Due to the rising property prices in the country, it is becoming more and more difficult for a middle-class buyer to buy a house in a good location. As a solution to this increasing unaffordability, a number of homebuyers are going for joint ownership of property. It may look like an easy task of just dividing your financial burden but you should know that there are multiple types of joint ownership of property in India along with several legalities involved. So, let us talk about these in some detail.
Majorly, there are two types of co-ownership namely Joint Tenancy and Tenancy in Common.
Under this agreement, all tenants get equal ownership of the property through a single sale deed. This means that the property is equally shared among all the co-owners. Also, it works on the concept of survivorship which means that in case a co-owner dies, his rights will be automatically transferred to the surviving tenant. For example, if Rahul and Rajiv have agreed to a ‘Joint Tenancy’, the property will entirely be of Rajiv in the case of Rahul’s demise.
Under this type of joint ownership, the share of each co-owner is not decided at the time of property purchase. By default, they will have equal rights on the property. However, in case of the demise of one of the co-owners, his rights will not automatically be transferred to the surviving owners. Property division will be done on the basis of what is mentioned on the deceased owner’s will. For example, if Shreya and Shweta purchased a property under ‘Tenancy in Common’ agreement, and Shreya’s will mentions that her share of the property should be passed on to her son Utkarsh, the property rights will be transferred to Utkarsh on Shreya’s demise.
An important point to note here is that if the type of co-ownership is not specifically mentioned in the agreement, it will be considered as a tenancy in common by default.
All the co-owners of a property will have the right to possession, usage and disposition of their share of the property. If you are co-owner and are deprived of any of these rights in the agreement, you must talk to your lawyer about it before signing.
As mentioned above, all the co-owners of the property have the right to dispose of their share by selling it to someone else. However, it should happen by the consent of all the owners, unless specified otherwise.
Joint ownership can be a great option for you if you are struggling to afford the property completely on your own. This is especially good for spouses because the government has also given certain rebates to women with respect to property purchase. It could also be a good choice for purchasing a commercial property in India as the business partners can have equal rights over the property or as decided in the agreement.
If you wish to buy a property jointly, you can get complete assistance in this regard from Geetanjali Homestate. Our experts will guide you through each and every step.