Property renovation can be done without permission of co-owner
Floor-wise ownership allows occupants to make changes in dwellings without co-owners’ interference
Exorbitant rise i n property prices in the past decade have led to a substant i al rise i n fl oor wise sale and purchase transactions. Popular trends in recent times have seen one family or owner occupying one floor in a multistorey house on a single residential plot. This floor wise ownership of an immovable property constructed on a single plot of land has given rise to vari
ous questions of law and the Interest on housing loan paid for the period prior to May 2016 ie February 2013 till March 2016 will be considered as interest paid during preconstruction period. Once the property is constructed. the amount can be claimed as deduction in five equal installments starting from the financial year 2016-2017 till the financial year 20212022.
Secondly, as per the Income Tax Act, for claiming deduction of interest on EMIs paid during the financial year 2016-17, the loan should courts of law have often been approached on various occasions to clarify matters. One such question that the Delhi High Court dealt with was whether the owner of a floor of a property required permission from owners of other floor(s) of the same property to carry out additional construction.
The petitioner who was the owner of the second floor and the entire terrace of a residential property had submitted an application with New Delhi Municipal Corporation (NDMC) for the sanction of plans to carry out additions/alteration works on the terrace of the second floor. The plans were returned by NDMC principally on the ground that the same were not signed by other co-owners of the property (ie owners of other floors. Aggrieved by NDMC’s response, the petitioner approached Delhi HC. He contented that there was no provision in law whereby the signatures of owners of other floors weare required as a precondition for the grant of sanction for development of one’s own property. The contention of NDMC was that the petitioner had 30% undivided share in the property in question and the plot of land had not been subdivided in the records of land and development office.The application for sanction of any construc- have been taken after April 1999 and construction should have been completed within five years from the end of financial year in which the capital was borrowed. In your case, since you qualify both these conditions, you will be eligible for deduction of interest on EMIs paid during the financial year 2016-17.
The amount for which deduction can be claimed during the financial year 2016- 2017 will be restricted to ₹ 2 lakh. This deduction will be in addition to the pre-construction period interest and tion was required to be signed by all co-owners.
The Delhi HC upheld a previous judgment of the same court that once the property was segregated into different portions and mutated accordingly, there was no requirement of all the coowners to sign the building plans. They would only be needed to sign in case the plot and the building were both co-owned. The separation of interest of the different co-owners was recognised by the respondent by mutation of the different portions in individual names of different persons. The state of an individual owner could not be dependent on the signature of a person who happened to be the owner of a different portion of the building. Thus, there was no requirement of signatures of all the co-owners.
The Delhi HC also examined the provisions of the Building Bye-laws, 1983, and said these did not mandate that consent of other owners of other portions of property be obtained for carrying out any construction. It was observed that the person intending to do the construction submit plans to be signed by the owner or an architect or documents of ownership be provided.
Delhi HC also observed that in such cases where the property was separately registered and will be available for all future years till the loan is repaid.
My children are of Indian origin have taken German citizenship after marriage. Can I gift my property to them?
– Lavleen Kaur I am assuming you are an Indian citizen resident in India and are talking of gifting property located in India to your children who are not citizens of India. Persons of Indian origin such as your children can definitely own property in India provided it is not agricultural land or plantation and you can gift it recorded in the revenue records, the relevant ownership documents would be taken as evidence of title of the portion of the property on which construction was to be done. Therefore, Delhi HC said it was disputed that the second floor of the property in question and the terrace above the second floor were registered in the name of the petitioner in the revenue records. The construction proposed to be done by the petitioner was clearly on his portion of property in question which was duly recorded in the petitioner’s name. Therefore, there would be no occasion for NDMC to insist that the petitioner obtain a NOC from the owners of the other floors.
In conclusion, the parties owning a single plot may demarcate their shares and if the ownership of demarcated shares is accepted by NDMC, there would be no requirement for the owners of demarcated shares to seek an NOC from other co-owners to make changes in the property. to them. Gift of immoveable property will be valid only when adequately stamped and registered with the registrar. Many Indian states have nominal or low stamp duties for gifts to children. Please consult a lawyer specialising in property matters for this. The gift will have no income tax implications in India for you or your children but ask your children to check with their tax consultants in Germany for any tax implications in that country.
I own an old building that has 12 tenants. They pay rent based on an old pagdi system and cannot be removed as they are protected under the age old Rent Control Act. Since the building is in bad condition and I get a rent as low as R150 per flat, can I redevelop the building? How do I arrange finance from the bank for redevelopment against the same property as mortgage? Can I develop it myself ? Due to an ambiguous development plan no builder or developer is interested in the project?
– K P Deol This is a developer proposal and not a regular loan against property.
Given the nature of the proposal it is unlikely that any bank or lender will lend for this project
You can try getting a loan against the security of some other real estate. Loan for this project may be available at the stage where all tenants have agreed and approvals are in place