Selling a property that has two or more owners can be difficult because of the involvement of multiple owners. As each co-owner has his/her own share in the property, is it legally allowed for one co-owner to sell his/her share without getting the consent of the other co-owners? Housing News tries to find the legal angle on the subject.
What is a jointly owned property?
A jointly owned property is an asset held in the name of two or more parties, such as husband and wife or business partners, friends, or family members. There are four major ways to own a property jointly. These include:
- Tenancy in common:A joint tenancy is one, when the title deed of the property works on the concept of unity by way of providing them equal share in a property. The key determinants of unity in this form of co-ownership are unity of title, unity of time, unity of interest, and unity of possession. This arrangement works on the law of survivorship.
- Joint tenancy:For a joint tenancy, all tenants must occupy the property at the same time, through one sale deed with an equal interest in the property. The concept of joint ownership is based on the right of survivorship.
- Tenancy in entirety:This form of ownership is exclusive to properties owned by legally married people. The right of survivorship works in case of the tenancy in entirety.
- Coparcenary:This concept of coparcenary is applicable only in case of a Hindu Undivided Family structure. This concept, which is somewhat similar to joint tenancy, allows even an unborn child to have an equal share in an HUF property.
Who is a co-owner in a joint property?
A co-owner is an individual who jointly possesses ownership of a property alongside another individual or group. Each co-owner holds a portion of the asset’s ownership, with the specific percentage varying based on the terms outlined in the sale agreement.
Can a joint owner sell a property?
By virtue of having a fair share in the property, a co-owner enjoys the right to sell his share. However, there are various terms and conditions one must fulfil to make this transaction legally safe and sounds.
“Since there are other stakeholders in the property, a co-owner is expected to either request for a partition of the joint property or take the other co-owners on board before initiating a sale deal. In case the co-owner decided to go ahead without meeting pre-condition, the buyer might face several issues because the entire deal can be cancelled if other co-owners approach the court,” says Prabhanshu Mishra, advocate, Lucknow Bench of the Allahabad High Court.
What happens if one co-owner sells his share in the property without approval from the other co-owners?
In case a co-owner sells his share in the property without getting a prior approval, the aggrieved parties have two options.
- They can file a civil suit requesting cancellation of the sale.
- They can also file a criminal case against the seller on charges of fraud and forgery.
In the first scenario, the court might order the cancellation of the sale deed if it is a case of wrongdoing on part of the seller. In the second scenario, the seller might be booked on charges of forgery and fraud if the same is proven.
Housing.com Viewpoint
Investing in a property that has multiple owners might prove to be a problematic situation from the point of view of a buyer. If the sale is challenged in a court in future by other joint owners, the buyer has the risk of losing the property and getting caught up in a legal dispute for no fault of his own.
While investing your money in such a property, make sure a partition has either taken place, and the joint owner is selling his fair share of the property, or he has the consent of all other joint owners in written.
FAQs
What is a joint property?
A joint property has two or more people having a share. Their share might vary.
Who are co-owners?
Co-owners have a joint share in a property.
Can a joint owner sell a property?
A joint owner can sell his share in the property if the property has been divided.
How is a property divided?
Partition deed is a legal document drafted and executed at the time of division of a common property.
What happens to a property after a partition deed is executed?
Once the partition deed comes into effect, each share in the property becomes an independent entity. Each divided share of the asset gets a new title. Also, members surrender their claim in the shares that have been allocated to the other members.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at [email protected] |
An alumna of the Indian Institute of Mass Communication, Dhenkanal, Sunita Mishra brings over 16 years of expertise to the fields of legal matters, financial insights, and property market trends. Recognised for her ability to elucidate complex topics, her articles serve as a go-to resource for home buyers navigating intricate subjects. Through her extensive career, she has been associated with esteemed organisations like the Financial Express, Hindustan Times, Network18, All India Radio, and Business Standard.
In addition to her professional accomplishments, Sunita holds an MA degree in Sanskrit, with a specialisation in Indian Philosophy, from Delhi University. Outside of her work schedule, she likes to unwind by practising Yoga, and pursues her passion for travel.
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