Buying a plot and building house by cousins
9 months ago
Me and my cousin are planning to buy a plot (30*50) and construct multistorey house, basement parking, 1 & 2 floor individual 3hbk and 3rd floor 2 rooms. We are planning to jointly buy land and perform a partian deed and then construct. Can you please advise on,
1. What implication will have if we do so?
2. Can we able to get housing loan for both land and construction? If not what would be the better alternate option?
3. How do we perform sale deed in this case? Can we resister at a time or separate registration is needed?
Appreciate your suggestions.
Thanks.
A.Dear client,
Implications of Joint Ownership and Partition Deed:
a. Joint ownership: Buying the plot jointly with your cousin means that both of you will be co-owners of the property. Each co-owner will have an undivided share in the property, typically based on the percentage of investment made. It is crucial to have a clear understanding of each co-owner's rights and responsibilities regarding the property.
b. Partition Deed: A partition deed is a legal document that allows co-owners to divide the property or agree on the specific portions each will own. Since you both plan to construct individual floors with separate ownership, a partition deed can help clarify the division of the property.
c. Tax implications: Owning and transferring the property may have tax implications, including stamp duty, capital gains tax, and other taxes. It is essential to consult with a tax advisor to understand the tax implications of joint ownership and property division.
Housing Loan for Land and Construction:
a. Land Loan: Banks and financial institutions generally offer land loans to finance the purchase of a plot. Land loans have different terms and interest rates compared to home loans, and the loan-to-value ratio may be lower.
b. Construction Loan: Once you have the plot and a clear partition deed, you can apply for a construction loan to finance the building of the multistory house. The construction loan is disbursed in stages as per the progress of construction.
Sale Deed and Registration:
a. Sale Deed for Joint Purchase: Initially, when you jointly purchase the plot, a sale deed will be executed between the seller and both of you as buyers. The sale deed will document the transfer of ownership rights to both co-owners.
b. Partition Deed: After the construction is complete and you decide to divide the property, a partition deed will be executed between you and your cousin. The partition deed will specify the share of the property each co-owner will hold.
c. Separate Registrations: The sale deed and the partition deed can be registered separately. The sale deed for the joint purchase will be registered when you buy the plot, and the partition deed will be registered when you divide the property after construction.
It is essential to work with a qualified lawyer and a reliable financial advisor to navigate through the legal and financial aspects of joint ownership, partition, and obtaining housing loans. Each case is unique, and professional advice tailored to your specific situation is crucial to make informed decisions and protect your interests.
Implications of Joint Ownership and Partition Deed:
a. Joint ownership: Buying the plot jointly with your cousin means that both of you will be co-owners of the property. Each co-owner will have an undivided share in the property, typically based on the percentage of investment made. It is crucial to have a clear understanding of each co-owner's rights and responsibilities regarding the property.
b. Partition Deed: A partition deed is a legal document that allows co-owners to divide the property or agree on the specific portions each will own. Since you both plan to construct individual floors with separate ownership, a partition deed can help clarify the division of the property.
c. Tax implications: Owning and transferring the property may have tax implications, including stamp duty, capital gains tax, and other taxes. It is essential to consult with a tax advisor to understand the tax implications of joint ownership and property division.
Housing Loan for Land and Construction:
a. Land Loan: Banks and financial institutions generally offer land loans to finance the purchase of a plot. Land loans have different terms and interest rates compared to home loans, and the loan-to-value ratio may be lower.
b. Construction Loan: Once you have the plot and a clear partition deed, you can apply for a construction loan to finance the building of the multistory house. The construction loan is disbursed in stages as per the progress of construction.
Sale Deed and Registration:
a. Sale Deed for Joint Purchase: Initially, when you jointly purchase the plot, a sale deed will be executed between the seller and both of you as buyers. The sale deed will document the transfer of ownership rights to both co-owners.
b. Partition Deed: After the construction is complete and you decide to divide the property, a partition deed will be executed between you and your cousin. The partition deed will specify the share of the property each co-owner will hold.
c. Separate Registrations: The sale deed and the partition deed can be registered separately. The sale deed for the joint purchase will be registered when you buy the plot, and the partition deed will be registered when you divide the property after construction.
It is essential to work with a qualified lawyer and a reliable financial advisor to navigate through the legal and financial aspects of joint ownership, partition, and obtaining housing loans. Each case is unique, and professional advice tailored to your specific situation is crucial to make informed decisions and protect your interests.
Helpful
Helpful
Share
Read Related Answers
Two DTCP plots with single gift deed
Dear Client,
Unless the original doner and the original donee of the gift deed execute and register a rectification deed or supplementary deed bifurcating each plot of land in the Schedule of the Prop...
Real estate agent harrassing for brokerage
Dear sir,
In many cities such illegal practice is there. You approach police and they will teach them a lesson. You need not give any brokerage.
To landlord - I am staying in this house from 6 years
Dear Client,
You can send a legal notice to the landlord and demand to repay the security deposit. In case of inaction from the landlord, you can file a suit under Order 37 of CPC before a jurisdictio...
Addition of Wife Name in new flat sale
Dear Client,
An owner who wants to add a co-owner to his property will have to do so by way of creating a new deed altogether mentioning the ratio or portion of the ownership in the property. This new...
Real estate -rera
Dear Client,
As the housing project is not registered under the RERA, you have to file a complaint against the real estate company and its directors before the District Consumer Commission under Sec.3...
Read Blogs on Real Estate
Real Estate Lawyers
Find Lawyers by Location
