I plan to construct a house on an ancestral plot. The ownership is in the name of my father. I intend to pay monthly EMIs. I have a brother and a sister. Will the bank ask for any documents or signatures from my brother or sister?
– Rajiv Saxena Since you intend to take the loan and the property belongs to your father, he will have to be the applicant for the loan with you as the co-applicant. If you are not the co-owner of the said property, you will not be able to claim any tax benefits on the loan taken for this purpose. The bank may ask for a declaration from your brother and sister stating they have no interest in the property if, as per the inheritance laws, they are entitled to a share in the property after the death of your father. The ownership interest of
I have purchased a flat as an investment and acquired a loan. I’ve been paying EMIs regularly. Can I sell the flat while the loan repayment process is still on?
– Aayush Tripathi You cannot sell the flat unless you repay the existing loan. However, the bank may grant you some time to pay the amount. In such a case, the bank will provide you with a letter mentioning the amount on payment of which you will be given documents of your property. This amount stated will be as of a future date which will include the interest till that date. As part of your sale agreement with a new buyer you will be required to hand over the original documents of your property. However, in case the buyer also wants to take a loan for purchase of this property, both the banks can agree on modalities to be followed to enable the transaction to go through smoothly.