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What action should i take to recover EMI amount from co-owner?
30-Apr-2023 (In Property Law)
We purchased a joint property with home loan facility of Rs.17.5 lakhs. Property is registered on name of my elder brother(1st owmer), father and me (co-owner). Due to certain family dispute since last 1yr my elder brother is not ready to contribute any rupee for EMI. What should we do for recover the same or what action we need to withdraw his name from agreement?
You can send him a legal notice demanding the payment of the same, if your uncle still denies to comply to the same then you can file a civil suit for recovery in the jurisdictional civil court.
As, It is advisable that each one of you repays the amount of principal and pays the amount of interest separately in the ratio in which the house is owned by the three of you i.e. 33.33 per cent each. This will enable each one of you to claim deduction under Section 80C of the Income Tax Act 1961 (The Act) as well as the interest paid for the acquisition of the house under Section 24 of the Act without any hassles with the tax department.
b) It has been indicated in the query that the re-payment in respect of the amount of principal amount as well as payment of interest is being made by debit to your savings account and the other co-owners are reimbursing you their share randomly depending on availability of funds with them. This is not a correct procedure. The other co-owners should immediately reimburse the amount paid by you on their behalf so as to enable them to claim the aforesaid deduction. In order to set the matters right, the other co-owners should immediately reimburse the amount paid by you on their behalf up to a particular day - say up to August 2016. After the said date each one of the co-owners should pay his share of the principal amount as well as the amount of interest as advised above so as to steer clear of any problems.
As, It is advisable that each one of you repays the amount of principal and pays the amount of interest separately in the ratio in which the house is owned by the three of you i.e. 33.33 per cent each. This will enable each one of you to claim deduction under Section 80C of the Income Tax Act 1961 (The Act) as well as the interest paid for the acquisition of the house under Section 24 of the Act without any hassles with the tax department.
b) It has been indicated in the query that the re-payment in respect of the amount of principal amount as well as payment of interest is being made by debit to your savings account and the other co-owners are reimbursing you their share randomly depending on availability of funds with them. This is not a correct procedure. The other co-owners should immediately reimburse the amount paid by you on their behalf so as to enable them to claim the aforesaid deduction. In order to set the matters right, the other co-owners should immediately reimburse the amount paid by you on their behalf up to a particular day - say up to August 2016. After the said date each one of the co-owners should pay his share of the principal amount as well as the amount of interest as advised above so as to steer clear of any problems.
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Adv. Siddhant Sharma
Delhi | 500+ Answers
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