Skip to main content

Joint ownership of property

Joint ownership is when two or more persons hold title to the same property. In case of coparcenary, the members have a common and an equal interest in the ancestral property. Any co-owner can transfer his share in the property to an outsider or another co-owner, and the transferee steps into the shoes of the co-owner. The transferee becomes the co-owner.


A co-owner is entitled to three essentials of ownership - right to possession, right to use and right to dispose off the property. Therefore, if a co-owner is deprived of his property, he has a right to be put back in possession. Such a co-owner will have an interest in every portion of the property and has a right irrespective of his quantity of share, to be in possession jointly with others. This is also called joint-ownership.

Co-ownership can be changed to sole ownership through partition. The term co-owner is wide enough to include all kinds of ownerships such as joint tenancy, tenancy in common, coparcenary, membership of Hindu Undivided Family etc. The very fact that the parties have certain shares in the property indicates that they are co-owners.

Here are some forms of co-ownership:

Joint tenancy

This entails the right of survivorship. Upon the death of one joint tenant, his interest immediately passes to the surviving joint tenants and not to the descendant's estate. Joint tenants hold a single unified interest in the entire property. Each joint tenant must have an equal share in the property. Each joint tenant may occupy the entire property subject only to the rights of the other joint tenants.

Joint tenancy has several requirements that must be met in order to be properly created. The conveyance must state specifically that the grantees are taking the property jointly.

There are four additional legal requirements necessary in order to create a joint tenancy.

Unity of time: The interests of the joint tenants must vest at the same time.
Unity of possession: The joint tenants must have undivided interests in the whole property and not divided interests in separate parts.
Unity of title: The joint tenants must derive their interest by the same instrument.
Unity of interest: Each joint tenant must have estates of the same type and same duration. All these four unities must exist. If one unity is missing at any time during the joint tenancy, the type of co-ownership automatically changes to a tenancy in common. A joint tenancy may be created by a will or deed but can never be created by intestacy because there has to be an instrument expressing joint tenancy. A joint tenancy is freely transferable.

Tenancy by entirety

This type of co-ownership is exclusively for a husband and wife. Tenancy by entirety provides the right of survivorship. To exist, a tenancy by entirety requires that the four unities of a joint tenancy exist, plus a fifth unity of marriage should exist between the two co-owners. However, even if all five unities exist, the type of co-ownership may still be joint tenancy if the conveying instrument indicates as such.

Unlike joint tenancy, tenancy by entirety does not allow one spouse to convey his or her interest to a third party. However, one spouse may convey his or her interest to the other spouse.

A tenancy by entirety may be terminated only by divorce, death, or mutual agreement by both spouses. A terminated tenancy by entirety becomes a tenancy in common.

Section 44 of the Transfer of Property Act 1882 deals with transfer by a co-owner. It also deals with the rights of a transferee in this type of a transaction. Where a co-owner transfers his share of a property, the transferee acquires the transferor's right to joint possession, use, and to enforce a partition of the property. Where the transferee of a share of a house belonging to an undivided family is not a member of the family, he will not be entitled to joint possession or other uses.

A person who takes transfer from another, steps into the shoes of his transferor, gets all the rights, and becomes subject to all the liabilities of the transferor. He becomes as much a co-owner as the transferor was before the transfer. A coparcener of a Hindu Undivided Family can alienate his share in the property for a consideration.

Tenants in common

When the type of co-ownership is not specifically stated, by default a tenancy in common is likely to exist. Each tenant in common has a separate fractional interest in the entire property. Although each tenant in common has a separate interest in the property, each may possess and use the whole property.

Tenants in common may hold unequal interests in the property but the interest held by each tenant in common is a fractional interest in the entire property. Each tenant may freely transfer his interest in the property. Tenants in common do not have the right of survivorship. Therefore, upon the death of one tenant in common, his interest passes through a Will or through the laws of intestacy to another person, who will then become a tenant in common with the surviving co-owners.

Popular posts from this blog

What is Electronic Clearing Service (ECS)?

