Release Deed to sister-in-law
My brother and I got a home loan for land+construction, purchased a land and built the house. The land registry is in our joint names. The original registry(of land) is mortgaged to bank. Now my brother wants to exit the property so he can buy another property for his family. I would like to replace him with my wife as joint owner and co-borrower of the loan in a exchange of a consideration.
I want to know if relinquish (release) deed can be executed by him in favor of my wife (his sister-in-law). I spoke to bank manager and he agreed to release my brother from loan and add my wife as co-borrower. Also he agreed to cooperate with me to provide any approvals/NOCs needed to help us get the release deed registered.
Asked in Property Law from Indore, Madhya Pradesh
1. Yes, he by way of deed of replenishment or deed of gift can release his share.
2.once that is done you can add your wife as co=applicant even if she does not make any financial contribution.
Go ahead and best of luck.
1) your brother can execute deed of relinquishment wherein he relinquishes his interest in property in your favour as you are co owner of the premises .
2) The stamp duty and registration charges will differ on the basis of whether the parties are members of a family or otherwise.
3) you can draw the release deed for monetary consideration. A release is always an interest or share of the concerned property. The person in whose favour the release is made usually has a pre-existing interest in the property
You can get release deed in the name of your wife.
A gift deed can also be made .you should make a choice between gift and release deed after enquiring about the stamp duty in the registrar office.
If the Bank permits and give NOC there should not be any issues .
Stam duty for the release deed other than ancestral property is applicable which you can find out from registration office depending on the market value.
For loan purpose if bank insist an indemnity bond and NOC can be made.
For mutation the release deed and NOC will be needed along with other documents
yes. your brother can execute a relinquishment deed in favour of your wife. no issues on that.
just ensure that your banker is fully aware and supports the execution of relinquishment deed.
Hi, your brother can execute release deed in favour of you so that you become the absolute owner of the property.
2. After that you may include your wife name as co-borrower in the bank loan.
1. Since you are paying the consideration to him, a sale/settlement /relinquishment deed can be executed and registered in favour of your wife by your brother with the written approval of the mortgagee Bank,
2. It can be a clean sale/relinquishment deed against consideration after its draft been approved by the said Bank,
3. Accordingly Bank will insist for execution of fresh mortgage papers and guarantee agreements from her to substitute her as the co-borrower of the loan provided by the Bank in place of your brother.
Your wife can be substituted as a co -borrower only with the permission of bank. A property that is under mortgaged cannot be alienated without the prior consent of the mortgagee. So your brother has to apply to the bank to allow your wife to be substituted in his place.
If the bank agrees to release yor brother from the loan and shall include your wife as co-borrower, you may go ahead with your proposal.
But it can be a registered gift deed in favor your wife to be executed by your brother and not a relinquishment deed. He cannot relinquish his rights in the self acquired property to a third party, he can execute a registered gift deed only.