Hello, I am an NRI residing in USA. My mother-in-law wants to sell one of her house in Eastern UP and my wife wants to purchase it to keep it in family. 1) I wanted to know what is the best cost effective option to get the property transferred: - Sale deed transfer via registry/stamp - Transfer from mother to daughter (if there is such an option) - Hibanama - Will 2) In case registry, should I pay the amount basis the circle rate or what my mother-in-law is asking? I will anyways be paying in full the asking amount via my NRO account. Appreciate the help !
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Sale deed can be done but hibanama is a much better option. A gift deed. But in muslim law a gift deed cannot be valid unless there is a consideration.
In case of a sale deed the amount can be below the circle rate but the stamp duty to be paid would be as per the minimum circle rate.
For women there is a discount in stamp duty.
In a gift deed/hibanama registration is not required. So it would be better option.
Best is will without any stamp duty. Other way is gift deed which will have stamp duty
Since your wife is paying her mother for purchase of property registered sale deed is best option
2) sale deed should mention actual sale price paid to mother
1. Go for sale deed transfer from your mother-in-law to your wife so that other legal heirs of your mother-in-law can't dispute the sale deed transaction/transfer effected unlike transfer through Gift (Hibbanama) or through WILL.
2. You can pay as per the market rate equivalent to the rate your mother-in-law is asking and not the circle rate.
- If your wife is purchasing the said property after paying amount/consideration then a Sale deed is better option
- HIBA is an unconditional transfer of property, made immediately and without any exchange or consideration, by one person to another and accepted by or on behalf of the latter.
- Further , As per Muslim Law , A HIBA of movable or immovable property is valid , whether it is oral or in writing, whether it is attested or registered or not, provided that the delivery of possession has taken place.
- Hence, legally your mother in law can transfer the said property by way of HIBA , in the name of her daughter, even without paying registration fee a the office of sub registrar.
- Further , like a Gift deed , there should be two witnesses for verifying that the said document has been prepared in their presence. however registration of gift deed is suggested.
- Further, , for selling the property and to take banking loan etc. ,, the better option is sale deed if your wife is paying amount to her mother.
Sale between a mother and a daughter will be absurd. Your mother-in-law may execute and register a Will in your wife's name, which will take effect after your MIL's lifetime. Alternatively, she may transfer the property to your wife by means of a gift deed.
Dear Client,
As per the facts which have been provided, the best option is registered sale deed if your wife is paying amount to her mother.
Thank You.
Your mother in law can transfer the property now lying exclusively on her name alone to anyone of her choice.
If you want to avoid the registration charges and the stamp duty then she can transfer the property to her daughter by a Hibanama. For transfer of property by this mode, no stamp duty or registration charges will be required to be paid because the transfer of immovable property by a Hibanama executed on an unregistered document is also legally valid
If you foresee any dispute at a future date by any legal heirs of your mother in law after her lifetime, then your mother in law can transfer her property to your wife's name by executing a registered sale deed which cannot be challenged by anyone for any reason, however this will require the payment of applicable stamp duty and registration charges.
The stamp duty shall have to be paid as per the government guidelines value which can be found in the state government's websites or can be had from the registrar's office too.
