WILL for the property purchased through Home Loan

POSTED BY vij ON August 9, 2012 9:25 pm COMMENTS (9)

I am going to purchase an apartment. I am taking loan for the 80% amount.

I want to make a WILL for the apartment around the same time as the registration

Considering the original sale deed would be with the bank till the time i pay-off the complete loan, is it possible to make a WILL ?

Please clarify

Thanks in advance for your response



9 replies on this article “WILL for the property purchased through Home Loan”

  1. vij says:


    Thanks for your response.

    The query what i was having when i was asking about multiple did, bharat has sort of clarified that.
    What i was considering that if someone has made a WILL and after that the person purchases a new property, then there would be a need of a new WILL. However, now i understand that in the WILL, one can mention about the future assets as well

    1. Dear Vij, please read my reply again. In case of addition of more assets in the future after the WILL formation, it’s advisable to write a new WILL & also mentioning a sentence in the new WILL that this WILL supersedes any other old WILL created in a past date.

      Why a new WILL? If you are not mentioning the beneficiaries for the future assets in the new WILL, the problem or should I say dispute ‘ll remain there for distribution of these future assets.



    2. Vij

      It depends now you have structured the wordings of the WILL . You can mention the real estate point wise by mentioning their address etc like

      1. Flat no 32 , … at Delhi
      2. Flat 90 , at Bangalore

      This way your future assets will not be considered in WILL , they are out of the scope . But if you mention it something like

      1. All the Residential Flats and Land registered on my name at the time of my death , should …

      This way , its a generic statement and will include everything which satisfies the criteria !

  2. Why do you want to write seperate wills for seperate assets ? What do you want to achieve with it , in one will only , you should say what you want to do with it , note that you should register your WILL to avoid different kind of issues which arise . It takes not more than 1,000 to do it .

  3. BanyanFA says:

    @ Bharat, A very good perspective around Wills.

    @ Vij – Even though you have taken the house on loan, the ownership still vests with you, though it ownership is a bit subdued as the bank has the first right on the house to the extend of the dues.

    However, nothing stops you from making a will. Make sure that the will is registered as Bharat mentioned. To avoid disputes, have a single will, with witnesses.

    If you have other assets such as Bank accounts, FDs, Mutual Funds, Shares, etc. please make sure that you have a nomination as well. Though the Will shall over ride the nomination, but nomination shall ensure that the transfer of funds to the nominee is smooth. Check this out http://insight.banyanfa.com/why-is-nomination-important/


  4. bharat shah says:

    though Ashal replied the query, i like to state some points about WILL for general understanding:

    1. it may even include your future assets by wording ‘ if any movable or immoveable assets i acquire in future and existing at time of my death should be available to———-‘
    2. you should name the executor/s for the execution of the ‘will ‘ in the will. he/they could be the beneficiaries of the will or other, as you wish.
    3. you should sign the will with two witnesses .
    4. it is not compulsory to register the ‘will’, but in case of chance of differences between the legal heirs after your death , it is better to register it. Registered ‘will’ would be trusted over the unregistered will, even the latter is made latter.
    5. as understood, in other than presidency cities ,( mumbai, calcutta and chennai) ‘probate’ from the court is not required for transfer of assets according to ‘will’ , if all legal heirs have no doubt for the authenticity of the will . for presidency towns , the probate is a must..

  5. vij says:

    Thank Ashal for the prompt response.

    Is there a need of Bank’s involvement or would the original sale deed (which is going to be with bank) be needed for the WILL ?

    Can i make the WILL after sometime of the registration (if the sale deed is not needed)

    Can a person make more than one WILL i.e. separate WILL for the house, separate will for the investments and a separate WILL for the plot or the second house?

    Thanks very much in advance

    1. Dear Vij, there is no need of Property papers to be attached with the WILL. So no matter original property papers are with bank till loan completion, you can still write that house in your WILL.

      Please do note, there can be only one WILL at a time, containing all the assets & investments & any other thing you want to include in your WILL.

      In case you are preparing more than 1 WILL, only the latest WILL ‘ll be accepted as the valid WILL & all other prev. WILLS ‘ll become invalid. So it’s in your own interest to prepare a single WILL & mention all your assets & investments in that WILL itself & how you want to distribute these among the beneficiaries as per your own choice.



  6. Dear Vij, Yes is the answer. You can make a will for this house & all other assets & investments under your name. Important point is – due to home loan, first right on this home ‘ll remain with bank & the beneficiary of your WILL may stake claim & possession of the home after clearing the dues of bank for the home loan in question.



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