertainable.
Or There is settlement deed, MOU executed with builder with 50 50 share in flat, Purpose of GPA is to authorize builder to sell it`s share of flat and dose not include in chain of documents of your 50%.
All you need to get NOC from other members, that flat belongs to you and no objection if mortgage to bank.
if family settlement deed executed and registered then there is no need to execute Gift Deed.
No it's not needed to transfer to your wife. You can seek the provision under which the said transfer is asked by bank
Dear
The legal advisor of bank is absolutely right you cannot avail loan on a GPA because it doesn't define ownership over a property.
You need to register the flat on your name or your wife's name to get the loan from bank.
You obtain a registered conveyance deed from the builder for the flat constructed as your share so that you will be having a proper and registered title on your name or else you may have to execute a registered gift deed to your wife's name so that there is a registered title deed to the property which would make the property eligible for home loan.
You cannot help but to bear the cost of registration which would include stamp duty and the registration charges.
Without any title document for the constructed property, you cannot claim title because you are a title holder to the land or vacant site only.
Therefore after the builder constructed the house on the vacant site, there is no document to prove your title to the constructed property, hence you may have to create a registered title document in favor of anyone so that the bank would accept the document for mortgage home loan.
You may ask the builder to give you a conveyance deed registered on your name to the house constructed on your own vacant site, which may also serve as a registered document.