You can get it as gift deed from your father. You don't have to show a sale transaction
I want to property from my father with a bank loan
My father (aged 59) owns a property. Now, he wants to buy another property in his favour. Due to approval issue from irrigation department Banks wont provide sufficient loan to buy new property. Now, only chance is to sell the existing property. As I was interested in existing property I would like to buy it from my father with a bank loan and later he will invest on another property. My father willing to sell his property to me. When I approach SBI they not allowed this for Home loan. My question: "Is it legal to buy a property from my father..? Is there any law/Court Judgement on this..?"
Asked 4 years ago in Property Law
Religion: Hindu
12 Answers
See you can legally buy property from your father though the bank's doesn't approve loan in inter family transfer.
Rating me.terible won't grant you loan it is policy of bank keep the property as mortgage and take the loan but the interest rates hall be higher.
Or alternatively on new property father can take loan and you can be coapplicant.
There is no bar to purchase property from
your father
your father can execute registered sale deed in your favour
1. It is not clear why SBI has refused to sanction loan.
2. It is perfectly legal for son to purchase a property from his father. No judgment/law is required.
1. I am not sure why the bank loan is cancelled. There is no legal bar at all to by property from any person including children or parents.
2. However that does not mean the bank is bound to disburse loan. as releasing financial assistance depends solely on discretion of bank and it varies with bank to bank.
3. So if SBI has rejected the loan application you can approach another bank.
4. Else make a gift deed from father which would attract minimal stamp duty.
Yes, you can buy property from father only conditions is he should be a sound mind and free from coercion.
1. It is perfectly legal enough to buy Father's property via a registered Sale Deed.
2. The Bank may not entertain the Loan application, maybe because it is a agricultural land and maybe there might be existing loan /lien /govt. claim on the same.
Public banks are like this, employed with idiots, Approach any private bank, loan will process in a day.
Property can be purchased from any legal owner irrespective of relation.
- Yes, legally you can buy a property from your father.
- But before sanctioning of the loan , the bank will look that the said property does not have any mortage or housing loan presently.
- If, there is no loan taken by your father after morgaging the said property , then bank can not refuse your loan, merely on the ground that the said property is in your fathers name.
- If the said property is mortgaged , then bank will give you a housing loan for the purpose of purchase of the property which will be equal to the agreed-upon purchase price minus whatever down payment you are making to your father.
- The sanctioned loan amount will paid to your father, who will transfer the title to the property to your name, and .further the property will be titled in your name,
- As per the RBI circular, SBI cannot reject your loan application without furnishing valid reason(s) for the same.
- You should lodge your complaint before RBI online as well.
Probably No, banks do not promote family transactions reason being it can be fake by just paying the stamp duty against the transaction and money lended by bank can be used within family for other purposes too. So please check with the respective banks , you want to apply for Home loan. Most of the banks will do not enter in such types of transactions.
Dear Sir,
You can purchase property from your father legally . But it is the discretionary power of SBI either to sanction Home loan or not. You may approach any other bank for such home loan .
Fo buying and selling the property you dont need any court judgment.
Why should the bank refuse to give you loan for buying the loan from your father, there may be some other reason for not granting loan, you can check it.
You can very well buy a property from your father by a registered sale deed, there is no legal infirmity in it, if the SBI is not granting loan, you may approach some other bank which is ready to give you loan.
