How are properties of mentally challenged people managed?
According to the Mental Health Act, managers can be appointed to take care of such properties
Mental disorders sometimes affect people’s decision-making capacities. A person of unsound mind is not considered to be competent enough to enter into a contract because he is incapable of understanding the transaction and its probable consequences. A contract of sale like any other contract would be invalid if the consent of either party is given by a person of unsound mind. There have been instances when people have been interested in buying properties that belonged to a person who was mentally challenged or incapacitated. So, what is the status of such a property and t he person who would be entitled to enter into a contract for the sale of the property which is held in the name of a person suffering from mental illness? The Mental Health Act, 1987, makes provisions with respect to taking care of the estate of a person who is mentally challenged - someone who needs treatment for his or her mental disorder. It is important to clarify here that a mentally ill person does not in any way mean or include a mentally retarded person.
Where an alleged mentally challenged person owns property, any of his relatives may come forward with an application to the district court for holding an inquiry regarding his mental condition for the appointment of someone to manage his or her property. On the receipt of such an application, the concerned district court within the local limits of whose jurisdiction the mentally ill person resides, takes appropriate steps for initiating a judicial inquiry regarding the mental condition of the alleged mentally challenged person.
After conducting such an investigation, in case the district court or the collector of the district confirms that the person is mentally challenged and incapable of managing the properties, it can appoint a suitable person as a manager for the property in question.
The manager appointed has t he same powers with regard to the management of the property of the mentally challenged owner would have enjoyed. The manager has the power to execute conveyance on behalf of the owner after obtaining prior permission of the court. In case the manager wishes to execute mortgage or lease of such property for more than five years, then he has to obtain an order from the court before signing the mortgage deed/lease deed in lieu of the mentally ill person.
In a situation, where a person enters into a contract to sell the property owned by him and is later unable to fulfil the contract owing to his mental illness; the court may direct the anyone enters into any contract with respect to the property owned by a person suffering from mental illness.
Yes, you can claim HRA exemption from your salary on the rent being paid by you to your mother. Make sure that the rent is paid every month just as it would be if it were a non-relative landlord. The rent would be taxable in case of your mother. You cannot get any tax deduction on the repayment made on the home loan since the property is not owned by you.
I am looking to purchase a 3BHK property in NCR. There are three options available to me: full advance payment plan, construction-linked plan and subvention plan with no interest for two years. What are the advantages? —Puran Singh
I wish to shift my home loan to another bank. What are the advantages of shifting the loan?
—Sabhyata Gupta You should shift your loan only if the new bank is offering you lower rates of interest and the cost of shifting (in this case it is the 0.20% mortgage fees plus a small administrative charge) is enough to justify the benefit. Where floating or fixed rates are concerned, in the current environment when interest rates are expected to go down, it makes no sense to lock into a fixed rate.
I had taken a home loan worth ₹ 7 lakh from a bank at a floating rate of interest 10.75%. The bank had promised rebate if I paid up some amount initially. Should I do it?
—Suneet Shah In India unfortunately floating rate loans mean that the rate floats upwards when interest rates rise but they don’t go down when interest rates drop. Under pressure from the market lenders “allow” you to shift to the new lower floating rate on payment of a fees. So by paying about 0.28% of the outstanding loan amount you should be able to shift to the new rate of 9.90%.