Introduction
Before entering into such an agreement, home buyers should know and familiarize themselves with the basic principles of co-ownership of property. Types of joint ownership or co-ownership of property will be discussed in this article. Read it completely.
Table of Contents
- Joint Tenancy
- Tenancy in Entirety
- Joint Ownership Under Hindu Law
- Understanding Joint Property Ownership
Joint Tenancy
A joint tenancy is one when the title deed of the property works on the concept of unity by providing an equal share of the property. The key determinants of unity in this type of co-ownership are unity of title, unity of time, unity of interest, and unity of possession. Since this arrangement works on the law of survivorship, upon the death of a joint owner, his share automatically passes to the surviving owners.
Although joint tenancy cannot be created by intestacy, it can be created by will or deed. It should also be noted that joint tenancy is easily transferable. Section 44 of the Transfer of Property Act, of 1882 deals with the transfer of shares by one of the joint owners. The person benefiting from the transfer of ownership will be able to enjoy the same legal rights in the property as the previous owner.
Tenancy in Entirety
Tenancy variation of joint ownership, i.e., there should be an understanding between the co-owners of the property joined by marriage. This type of co-ownership works on four models of unity and survival. But only between spouses. If spouses mutually agree to exchange it or file for divorce, this arrangement changes joint ownership.
Example
Partners of Nitin and Mithali bought the house in 2012 registered it in their names and are residing in that house. If any of them dies, the survivor gets the deceased party’s share of the property. Legal heirs of the last joint owner are not.
Tenancy in Common
When two or more persons own property in common, when the other three types of unity do not apply, it is called tenancy in common. A simple tenancy on concept survivorship also does not work. Only unity of title appears in this arrangement. But there may or may not be unity of possession, time, and interest.
Since the concept of survivorship does not operate, each joint tenant can assert his interest in the property. The point to be noted here is that unless any other ownership is described in the joint ownership agreement document, the owner is considered a joint tenant.
Joint Ownership Under Hindu Law
The Hindu Succession Act, of 1956 established a correlative form of ownership between members of Hindu Undivided Families (HUFs). This concept, akin to joint tenancy, allows the unborn child to have an equal share in the HUF property. After the baby’s birth, a coparcener becomes a share in the property held jointly by the HUF.
Example
Lalitha and Shivamsha’s son Kunal were born posthumously. Even if Kunal was born three months after his father’s death, he would be entitled to inherit his father’s share in his ancestral property, which is governed by HUF laws.
Understanding Joint Property Ownership
- There is no distinction between joint ownership and co-ownership under any law.
- Both, joint tenancy with right of survivorship and tenancy by the entirety, include rights of survivorship.
- In ownership types where survivorship operates, it continues until the last surviving owner owns the entire property. When the last surviving owner dies, the title passes to the owner’s heirs.
- Hindu law does not provide for different types of joint ownership.
- In coparcenary property, each coparcener acquires an interest by birth.
Conclusion
The choice of joint ownership depends on factors such as relationships, legal requirements and personal preferences. Whether it’s equal shares, rights of survivorship, or specific legal frameworks, understanding these types can help co-owners make informed decisions about property ownership. For more information, visit openplot.
Also read: How to Start a Real Estate Business Without Money?