Legal Corner » Mortgage

What is the percentage of stamp duty that is payable for the mortgage loan in the bank?

atoneplace — Sat, 05 Nov 2011 07:13:18 +0000

Question asked by Mr. Suresh from India:
What is the percentage of stamp duty that is payable for the mortgage loan in the bank?
Thanks
Suresh
Veena Answers:
This is dependent on the nature of mortgage and differs from state to state.
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Can a house be sold without the possession letter?

atoneplace — Sat, 01 Oct 2011 06:02:40 +0000

Question asked by Mr. Odell Aguiar from India:
I bought a house in 2006. I have a bank loan on the house and have paid it off in full and received all the original documents as of Aug’ 2010 However, the builder has not given me a copy of the possession letter and is demanding more money. Can I sell my house without the possession letter?
Thanks
Odell Aguiar

Veena Answers:
We are of the view that in the event all your loan documents are cleared and you are in possession of the original documents, you can convey the property to third parties even in the absence of a possession letter from the builder. Only if the property is allotted by a society, allotment letter and possession letter are mandatory.
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Which is better remedy for breach of contract of mutuum with real estate mortgage?

atoneplace — Sat, 24 Sep 2011 08:39:34 +0000

Question asked by Mr. Vernalyn Colas:
Which is better remedy for breach of contract of mutuum with real estate mortgage- ordinary action for sum of money or judicial foreclosure of the real estate mortgage?
Thanks
Vernalyn Colas
Vatsala Answers:
You should sue for foreclosure of the real estate mortgage.
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What is the procedure for mutation of property purchased from a bank?

atoneplace — Tue, 03 May 2011 06:59:28 +0000

Question asked by Mr. D.K. Dutta from India:
What is the procedure for mutation of property purchased from bank under sale certificate in auction? The Property has been acquired by bank from loan defaulters under surface act.
Thanks
D.K. Dutta
Vatsala Answers:
The procedure is the same as normal change of Khata. The sale deed executed by the bank in your favor is enough to get the mutation done on payment of requisite fees and filling up the application form.
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Is it correct to transfer the pending loan amount to owner’s account before registration of a property?

atoneplace — Fri, 04 Mar 2011 10:17:02 +0000

Question asked by Mr. Murali Ramaswamy from Tamil Nadu, India:
I am planning to buy an apartment from a person who has pending loan with ICICI bank. He is asking me to pay the outstanding amount to his personal account further to which he will close the loan with the bank. Afterwards he will make registration of the flat to me. Is this the correct way or kindly advice the procedure for this deal?
Thanks
Murali Ramaswamy
Vatsala Answers:
You can cover the transaction by an agreement before you pay the money. This is sometime done to avoid the foreclosure fees to the bank. If the amount is huge, you can register the agreement of sale so that the seller can sell the property only to you and no one else.
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Can one buy converted agricultural land for residential purpose?

atoneplace — Tue, 20 Jul 2010 11:58:24 +0000

Question asked by Kashi from Bangalore, India:
Dear Sir/Madam, Hi, I am planning to buy a site in Bangalore and the one I am about to buy is a agricultural land. The land owner has converted that agricultural land to sites. But the main worry for me is that – this conversion its not approved by any authority. Can you please let me know whether i can buy such lands? Can you please also let me know after purchasing that land is there any procedure that i can get that approved for house construction?
Also can you please give me a checklist for the list of documents required to buy these revenue sites.
Thanks
Kashi
Vatsala Answers:
No, it will not be possible for you to register a site on unconverted land unless it comes within BBMP limits and is regularized by the Sakrama Scheme. Even if it is possible for you to somehow get it registered, you will find it difficult to procure bank loans. The house itself can be constructed with local Panchayat approval. The documents required for title scrutiny are R.T.C., parent deeds, Mutation certificate, layout plan, contracts between builder and land owner, relevant family tree, tax paid receipt, encumbrance certificate, etc. This is a general list and the requirements will vary from case to case.
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Can loan records for a property be changed by the bank if the divorce proceedings of the property owners is on?

atoneplace — Tue, 27 Oct 2009 07:45:42 +0000

Question asked by Pratibha from India:
Hello, my husband and I are filing for divorce soon. We have an apartment and a plot in joint name which was registered under both our names. The housing loan has my husband as the primary borrower and me as the secondary borrower.
As a result of a mutual agreement the apartment will be kept by me and plot by my husband. We need to make changes in the ownership documents. Also the Bank told me that the loan can’t be shifted to my individual name until the divorce is complete.
My question is – What is the procedure for initiating the change? And can the bank change loan records only after the divorce is complete?
Regards,
Pratibha
Vatsala Answers:
You can get a decree from the court showing that the apartment has been awarded to your name and the plot to your ex-husband’s name. Thereafter the bank will change the records. However you could occupy the apartment now and can even sell it and appropriate the proceedings with your husband as the co-seller. The recitals in the sale deed should show that he has expressly permitted you to receive the entire money.
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What is the procedure for re-registering the sale agreement to make spouse as co-owner?

