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Property gifted to Mother
1 year ago
Hello,
1. I have a home loan on a property (apartment) and would like to gift it to my mother, but continue to have the home loan in my name. Is this possible? What is the process to execute this kind of a gift deed? Expected charges?
Also, what happens to tax liability on income from rental, after the gift deed is executed.
A.Your query is not clear and cloudy in nature.
Untill and unless title of a property is free from all kinds of encumbrance(loan, mortgage etc), the title of the said property cannot be transferred by sale, gift or any other way to anybody.
your other queries are irrelevant and uncalled for in view of the above clarification.
Untill and unless title of a property is free from all kinds of encumbrance(loan, mortgage etc), the title of the said property cannot be transferred by sale, gift or any other way to anybody.
your other queries are irrelevant and uncalled for in view of the above clarification.
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A.Hello,
As per Section 128 of the Transfer of Property Act, a donor can gift a mortgaged property. However, the donee (receiver of the gift) is personally liable for all the debts and liabilities that are associated with that property.
When you take a home loan, your lender/banker creates a Mortgage Lien on the property. A mortgage lien is a form of conditional ownership of your property claimed by your home loan provider. A lien is the legal right of a creditor to sell the collateral property of a debtor who fails to meet the obligations of a loan contract.
So, ideally when you are gifting a mortgaged property, you have to intimate your Lender about your decision and take their consent. If you take a written consent from your lender then Gift becomes a valid one.
In case, you do not take consent from your lender then this may lead to a legal litigation. Gift Deed executed by you can then be revoked through court of law by your lender.
As per Section 128 of the Transfer of Property Act, a donor can gift a mortgaged property. However, the donee (receiver of the gift) is personally liable for all the debts and liabilities that are associated with that property.
When you take a home loan, your lender/banker creates a Mortgage Lien on the property. A mortgage lien is a form of conditional ownership of your property claimed by your home loan provider. A lien is the legal right of a creditor to sell the collateral property of a debtor who fails to meet the obligations of a loan contract.
So, ideally when you are gifting a mortgaged property, you have to intimate your Lender about your decision and take their consent. If you take a written consent from your lender then Gift becomes a valid one.
In case, you do not take consent from your lender then this may lead to a legal litigation. Gift Deed executed by you can then be revoked through court of law by your lender.
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