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My sister owns a constructed house for which she availed a loan from Housing finance company.  Since she is going to get married shortly, she wishes to transfer the house to her mother, by way of gift.  Is it possible to give the gift without clearing the loan amount?  If we do so, what will happen?

- by Raveendran, HSR Layout, Bangalore

As the property is already mortgaged to a Housing finance company, it will have first charge over it.  Without clearing the loan, if the property is transferred to her mother, it will attract provisions of criminal law.  Every year the HFC/banker apply for Encumbrance Certificates from concerned authorities and make out the status of the property mortgaged.    I advise to clear the loan and thereafter to gift the property.

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These are all the legal questions answered by Advocate S.Selvakumar in various magazines, in various occasion including realestate reporter monthly.