Karta - Mortgage loan

[Guest]

CAN KARTA OF HUF RESIDENTIAL PROPERTY GET REVERRSE MORTGAGGE LOAN?

[Ravi Chopra]

If the karta of HUF is the owner of the house property, than yes, he can get the reverse mortgage loan.

[Surender Gupta]

I think no. In TMI commentaries you would find the scheme of two banks SBI and National Housing Bank for your kind reference. We have seen the scheme of other banks also. They need the clear title of the property. In case of property of HUF, you do not have the clear title of the property. In addition to this, you can also visit the notification no. 93/2008 - Income Tax which notifies the "reverse mortgage scheme" scheme. Para (3) of the scheme is read as: 3(1) Any eligible person may enter into a reverse mortgage transaction by applying in writing to the approved lending institution, if the capital asset, being mortgaged, is (i) owned by him; and (ii) free from any encumbrances. Therefore, I believe that it is difficult to get the RML on HUF property. However, if you get the HUF transferred in your name, yes you can get RML.

AI Summary

Debate on Karta's ability to secure reverse mortgage on HUF property highlights title issues and bank requirements. A discussion on whether the karta of a Hindu Undivided Family (HUF) can obtain a reverse mortgage loan on HUF residential property received mixed responses. One participant argued that the karta, as the property owner, could secure such a loan. Another participant disagreed, citing bank schemes requiring a clear property title, which HUF properties typically lack. Additionally, they referenced a notification specifying that the property must be owned by the applicant and free of encumbrances. The consensus was that transferring the HUF property to an individual's name might enable obtaining a reverse mortgage loan.