Hello, I am from Kodaikanal where buildings are built as basement + ground floor + first floor. My father had 3.2 cents plot which due to a financial situation he executed a sale deed to third part finance and had got money. During this period with the finance got he raised the basement level without walls and also built the ground floor. The ground floor has 8 shops in it which are being rented out. Recently I contributed my savings to return the borrowed money to the third party finance and they came to the registrar office and executed a sale deed cancellation document by way of mutual. This cancellation document reference is now reflecting in the Encumbrance Certificate in the Remarks portion of the earlier sale deed executed to the third party mentioning the document is cancelled. My father wants to split the property as below, build walls in the basement to make it a house and give to my sister B. Give 4 shops each in the ground floor to my Sister's A & B. Give the terrace above ground floor to me (only son) so that I can raise the first floor myself. My queries now are: a) is the cancellation procedure followed by us ok, does it have any concern. b) will I be able to get a housing loan if my dad just writes the terrace on my name to build on it. Will I need to have share in the basement to be a part of the land owner to be eligible for loan? What should be the method followed to split this property?
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Registered Deed of cancellation is final and binding on parties
2) shops in ground floor should be given equally to you and your sisters
3) for carrying on any construction on terrace consent of your sisters would be required
4) before your father executed gift deed in favour of your sisters better carry on construction on terrace
As per the encumbrance certificate the registration of new sale deed is reflected. So your father becomes the absolute owner of the said property.
As per the writings in your query, the basement and first floor of the building are not completed so far. Without finishing a basement it is difficult to transfer the share properly in first floor as well as basement.
A transfer by way of gift is no small undertaking and it should be given the thought and care it deserves before committing to the process. If the first floor is not built at the time of execution of gift, the possession and acceptance of gift could not be done properly . Please do understand that mere registration of the gift deed does not make the gift complete or effective. .As per sec 124 of TP act, A gift comprising both existing and future property is void as to the latter. And also expect much more difficulties .
So before executing gift deeds, finish the construction on terrace. Otherwise it may make troubles in future.
1. It will continue to reflect.
2. The process followed by you is correct.
3. Your father is free to split the property in the manner he desires.
1. Has your father "executed a sale deed cancellation document" or registered the cancellation deed? If the cancellation deed has been registered by the Registrar, then title of the property has gone back to your father as the cancellation procedure has been accepted to be right by the Registrar.
2. If you own the terrace, you shall also own proportionate share of the land on which the building has been constructed.
The registered cancellation deed is legally valid.
Your father can prepare a registered partition deed partitioning the property as per his desire into three schedule of properties accordingly and get the deed registered.
This will confer the the proposed title to your name.
The partition deed may be drawn considering the common areas to the shareholders.