  As the name suggests, it's an electronic process through which money can be transferred from one bank account to another. According to RBI, this mode is usually used for regular payments and receipts, like distribution of dividend, interest, salary, pension etc. This mode is also used for collection of bills for telephone, electricity, water, various types of taxes, payment of EMIs , investments in mutual funds , payment of insurance premium etc. There are two types of ECS , like most other banking transactions, ECS credit and ECS debit. An ECS credit is used by a bank account holder , usually a large company or an institution for services like payment of dividend, in terest, salary, pension etc. If your mutual fund pays you dividend to your bank account, of all probability it is being paid through ECS credit.ECS debit, on the other hand, is used when a company or an institution is getting money from a large number of people. For example if you are investing in a mutual fund sc...

WEALTH TAX

Download Tax Saving Mutual Fund Application Forms Invest In Tax Saving Mutual Funds Online Buy Gold Mutual Funds Leave a missed Call on 94 8300 8300 WEALTH TAX   WHAT CONSTITUTES WEALTH? For wealth tax purposes, "wealth" means property , urban land, car, jewellery , yacht, boat, aircraft and cash in hand in excess of Rs 50,000. CAUTION POINT | Do not think you will have an easy escape from wealth tax by transferring your `wealth' without consideration to your spouse or minor child. Such assets will also be considered as your wealth. HOW TO DETERMINE YOUR TAXABLE WEALTH Add the taxable value of the above assets (computed as per the detailed rules for valuation) owned by you as on March 31 (for FY 2014-15, it will be March 31, 2015). In case you sold your car during the year, it will not be taxable wealth. Deduct loans if any obtained by you to acquire any of the taxable assets from the value of gross tax out for at least 300 days in a...

Equity Savings Fund

Invest Equity Savings Fund Online   The best part about these funds is that they are subject to equity fund taxation and at the same time are structured like MIP like funds . This new category, equity savings funds , offer a little of everything. They allocate money to equities & equity related instruments, and fixed income. They aim to generate returns by diversification. Such funds invest in fixed income and arbitrage to protect the investors from short term volatility and equity for capital gains. The best part of these funds is that they are subject to equity fund taxation and at the same time are structured like MIP funds.   MIP funds however are subject to debt fund taxation. Investors Equity savings funds are suitable for the following: First time investors who seek partial exposure to equity with less volatility and greater stability Investors seeking moderate capital appreciation with relatively lower risk Those wh...

8% Government of India Bonds quick guide

For those seeking comfort in safety of returns, the Government of India issued 8% savings bond once again comes to the fore. First launched in 2003, these bonds are issued by the government with a maturity of 6 years. The bonds are available at all times with specified distributors through whom you can apply to invest in them. Here is a quick guide to what the bond offers and its features to ascertain to check for suitability. What are Government of India bonds Government of India bonds are like any other government bonds with specified rate of interest. The rate is fixed at 8% per annum paid half yearly, or you can opt for cumulative payment of interest at the end of the tenure. You can buy these bonds from State Bank of India and its associates, other nationalized banks and some private sector banks such as HDFC Bank Ltd and ICICI Bank Ltd, among others. The bonds can be bought from the offices of Stock Holding Corporation of India as well. They are available in physical form onl...

Tax on Kisan Vikas Patra Returns

  Taxation of Kisan Vikas Patra The interest earned on Kisan Vikas Patra (KVP) doesn't enjoy any tax exemption   The interest earned on Kisan Vikas Patra (KVP) doesn't enjoy any tax exemptions. The interest earned from it is taxed as per the Income Tax slab applicable to the investor on redemption. That means an investor in the highest tax slab will pay 30 per cent tax on the returns from KVP . Also, 10 per cent of the interest earned would be deducted as tax deducted at source (TDS). ----------------------------------------------- Invest Rs 1,50,000 and Save Tax under Section 80C. Get Great Returns by Investing in Best Performing ELSS Mutual Funds Top 10 Tax Saving Mutual Funds to invest in India for 2016 Best 10 ELSS Mutual Funds in india for 2016 1. BNP Paribas Long Term Equity Fund 2. Axis Tax Saver Fund 3. Franklin India TaxShield 4. ICICI Prudential Long Term Equity Fund 5. IDFC Tax Advantage (ELSS) Fund 6. Birla Sun Life Tax Relief 96 7. DSP BlackRock Tax Saver Fu...
Related Posts Plugin for WordPress, Blogger...
Invest in Tax Saving Mutual Funds Download Any Applications
Transact Mutual Funds Online Invest Online
Buy Gold Mutual Funds Invest Now