Ensuring share in the property
My Sister-in-law and I purchased a property in 2014. The property is in Bangalore and it is a one-story individual house. My family stays in the ground floor while my SIL's family stay in the 1st floor. I am self-employed and my SIL is salaried. Since I didn't have any income proof, we got a home loan in my SIL's name and the property was also registered in her name. The property value is 37 Lakhs. We paid a 14 Lakhs down payment and took a 23 Lakh home loan from DFHL. I have paid 7 lakhs out of the down payment and also transfer 50% of the EMI every month to my SIL's Account for the last 3 years. My name is not included in the property papers or in the home loan. My mother is a joint applicant in the loan but her name is not included in the property papers. I want my name to be included in the property papers to avoid any problems in future. How do I go about this? I am willing to take a loan for my share of the remaining loan amount (about 10 Lakhs). My SIL is willing to sign to settle this issue amicably. How do I proceed? What options are available for me, with the least amount of cost / hassle ? Please advise on the course of action I must undertake to ensure my share in the property.
Execute and register a Deed of rectification to rectify the mistake in the original/principal sale deed of not inserting your name in the sale deed. For this purpose all the parties in the original sale deed should execute and come for registration of the deed of rectification inlcuding yourself.
The other option is ask your SIL to execute and register a Gift Deed, gifting you the 50% undivided share in the property to yourself.
Consult a lawyer for the same
The property gets transferred from one to another by way of a conveyance deed. Since, one relative is transfering the title of the property to another – the best way to do it is by the way of a Gift deed.
Family members as per section 28 of the Karnataka Stamp Act,1957 include only – father, mother, husband, wife, son, daughter, daughter-in-law, brother, sister and grandchildren. Therefore, while getting the title of the property back from the sister-in-law, it would be advisable to get it gifted in the name of your wife and not directly to you. Doing this will make you fall under the nominal fee bracket of the Karnataka Stamp Act.
The registration of the aforesaid Gift deed under law finds place in Section 17 of The Registration Act, 1908.
When the Donee is not a family member then 8% of the market value of the property + an additional stamp duty of 5% of the stamp duty + surcharge to the tune of 2% of the stamp duty + cess would be applicable while conveyancing the said property. Whereas when the Donee is a family member, in that case :-
- A fixed Stamp duty of Rs. 1000/-
- An additional stamp duty of 5% on the above 1000/- i.e. Rs.50/-
- A surcharge of 2% on 1000/- i.e. Rs. 20/-
- A registration fee amount of Rs. 500.
It all makes it a grand total of Rs.1570/-.
Subsequent to this transfer of the title deed of the said property, you need to make an application to the concerned bank – seeking their permission – to get it transferred in your name thereafter.
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