• Transfer of ownership

Dear sir,

Me and my brother jointly owns a flat in pune, we have taken the loan from SBI and the  loan is also on joint name. Now my brother wants to take his seperate house so I want to remove his name from flat ownership and loan and want to add my wifes name on it.

could you please advise is it possible to transfer ownership and loan liability,  if yes what is the procedure.
Asked 2 years ago in Property Law from Pune, Maharashtra
Your brother may transfer his undivided half ownership by executing relinquishment deed or gift deed or sale deed in favour of your wife and the document should be properly stamped and registered thereafter she may apply to the bank for transfer of loan account in her name to the extent of undivided half share in place of your brother.
S.P. Srivastava
Advocate, New Delhi
703 Answers
13 Consultations
4.8 on 5.0
1. Yes, your brother can gift his share of the property to your wife & 

2. Your wife and your brother can file an application before the Bank to substitute your wife's name as co-borrowrr alongwith you in place of ypour brother's name,

3. For doing the above acts, you shall have to have written permision from the lending Bank since you can not deal with the mortgaged property in any way without the written consent of the mortgagee
Krishna Kishore Ganguly
Advocate, Kolkata
12143 Answers
233 Consultations
5.0 on 5.0
1) you would need bank consent consent to remove your brother name from joint ownership of flat 

2) Further loan must have been sanctioned by bank on basis of your and your brother joint income . please cross check your eligibility  for loan based on your  and your wife  income 

3) after obtaining bank in principle approval your brother can execute deed of relinquishment in your favour . the stamp duty on relinquishment deed is nominal . the said deed also has to be registered . 

4) in the alternative your brother can execute gift deed in your favour . it would attract 2% stamp duty on market value of property as per Ready Reckoner rates .
Ajay Sethi
Advocate, Mumbai
23367 Answers
1224 Consultations
5.0 on 5.0
Your brother can transfer his  half ownership by executing relinquishment deed or gift deed or sale deed in favour of your wife and tshe may apply to the bank for transfer of loan account in her name to the extent of undivided  share in place of your brother.
Rajeev Bari
Advocate, New Delhi
1506 Answers
92 Consultations
3.5 on 5.0
Your brother can transfer his share by way of gift or sell,but as a first step, you must inform the bank as loan agreements often require you to notify the lender about such changes in your position. Unless there is any change in ownership of the property or a payment default, the bank will not interfere. So, if both decide to carry on sharing the loan burden even after parting ways, the lender won't have any problem.

The problem arises when one  does not want to remain a co-applicant if he is not getting ownership of the property. In such a case, the other  may agree to transfer the loan in his name. However, this may not be acceptable to the bank in certain cases.
Minansu Bhadra
Advocate, Kolkata
266 Answers
23 Consultations
4.8 on 5.0
Your brother can transfer the property by registering relinquishment deed or gift deed in your and your wife's favour. So you can easily add her name in the flat.you can remove his name in the bank and transfer the loan liability in your wife's name
Jeshma Mohandas KP
Advocate, Kozhikode
567 Answers
1 Consultations
3.5 on 5.0
I completely agree with KK Ganguly and Ajay Sethi.  No more to add.
Ravinder Pasula
Advocate, Hyderabad
316 Answers
68 Consultations
4.9 on 5.0
Hi, ask your brother to execute gift deed in your favour so that you can avoid registration fee also and you become the owner of the entire flat.
Pradeep Bharathipura
Advocate, Bangalore
4105 Answers
133 Consultations
4.3 on 5.0
Hi,
 1. inform the bank and find out the possibility of transfer of the loan in joint names or your  name alone, get an NOC from the bank and go for  a gift deed. 

 2. The transfer will be absolute and the stamp duty in your case shall be 2%, and you will not have to worry as the gift  deed is the safe and less expensive in terms of stamp duty.

