Brother taking loan for house asking to pay half interest

728 votes

the transaction which sought to be promulgated is a benami transaction which is barred by law, save and except if the same is covered under proviso to Section 4 of the Benami Transactions Act. we will have to devise a way and clothe the transaction in such a manner that we are in a position to claim a title in the property during the lifetime of the father and also thereafter. for the said purpose i will need certain details. kindly contact me for further advice.

Advocate Rahul Malhotra LawRato

793 votes

On the first part of ur query regarding home loan being taken by your brother in his name and to purchase In his father name, it is stated that generally home loan are given in the name of purchaser. However there
can be joint owner in the property. If ur father is earning his income can be
clubbed for the purpose of loan and ur brother or father can be shown co
owner or joint purchaser. But in no
ccircumstances bborrower of home
loan can purchase the property in
some other name without showing
such person as borrower. In this
circumstances this cant be presumed
as secured loan and bank cant take
such risk. However if your brother is
seeking personal loan , he can use
this money for the purchase of
property in your father name by
paying this amount to him.
Regarding second query if the
property is self acquired from the
source of your father income there
can be two scenario. Your father may
execute a WILL of his property in
favour of anyone before he dies.
Secondly if he dies intestate, as per section 14 of HS Act his wife can become absolute owner of his property . If she pre deceases his husband , his all
Legal heirs ie his wife, sons and
daughters will have equal share in the
property.
Regarding second query

Advocate Krishan Kanhiya Makhija LawRato