Real Estate

Property Ownership Rules in India – Deciding the Owner’s Name Requires Special Attention

Deciding the name of the property owner can be a complex task. From the following discussions, you can get an idea of ​​the rules regarding inheritance of property in India.

Individual property

It means that only one person has the authority to sign a deed to sell, rent or lease a property and no one else can do the same with the property.

Normally, there is no possibility of conflict in the transaction of individual property properties. But the fact that the owner does not stay in the same city can cause problems. In such cases, a power of attorney may be given to a trusted person to handle and make decisions about property-related matters.
The owner can decide his successor to the property and make a will in favor of the successor accordingly.

Religion can influence personal law, which takes effect if a will is unavailable, and it is best to consult an attorney to be clear about the merits and demerits of such laws.

Different religions are governed by different Acts of Succession. The Indian Succession Law describes the laws related to Christians, Jews and Parsis, while, as the Hindu Succession Law says, about the laws applicable to Buddhists, Jains and Hindus. However, according to Muslim law, the owner has the right to give only one third of his property to the successor and the rest will be governed by Muslim law, which has more divisions according to different sects.

Co-ownership

In joint ownership, either owner has the right to decide on a property, and eliminates the need for a power of attorney if one of the owners is absent. The surviving owner becomes the sole owner of the property in the event of the death of the other owner. Thus, the surviving ship and security come automatically. Even not making a will will not make any difference to joint ownership.
In Co-ownership, the signature of both owners is essential to sell or remove the name of the property. Therefore, it is difficult to reverse the decision to have sole ownership after entering into a joint ownership deed.

In the event of a permanent division such as divorce, each owner will have an equal share of the property. But if the property is bought or built with the investment of one of the owners, then the person can file a lawsuit showing all the details of their investment by requesting sole ownership of the property in court.

Co-ownership

Co-ownership ensures the relevant ownership share of each owner’s investments. Therefore, co-owning a property is a wise decision if two people invest in it. The part of the property may depend on the investments of the co-owners. If the percentage of ownership is not specified in a deed of co-owners, the equitable share will go to each owner.

Each of the co-owners can have a separate co-ownership agreement stating their ownership interest in the property that helps to avoid legal complications in the event of a separation between the co-owners, and each of the owners can decide their successors for their respective shares.

Nomination

This option is intended for apartments in cooperative societies. The nominee can never be proclaimed owner. In the event of the death of the original owner, until and unless the nominee is named as successor, he or she cannot become the owner of the property.
A nominee becomes a member of the partnership and nominal owner after the owner’s death, but the person named in the will becomes the ultimate beneficiary.

Lessons to learn

It is advisable to write a will immediately after owning a property.

You can empower a trusted person for your individual property.

Please think carefully before making someone a co-owner.

Co-ownership is a wise investment decision to buy a property.

Write a will naming the successor of your action in case of joint ownership.

It is always better to write separate wills naming the successor, even if the co-owners decide to give their part to the same person.

In Goa, according to Portuguese law, the wife owns 50% of her husband’s property and vice versa.

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