How to execute gift deed for a property which is mortgaged in bank?

If the property is under mortgage, all the original title documents including registered deed would have been deposited in lending bank, we may not have access to title documents until the mortgage is cleared

Under such circumstances, we can execute gift deed in two scenario

  • Close Family members or blood relatives: Can gift property to close family members even if the property is mortgaged. Just the photocopy of title documents is sufficient to register the gift deed in sub-registrar office.

  • Non-family member or non-blood relative: To gift property to non-family member, we should obtain No-objection certificate from lending bank that instructs the sub-registrar office to proceed gift deed registration without original title documents. In such scenario, loan may transferred from Donor to Donee.

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