conditional gift deed can be executed by father that daughter shall maintain mother during her lifetime . mother shall be entitled to enjoy the property during her lifetime
Land gift deed
I'm the only son to my father, besides a sister. My sister is fighting a divorce, in the meantime she needs to support her daughter's education overseas. She is planning on executing unconditional gift deed on a house owned solely by my father. I'm concerned as it doesn't state anything for my mother, like ownership back to my mother after education loan repayment, right to collect rent during that period and such. I want to secure something for my mother as she too contributed to the house. please let me know if there is anyway to include conditions on this gift deed. Both my parents are over age limits banks require. Thank you.
Asked 2 years ago in Property Law
Religion: Hindu
16 Answers
You can make conditional gift deed but the conditions must not be unreasonable making the whole deed void
your sister is not having any rights in your father's property, at least not during his lifetime, which is applicable equally to you too.
Therefore the proposed unconditional gift deed to be executed by her (it is not known that in whose favor is she intending to execute it), is not a legally valid document.
If she wants to avail loan for her child's education, she can apply for educational loan or can obtain loan either from you or from your father.
Therefore since the property belongs to your father, it is he who wil enjoy the rental income derived from the property till his lifetime.
There is no question of your sister getting any rights in the property nor in the rental income at this stage.
Therefore it is not advisable to get any gift deed, which is not only invalid but not maintainable in law in future too.
Thank you all for your time. I do have one question to Mr. Kalaiselvan. Sir, when you say "If she wants to avail loan for her child's education, she can apply for educational loan or can obtain loan either from you or from your father." I'm not sure I understand. The banks she contacted so far are hesitant on providing loan due to his age 73 and cannot stand a guarantor. Hence she is resorting to transfer of the property on her name through gift deed.
Asked 2 years ago
Without executing a Gift Deed by your father for the property in favour of your sister for her daughter's higher education, your sister's daughter can obtain education loan by mortgaging your father's property in favour of the Bank, which is lending the education loan. The bank will not ask your father to stand as surety since it's a secured loan and there is no need for your father to stand as surety.
mother can stand as guarantor for loan taken by daughter for her education .
Such condition not valid. Once gift deed executed, she will be sole owner.
She will only get mortgage loan in this age
- As per law , neither you and nor your sister having any right over the property during the life time of father
- Hence, your sister cannot execute any gift deed for the property which is not in her name and share
- However, your father can execute a gift deed in favour of your sister for making her single owner of the property, if this property is a self acquired property of your father.
- Since, she is taking this property in her name for the purpose of taking loan , then this gift deed can be a conditional gift deed by the father.
- However , if this deed will be executed in her name , then after the demise of your parents you will loose your right over the property .
By transferring the property to her by a gift deed, your father has to relinquish all his rights in the property. The bank will approve education loan to her on the basis of the property to be offered as collateral security. However for this she should have clear and marketable title on her name, the conditional gift deed will not confer title to her hence the purpose will not be solved.
For a gift to be considered valid, it must satisfy certain elements, including the transfer of ownership, the existence of the property, the absence of consideration, the free consent of the donor, and the acceptance of the gift by the donee
In your situation, you want your parents to enjoy the revenue of the property till their lifetime, which becomes a condition hindering the absolute transfer of the property to her and the same would not be acceptable to the bank togrant loan.
Therefore your father can arrange for loan to her through his own sources if he wants to assist her during this crisis.
Thank you all for your great inputs. We are still working through this back and forth. One thing the bank officer suggested was to execute a MOU stating clearing the conditions associated to this transfer and purpose of this transaction within it. Leaving the unconditional gift deed intact. Does this sound like a good approach ? I'm thinking at a high level contents within MOU as below.. state the purpose of this gift deed. return the property after the purpose is served back to my father and/or mother. proceeds from rent, repairs will be taken care by my father/mother as usual. Now, should the MOU agreement pre-date that of the Gift deed ? Please let me know.
Asked 2 years ago
It is not correct approach
registered gift deed over rides earlier MOU
The MOU agreement has to be executed prior to the registration of Gift Deed.
If the MOU route would be feasible and may not create any legal complication thereafter, you can take the assistance of an experienced lawyer to prepare the MOU with terms suiting the circumstances and proceed.
- You can enter MOU after giving all the conditions .
Invalid options.
Consult a property lawyer: Engage the services of a property lawyer who can review the specific circumstances and provide advice tailored to your situation. They will be able to guide you through the legal requirements and options available to secure your mother's interests.
Discuss with your sister: Have an open and honest conversation with your sister about your concerns regarding the gift deed and the need to secure your mother's interests. It may be possible to reach an agreement that addresses your concerns while still allowing your sister to support her daughter's education.
Consider a family settlement agreement: A family settlement agreement is a legally binding agreement that can be created to settle property-related disputes among family members. It can outline the terms and conditions of the transfer of the property, including provisions for your mother's interests. This agreement would need to be drafted by a lawyer and signed by all parties involved.
Explore other options: If obtaining a loan is difficult due to your father's age, you may want to explore alternative financing options. This could include seeking loans from private lenders or exploring other sources of funding for your sister's daughter's education.
Regarding your additional question about executing an MOU (Memorandum of Understanding), it is possible to use an MOU to outline the conditions and expectations associated with the gift deed. However, it is important to note that an MOU is generally not legally binding in the same way as a contract. It may be helpful to have the MOU drafted by a lawyer and have all parties involved sign it. The specific details, including the date of the MOU in relation to the gift deed, would depend on the legal requirements in your jurisdiction.
Not necessary