What is the procedure for re-registering the sale agreement to make spouse as co-owner?
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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