How to remove co-owner name from property title deed?

When you are buying a property, you have the choice to become its single owner or invest through co-ownership. As the name suggests, in single ownership, there will be only one owner that is you. However, in case of co-ownership, there can be multiple owners of a property. They can be your parents, siblings, spouse, partner, etc. In case of a dispute between the co-owners, you may feel the need to remove a co-owner from the co-ownership. Can it be really done? If yes, what are the steps to follow? Housing News is looking for answers in this guide.

 

What is property title deed?

A legal document that establishes the ownership details of a property is known as property title deed. This informs owners about the area of the property, its address, etc. It is necessary to always register your property with the government so that in case of litigations, you will have a legal proof. In India, a property title deed is mandatory for transfer of ownership between two or more parties.

 

Difference between joint owner and co-owner

Joint owner

A joint owner has equal ownership in a property and mostly includes rights of survivorship.

Co-owner

A co-owner will share ownership of a property, but it is not necessary that the rights will be equal. Also, co-ownership doesn’t come with survivorship rights.

Rights of a co-owner

• A co-owner has the right to possess and enjoy the property that corresponds to his ownership.
• A co-owner has the right to earn money and profit from the property that corresponds to his ownership.
• Co-owners can also be involved in property maintenance unless they have specifically not opted for it and recorded that in the property deal.
• A co-owner can sell or transfer his property if he gets approval from other co-owners.

Rights of a joint owner

• A joint owner has equal and undivided ownership in the property.
• The joint owner has the right of survivorship where if one joint owner passes away, that share is transferred to the surviving joint owners. This happens until there is only one owner.
• Joint owner has the right to make equal decisions, participate in maintenance of property, etc.

 

How to remove the name of a co-owner from property title deed?

Partition lawsuit: In this, a partition lawsuit will be filed against co-owners in a court. If the court grants it, the property may have to be sold, thus removing the co-owner from the property title deed.

Gift deed: In this, property ownership can be transferred from a donor to a donee without money being involved. So, a co-owner can transfer his share to you through a gift deed without taking money.

Quitclaim deed: Using this, the person’s holding in the property is released and transferred to someone else. After this, the person’s name as co-owner is removed from the title deed.

Relinquishment deed: With this deed, a co-owner voluntarily gives up his share in property. This deed must have the consent of all co-owners and must be registered in the sub-registrar’s office so that it is legalised. There must be two witnesses present when this deed is registered.

Release deed: This is when a co-owner wants to transfer his share of property to another co-owner or give it to someone else who was never a co-owner of the property. Before executing the release deed, consent of all co-owners is required. This should be registered in the sub-registrar’s office so that it is legal. There must be two witnesses present when this deed is registered.

 

Housing.com POV

Care should be taken before removing a co-owner name from the property title. Also, you should evaluate the easiest method through which this can be done. Finally, whatever method is used should be under the legal boundaries and should be fair to all parties involved.

 

FAQs

Can a co-owner sell a co-owned property without consent from others?

A co-owner can sell a co-owned property if details of his ownership is mentioned in the property sale deed.

Who is a co-owner?

Any person who has a share in the property owned by more than one owner is a co-owner. Note that the share owned by the co-owner may not be equal to other owners.

What should a co-owner do who wants to give up his rights?

A co-owner can opt for a relinquishment deed for transferring his rights of the property to someone else.

Can you relinquish your property to somebody who is not a co-owner?

No. You cannot raise relinquishment deed and give your property to somebody who is not a co-owner. If a property is transferred to someone in this way, it is considered as a gift deed and will attract stamp duty.

Are there tax benefits associated with relinquishment deed for a property?

As it is the only transfer of property, if you opt for a relinquishment deed, you won’t have any tax benefits.

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]