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Real Estate » Query Zone

Posted at: Mar 18, 2017, 12:45 AM; last updated: Mar 18, 2017, 12:45 AM (IST)TAX TIPS

What is the legal procedure to transfer the house in our names?

S. C. Vasudeva

Q. My father made a registered Will which states that my mother will be the sole owner of whole property which includes a double-storey house in Chandigarh after his death but she can’t sell the property without the consent of her daughters (me and my sister). The Will further states that after the death of our mother the ground floor will be inherited by one daughter ( by name ) and the 1st floor will go to second daughter (by name). Rest of the property will be shared on 50  per cent basis .

My father died in February, 2004, but we didn’t get the property transferred in the name of our mother who expired in October 2015.  We have already occupied the house floor wise. My querry is:

What is the legal procedure to transfer the house in our names? 

Can it be transferred floor wise as stated in the Will? 

— Parveen Sharma

A. On the basis of the facts given in the query it would be advisable to get the Will probated whereby both of you are confirmed by the court as legal heirs of your mother. On the basis of such a probate you will have to approach the revenue authorities for transferring the ownership in the name of both the sisters. You may please execute a family arrangement between two of you to share the house in the manner desired by you. This family arrangement can be filed with the authorities for the levy of house tax, electricity charges, water charges, etc.

Ownership issues for legal heir

Q.My father registered a Will in favour of one of my sisters who decided not to marry in 2005 in Sub Registrar, Bhiwani (Haryana) . Our father expired in 2008. My sister was given a residential house which is being used by her and my mother. We did the mutation (Virasat intekal) by submitting the copy of the Will with the Municipal Council (MC). The MC provided a revenue extract changing the name of the owner as per the Will. However, it says at the bottom that this cannot be used for the sale/purchase. The original sale deed was in Urdu dated 1959.

Subsequently, in 2015 my sister wanted to rebuild the house and take a loan from bank for this. However, the bank is asking for the sale deed in her name. My queries are:

Her ownership is absolute and backed by our father’s Will. Then is it necessary to make a conveyance deed/sale deed? 

How can we make a sale deed in her favour? Would it cost us Stamp Duty as it is a Will execution-based transfer in blood relation.

We have a certified copy of the sale deed and the original sale deed is in Urdu. How can we get the sale deed in English/Hindi for the sake of readability. We did make a translation of the same on a plain paper. It took two months. What could be easier way?

The mutation in MC record statement is in contravention of the basic purpose of mutation. How we can circumvent this situation?  

— Narender Kumar

A.Your queries are replied here under:

There cannot be a conveyance deed / sale deed in your sister’s name as she has inherited the house from her father.

There is no  necessity for having a sale deed in her name. The original sale deed executed in Urdu and a certified translated copy thereof in English along with the documents of mutation of the house in the name of your sister should suffice for the purposes of a bank loan.  However, in case the bank/housing finance company does not agree, you may have to approach the court for getting the Will probated in her name. This will confirm the ownership of the property in her name

The translation of the sale deed shall be done by an expert. You should be able to  find such an expert from an Oath Commissioner’s or Notary’s office. This copy can be got certified from the Notary or any other persons as suggested by the bank / housing finance company.

Normally the revenue authorities do write while mutating the property that the mutation so made does not confirm the ownership. This is because the ownership is legally transferred either through a succession certificate or a probated Will.

Documents needed for a foolproof deal

Q. What documents should one acquire from the builder/ seller while purchasing a flat in Punjab for a water-tight transaction? Please shed light on the same with an explanation of the involvement of CC/OC/Conveyance/Fard-Khata-Khasra.

Secondly, in case of an outstanding loan on the property, what are the precautions that one should take? Is it advisable to directly pay off (to the bank) someone’s loan?

— J.J Singh

A.Your queries are replied here under:

The documents required from the builder at the time of booking a flat or purchase of a flat would be different from those which are required from a person who is selling the constructed flat in a multi-storeyed building or in a separate bungalow.  The documents required from a seller would also differ according to the nature of the building in which the flat is situated. You may, therefore, give complete particulars with regard to the intended purchase of a flat so that you can be advised about the documents required from the seller at the time of purchase of the flat.

In case there is an outstanding loan against the property, it is possible to pay the loan directly to the bank subject to the fact that there is a tripartite agreement and the bank is also made a party to such an agreement. It is also possible to have a document whereby the bank becomes a confirming party for the receipt of the loan directly from the buyer and the consideration payable to the seller gets reduced to the extent of the amount of loan paid to the bank. Normally, in such a case the sale deed is executed for the gross amount of consideration, part of which is paid to the bank and the balance amount is paid to the seller. However in view of the provisions of Section 194IA of the Income Tax Act 1961 (The Act) which require deduction of tax at source by the buyer, where the immovable property valued at Rs 50 lakh or more is being purchased, it would be advisable that the amount of consideration is paid to the seller who thereafter makes the payments to the bank as tax will have to be deducted by the buyer from the gross amount of consideration.

Adjusting change in interest rates

Q. I am a retired Chief Engineer and I have taken a joint home loan from PNB HFL with my son who is serving in a PSU. The loan is on a floating interest rate. The company itself lowered ROI from 10.25 per cent to 10.10 per cent but for the further cut in rate of interest announced by government/ banks, this company has demanded Rs 7,500 extra with  their prescribed agreement to be signed by us. My queries are:

The company must adjust the rate of interest  itself as applicable without any extra charges  and agreement.

For any changes in EMI or bank account on our request the company is charging extra Rs 500 plus ST which too seems to be  unethical.

We have taken the possession of the house. Please advise me in the matter of shifting of the loan to some other better source. 

— T K Gupta

A. A bank or a housing finance company charges interest according to the policy framed by its Board.  It is not possible to comment with regard to a policy matter as well as  with regard to ‘ethics’ involved for charge of service tax according to company’s policy.  State Bank of India and a few other private banks have advertised lower rate of interest for granting loans for the purchase or construction of residential house.  You may, therefore, get in touch with State Bank of India or private banks like HDFC, ICICI, Axis bank etc; for the purpose of seeking loan at a lower rate of interest as against 10.10 per cent demanded by PNB Housing Finance Limited.

Seek refund in consumer court

Q. I had booked a one BHK apartment in Wave Estate Mohali in September 2013. As per contract, possession was to be handed over in 2016. I have chosen subvention payment plan. Now the company has extended the possession date to 2018. I have given Rs 5 lakh at the time of booking and about Rs 4 lakh as service tax charges on each installment given by bank. As of now there has been no construction work for the past three months. Wave estate officials are not giving any response regarding the exact date of completion of the project. I want my money back. What should I do?

— Amrinder Shergill

A.You have no other alternative but to approach the Consumer Court for seeking refund of the money paid to the builder. 

email your queries to realestate@tribunemail.com

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