1 week ago

Joint Home Loan Death: EMI Liability May Not Transfer Ownership

Death of joint home loan borrower: Who pays the EMIs and who owns the house? SC advocate explains · livemint.com

When two people take a home loan together, both may be responsible for the whole loan.

If one person dies, the surviving borrower usually still has to pay the remaining EMIs.

Paying those EMIs does not automatically make the survivor the sole owner of the house.

The house belongs to the people named in the title deed.

The deceased person’s share may go to their spouse, children, or other legal heirs.

A will or succession law can determine who receives that share.

If the survivor stops paying, the bank may seek repayment from the deceased person’s estate.

A written ownership agreement, a will, and loan insurance can help prevent problems.

Key facts

Loan liability: The surviving borrower generally becomes responsible for all remaining EMIs under a joint and several loan arrangement.
Ownership rule: Repaying the loan does not automatically transfer the deceased borrower’s property share to the survivor.
Inheritance: The deceased borrower’s share typically passes to legal heirs or a nominee under succession law or a will.
Default consequences: The bank may recover dues from the deceased borrower’s estate if the survivor defaults.
Friend as co-borrower: A surviving borrower remains liable for the full loan even when the deceased co-borrower was a friend or unrelated person.
Suggested safeguards: Borrowers are advised to use a written co-ownership agreement, make a will, and consider loan-protection insurance.

livemint.com · 1 week ago