Hi, Buddy,
I know that because of the high capital values of properties, the majority of houses are purchased with the assistance of a house loan. So, what happens if you inherit or give a home with an outstanding mortgage? Let me assist you in solving your query of can a mortgaged property be gifted?
Get legal advice regarding gifting mortgaged property from the experts at NoBroker legal assistance service. Can mortgaged property be gifted, what is the law regarding the same:A donor can gift a mortgaged property under Section 128 of the Transfer of Property Act. Gifting a house with a mortgage is a common thing, however, the donee (recipient of the gift), on the other hand, is personally liable for all debts and liabilities related to that property.
Your lender/banker establishes a Mortgage Lien on the property when you take out a house loan. A mortgage lien is a claim by your home loan provider to conditional ownership of your property. A lien is a creditor's legal right to sell a debtor's collateral property if you fail to meet the terms of a loan arrangement.
So, gifting property with a mortgage can be done, it’s just that, you need to notify your lender and get their permission first. The gift becomes lawful if you obtain formal permission from your lender.
If you do not obtain your lender's consent, about the gift deed mortgaged property, you may be subjected to legal action. Your lender can reverse the gift deed of a mortgaged property you signed through a court of law.
Please keep the following points in mind:After the mortgage has been repaid, a mortgaged property might be gifted. You can pay off the outstanding loan balances and give the property away without any problems.
If you are gifting a mortgaged property, the donee must take the burden/obligation of the mortgage in addition to the gift.
I hope this answer clarified your query about can a mortgaged property be gifted.
Read More:
Who Will Take Possession Of A Property Mortgaged With A Bank If I Cannot Repay The Loan On Time? How To Make Gift Deed? Can We Sell Gift Deed Property Within 1 Year Of Transfered
Can a Mortgaged Property be Gifted?
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2022-03-21T22:07:20+00:00 2022-03-21T22:07:21+00:00Comment
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