 3. As per the Maharashtra stamp Act, the stamp duty payable on a release deed is (a) Rs.200 if the same is in respect of ancestral property and the release deed is in favour of the persons named in the applicable Article, or (b) in every other case, 5% of the market value (ready reckoner value) of the property. Since the property is not ancestral property, for a release deed, the latter will apply.
 
4. Thus from a stamp duty perspective, it is advisable to execute a gift deed rather than a release deed
Thresiamma G. Mathew
Advocate, Mumbai
1316 Answers
85 Consultations
5.0 on 5.0
Hello,
You need to first of  all contact the bank from where you have the joint loan and get an approval for transfer of the loan in your wife and your name.Ifthe combined income of you and your wife suufices for the purpose there is no reason why this shouldn't be allowed by the bank.
Once you get the sanction from the bank your brother could relinquish his share or execute a gift Deed either in your favour or that of your wife.
S J Mathew
Advocate, Mumbai
1954 Answers
65 Consultations
5.0 on 5.0
A. Whether a loan is obtained under execution of Mortgaged Deed ? If yes, both (you and your brother) are jointly transferred the rights and interest to your bank at the time of obtaining a loan. 

B. Hence, you have to obtain NOC from the bank and check How much income security considered from your brother from the bank?

C. Your brother can gift or sell the property to your wife and later, you and your wife shall execute a fresh agreement and Mortgage deed in favour your bank even if it is permissible by the bank.

D. It is not an easy process because of the bank will not permit to allow above said procedures.
B.T. Ravi
Advocate, Bangalore
736 Answers
31 Consultations
5.0 on 5.0
Hello,
Have you already contacted the bank and has the bank declined to transfer the loan as advised?
The other way around is to pay the loan off completely and getting the bank out of the way.This will permit you to do what you will as far as ownership is concerned.

What can be done practically is to approach another bank to which you can transfer the existing loan and thereby get a loan in the joint name of you and wife with new terms and conditions with possibly better interest rate.
S J Mathew
Advocate, Mumbai
1954 Answers
65 Consultations
5.0 on 5.0
If the bank does not agree either you will have to take the financial burden on you to pay off the entire loan and do the transfer or find another bank/financial institution to lend you loan , then transfer the loan, and asper go ahead with the same procedure of gift deed.
Thresiamma G. Mathew
Advocate, Mumbai
1316 Answers
85 Consultations
5.0 on 5.0
1. If the Bank does not agree with your proposal to substitute the name of your wife as co-borrower with you duly gifting your brother's share of the mortgaged property to her, you have no way other than paying off the entire loan of the Bank and get the property released to execute & register the said Gift Deed,

2. You can talk to other Bank to shift the loan from the present mortgagee Bank to the other Bank with the substitution of co-borroer's name with the permission of the said gift to your wife.
Krishna Kishore Ganguly
Advocate, Kolkata
12143 Answers
233 Consultations
5.0 on 5.0
1) you have not mentioned whether you approached the bank with the proposal for transfer of your brother loan in favour of your wife and reaction of bank to your proposal

2) if bank refuses then you will have to repay the loan . your brother can then execute gift deed or relinquishment deed in your favour . 

3) you can approach other banks with your proposal and if they are agreeable  you can  transfer your loan to that bank  and substitutey our brother name  . the issue would be whether based on your income you meet the eligibility criteria for loan . bank must have sanctioned loan based on your combined income .
Ajay Sethi
Advocate, Mumbai
23367 Answers
1224 Consultations
5.0 on 5.0
You can remove your brother name as co applicant and make it in your name. You transfer it into new generation bank and add your wife as co applicant as it will be a fresh loan
Jeshma Mohandas KP
Advocate, Kozhikode
567 Answers
1 Consultations
3.5 on 5.0
you can approach other banks with your proposal and if they are agreeable  you can  transfer your loan to that bank  and substitute your brother name
Rajeev Bari
Advocate, New Delhi
1506 Answers
92 Consultations
3.5 on 5.0

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