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Ask Mint | Co-own your house even if it’s on loan

Ask Mint | Co-own your house even if it’s on loan
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First Published: Mon, Dec 14 2009. 09 09 PM IST

Updated: Mon, Dec 14 2009. 09 09 PM IST
My husband took a housing loan to buy a house before our marriage. He was the sole owner and sole applicant for the loan. After marriage, even I started paying some of the EMIs. Now, I want to formalize this by adding my name to the loan agreement so that I can also avail tax benefits on the loan repaid. Is it possible to add my name now?
—Sunaina Aggarwal
Your question has two parts to it. One is you becoming a joint owner and the other is you becoming a joint applicant to the loan so that you can avail tax benefits.
To make you the joint owner of the house, your husband may relinquish a part of his equity in the house in your favour by executing a relinquishment deed, which is adequately stamped and registered. To do this, your husband will first need to approach the financial institution and inform it about the intention of changing the ownership status of the property financed by it. This will also lead to your credit appraisal. After your credit appraisal is done, the necessary loan documentation is completed and the original relinquishment deed is deposited with the financial institution, you may be added as a co-applicant to the loan. Simultaneously, you will also need to intimate the change of ownership status to the builder/society to enable them to change their records and give a written confirmation to the financial institution, acknowledging the same. For the question on tax benefit, you are advised to consult a tax expert.
My mother and my sister purchased a property and shared it equally with individual title deeds. I inherited my mother’s share through my mother’s Will. Now I am interested in buying my sister’s share, too, who has lost the original title deed. But she got a certified copy after giving a notification in the local newspaper stating the original title deed is missing. Can I buy the property? Will any bank or housing loan institution give me loan for buying my sister’s property?
—Manohar Kulkarni
A housing loan can be recommended subject to your credit appraisal, prima facie, based on three assumptions. One, your mother and sister have purchased the residential property vide a registered deed. Two, your sister would vide a registered relinquishment deed relinquish her rights in your favour. Three, you are in possession of all original title deeds, necessary permission—and they are all in order—in respect of the property to be financed and you can create a security in favour of the lender in respect of the property to be financed then.
To enable us to reply to your query fully, we will need to peruse the concerned property papers. It would involve an exhaustive examination of all the documents. I suggest you must visit any lender you are comfortable with to explore further.
Renu Sud Karnad is joint managing director, HDFC
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First Published: Mon, Dec 14 2009. 09 09 PM IST