My brother and I are in the process of dividing our family property. I want to transfer a flat to him. But I have an ongoing home loan on the flat. Is it possible to transfer the flat to him, while I continue to repay the loan?
In such a case, it will depend on the terms and conditions agreed between you and your financier. You need to check with your financier, and if agreed, he will do an internal loan transfer wherein you may be requested to exercise fresh documentation along with your brother.
To book an apartment, I gave a builder post dated cheques (PDCs) of Rs 1 lakh. In return, he handed me a draft of the sale agreement. However, I don’t find the agreement suitable and want to propose some changes. In case the developer is not ready for the changes and I opt for a stop payment of the PDCs, can he register a case against me in the court? Can the stop payment lead to dishonouring of a contract?
According to the law, the transfer of value through an instrument (PDC in this case) is valid only if the holder of the instrument is ‘holder in due course’. In this case, it needs to be settled that if the builder has fulfilled the delivery of goods\services, for which he is holding the PDC, else he may not be the holder in due course and thus, the stop payment may not lead to dishonouring of a contract.
What are reverse mortgage loans? How do they work?
A reverse mortgage is a financial tool that enables senior citizens and homeowners to benefit from the equity they have in their homes, without selling and making payments on a loan. This enables them to stay in their homes for as long as they want, without losing ownership and without any kind of risk. The house should be self purchased and not inherited.
Based on the market value of the property and the age of the applicant, the loan amount is sanctioned by the bank. It is disbursed as an annuity and based on customer’s needs/requirements. The property is mortgaged with the bank. The loan becomes due only when the surviving borrower dies, sells the home or permanently moves out of the home.
The writer is the president, retail banking, Axis Bank. Send your queries to yourmoney@bsmail.in