atoneplace — Tue, 27 Oct 2009 06:46:48 +0000

Question asked by Srijith Menon from Bangalore, India:
Hi, I have purchased a flat in 2006 Nov taking a loan from ICICI bank where my wife is a co-applicant. But the registration was done only on my name since my wife was traveling overseas that time. Now from your columns I understand that to avail the tax benefit the co-applicant has to be the co-owner also. Can you please tell me the formalities & normal taxation / charges included in this procedure of re registering the sale agreement to make wife as the co-owner along with me. Since the original sale agreement is with the bank how do I retrieve it, will the bank allow me to take it out for doing this transaction or with out the original sale agreement, I can get this done (I have the duplicate copy of the sale agreement duly stamped & certified by the registrar with me)
Request you to clarify this so that both of us can avail the tax benefits.
Regards
Srijith Menon
Vatsala Answers:
There are normally two documents when loans are disbursed. One is the sale agreement and the other is the sale deed. In your case it is not clear which document is with the bank. Normally a sale agreement precedes a sale deed and the agreement is not usually registered but the sale deed has to be registered. If you have just deposited the agreement, it is easy to get the original out of the bank and execute it again jointly with you wife. If it is the sale deed, you have to execute another registered gift deed gifting half the property to your wife. This will supersede the earlier deed (which can remain with the bank) and you both will become equal owners. Please take the permission of the bank before doing any of this.Vatsala
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Will I become party to evasion of stamp duty?

atoneplace — Sat, 24 Oct 2009 08:20:39 +0000

Question asked by Anonymous:

Hi I have a question to ask. I bought a house from Builder in Hyderabad in August 2006. The agreement of sale was for 33 lakhs. The registry was done at a lower cost 18 lakhs in august 2006 itself. The flat was under construction that time. I also took a loan of 27 lakhs from the bank for it. Now I am selling the house for 62 lakhs. The buyer is taking over my loan. The bank will give me a difference between loan amount sanctioned and selling price i.e. 30 lacs (Cheque) and the buyer will give me 5 lacs. So in total I am getting 35 lakhs in my account. Now the questions are:

1. The Buyer wants to get the registry of the flat done at 25 lacs. How is that possible as he is giving everything in white? How will I explain to income tax authorities as to where this 35 lac came from when I sold the house for 25 lacs (as per the registry) and where did I get the money (27 lacs) for prepayment of loan. Will I become party to evasion of stamp duty in this case? (There are two agreements, one is agreement of sale which shows the correct price on which the bank finances and the other is the sale deed which shows the amount in the registry and is registered)

2. What documents do IT authorities refer when calculating Capital Gains?

3. The builder is the agent through which I am reselling the flat. And I am paying him a commission of 100/- sq. ft. Now, I got to know that he is fooling the new customer by collecting service tax and VAT from him which is not applicable on Resale Flat. And he will keep that amount with him. Now the question is if the new customer some day knows that Service Tax and VAT was collected from him and is not applicable then can I be in trouble as the builder is just the agent, I am the Seller of the flat? What should I do?

Thanks in advance

Vatsala Answers:

1. The agreement of sale showing the full amount will protect you against income tax queries, despite the lesser value in the sale deed. You can show the extra amount towards fittings, furniture, right of use of car park, right of use of common amenities, deposits kept with builder for water, electricity and maintenance charges.

2. It is open to the IT authorities to rely on the sale agreement (if it is deposited with the bank) and the sale deed.

3. It is not correct for the builder to collect VAT and service tax again from the new purchaser. It should be accounted for under brokerage or some other account. In any case you need not collect it in your name. Vatsala

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What is the basis of loan interest calculation?

atoneplace — Thu, 08 Oct 2009 06:37:15 +0000

Question asked by Mr. Sandeep Bhat:

Hi, I had earlier availed a loan from LIC Housing Finance and in addition to EMI’s I have also been regularly paying additional amounts for speedy closure of the loan.
My problem is that in their statements LIC still shows interest contributions on the EMI based expected Loan Outstanding without considering reduction on account of additional prepayments.
I am presently outside India and am not able to discuss the issue directly with them. My wife however did visit them but wasn’t able to get any resolution. The difference is building up to be considerable and as such need your guidance.
Regards,
Sandeep Bhat

Vatsala Answers:

A detailed understanding of calculating reducing loan balance is required. In the absence of this clarity, it is not possible to intervene. Vatsala

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