As satisfying as it is to be a property owner, there are also challenges. These days, joint property ownership can involve a wide range of contractual arrangements. Owners and tenants in common and joint ownership are two examples of property ownership arrangements with slightly different transfer laws.
You may be wondering, “Why should I care?” Many people in our country fall victim to fraud during real estate transactions. Someone, whether a buyer or an heir, is likely to want a piece of their good fortune. The Indian judicial system has a reputation for being one of the least effective in the world, and it comes as no surprise that property disputes account for the vast majority of pending cases. As a result, most wealthy families always have a real estate lawyer on call.
In this article, we’ll compare and contrast two of the most common agreements for joint ownership of real estate. Keep reading to find out what sets them apart, so you can protect yourself from land scams and know when to contact best lawyers in Chandigarh high court.
Co-ownership
Co-ownership occurs when two or more people share the ownership of an asset. Jointly owned properties are those owned by more than one person. Partners in business, friends and family, or members of the same extended family might all make good candidates for joint property ownership. When a husband and wife share property ownership, they are considered to be using the “marital” form of joint ownership.
Forms of Co-Ownership
In India, there are four distinct forms of co-ownership, distinguished primarily by the rights each owner has to the property. Here is a rundown of all of them:
Joint Tenancy
Tenancy in Common
Coparcenary
Tenancy in Entirety
Joint property ownership
Joint tenancy is a popular form of co-ownership among married couples and other long-term relationships because of its many advantages. The key to this form of ownership is the merging of the parties’ interests, rights, and obligations. When one tenant dies, the other tenants continue to own the property because of the right to survivorship that comes with joint tenancy.
But there are a number of prerequisites, which we’ve outlined below:
Only a will or deed can establish joint tenancy.
Each tenant in a joint tenancy must have an undivided interest in the entire property.
The document establishing the joint tenancy must state, with specificity, that it is intended to create a joint tenancy estate.
All of the joint tenants’ shares must be vested simultaneously.
Estates or shares held by each joint tenant must be of the same type and duration for all tenants.
Tenancy in Entirety
Since marriage is a precondition for this form of joint tenancy, it is typically used by married couples. In the event of one spouse’s death, the surviving partner automatically becomes the owner of the property. If the spouses jointly file for a change or a divorce, however, the joint ownership status is changed.
Tenants in Common
This form of joint ownership predominates. All co-owners in a tenants-in-common arrangement have lifelong, undivided use rights to the property even if their ownership interests are unequal. However, in this arrangement, co-owners do not obtain survivorship rights. When one co-owner passes away, his or her share does not automatically transfer to the other co-owner(s). The inheritor then joins the co-owners in equal status.
Nonetheless, it’s important to distinguish between a tenant in a co-ownership and a tenant paying rent to a landlord, as the latter is governed by a different law than the former.
Legal Protections for Joint Owners
There are three potential legal protections for joint property owners under Section 44 of the Transfer of Property Act. You can contact SL Legal services, a top law firm in chandigarh to know more about legal protections for joint owners.
The following are examples of such rights:
Right to possession
Right to use
Right to dispose of the share
However, depending on the agreement between the co-owners, some of these rights may be limited. For instance, all joint owners may need to approve a shareholder’s plan to sell their shares.
Why is Co-Tenancy the Default?
Tenancy in common is presumed to exist when a deed does not specify the shares of the partners or any instance of joint tenancy. This method has numerous benefits. Any co-owner may sell or otherwise transfer his or her interest to another party without requiring the consent of the other owners. When a co-owner dies, her or his share passes automatically to his or her surviving spouse regardless of gender; either spouse can then sell the deceased’s share.
Conclusion
The two most common types of property co-ownership in India differ only in terms of the right to survivorship, though there are a few other types. Tenants in common do not have a right of survivorship over one another, unlike joint tenants. Instead, it allows the decedent’s heirs to take over ownership after death.
If you’re in need of a best property lawyer in Chandigarh, look no further than SL Legal Services for reliable representation. If you know someone who is embroiled in a property transfer case, and you know the difference between the two main types, you may be able to advise them on whether or not they need an attorney.