We have a property(independent) in Hubli,Karnataka, My Dad and Mom are co-owners , My Dad expired in 2009 , Now we want to sell the house and buy a house in Pune
Can my mother see it directly or she has to transfer in her own name first ? What are Capital gai tax implications . My mom is homemaker has no other income
We are 3 siblings , Myself and two sisters, Will any siblings have any objections as per law to stop the sale
Asked in Property Law from Hubli Dharwad, Karnataka
Hi, As the property is the joint owned by your parents after the demise of your father all the legal heirs have right over 50% of the property so your mother and all the children has to execute sale deed in favour of prospective purchaser.
Since your mother is also a co-owner and after the death of her husband/father, she can directly get the property transferred into her name by producing a copy of the death certificate of husband, along with this she will have to submit NOC from the other legal heirs in order for the authorities to transfer the immovable property into her sole name.
Capital gains will be from the date of acquisition upto the date of sale, she being the co-purchaser. Since you are planning to sell one property and invest the sale proceeds into another property, the capital gains tax will not be attracted in your case.
After the property revenue records are transferred into her name and with the NOC from her children she alone can sell the property, in the sale deed however the buyer might take your signatures as consenting witnesses to safe guard his investment.
1) on father demise your father 50 per cent share will devlove on your mother and 3 children
2)you and your siblings can execute gift deed or relinquishment deed for transfer of your father share in mother name
3)after mutation is done your mother can sell the property
4)if your siblings are not willing to relinquish their interest or sell the property it would be difficult for your mother to sell the property as purchaser would insist on consent of all legal heirs
1. After the demise of your father his share devolved through succession on his heirs i.e his widow and children. Before selling the property your mother and her children including you should apply for mutation to be sanctioned in your favour. Thereafter, all of you can execute the sale deed in favour of the prospective buyer.
2. You can claim tax exemption on the long-term capital gain on the sale of a house. To avail of this exemption, you must use the entire profit to either buy another house within two years or construct one in three years. If you had already bought a second house within a year before selling the first one, you could still avail of the tax exemption. Such capital gain exemption is reversed and the amount taxed as capital gain if the new property is sold within three years of the date of purchase/construction.
Your mother cannot sell the entire property on her own because half share in the property is lying in your deceased father's name.
His share of property shall devolve on all his legal heirs equally in which your mother too can have a share.
However, without the other legal heirs relinquish their rights in the property by executing a registered release deed, your mother cannot become an absolute owner of the entire property.
Thus all the other legal heirs of your father have to execute a registered release deed in your mother after which your mother can sell the property to any person of her choice or desire.
To claim exemption under long term capital gains, she has to invest the entire money in any other immovable property within two years fo sale of this property.
The question of any sibling can object the sale shall be known to you only.
The legal procedures to be followed in this regard has been explained.