Table of Contents
Property acquisition can be quite intimidating, considering the costs that the buyer has to bear. In big cities, in fact, a majority of people have to take home loans from banks, to buy properties, as its cost may run into crores of rupees and one may not be able to afford it, without housing finance, especially for those earning a monthly salary. However, apart from all the obvious benefits that a house offers to its owner, there are some additional benefits that only the owners of self-acquired properties enjoy. Property that you inherit will not offer the same benefits.
What is a self-acquired property?
Any property that you acquire with your own money, would qualify as your self-acquired property. On the other hand, a property that you inherit from your paternal ancestors, is your ancestral property.
Self-acquired property vs ancestral property: Main differences
Before we proceed to talk about the various benefits of a self-acquired property, it becomes important to mention that if you receive your share in your ancestral property by way of a will or a gift deed, it does not become your self-acquired property.
Sale of self-acquired property
As the owner of a self-acquired property, you decide when you want to sell it. In case of an ancestral property, the consent of each member in the joint family is needed, to proceed with the transaction. As this would require a lot of time and effort, selling an ancestral property is more difficult than selling a self-acquired property. Also, in case even a single family member raises an objection to the sale, the deal may fall through.
Transfer of self-acquired property
Unlike an ancestral property, you are free to give your self-acquired property to anyone you wish to. In case of ancestral properties, each coparcener will accrue his share in the property by birth and it is quite hard to deny anybody their right in their ancestral property. The ancestral property will pass on from the father to the son. In case of a self-acquired property, however, the father can transfer the property rights to anyone he wishes to.
No matter how large or valuable, an ancestral property is co-owned by all the members in the family, who are entitled to claim their share in it. One fine day, the head of the family may decide to go for a partition, leaving you in charge of only a tiny portion in the house. The same is not true of self-acquired properties. As its sole owner, you have an exclusive right over your property. Your share in an ancestral property always decreases, with the birth of new members in the family. The same is not true of self-acquired properties, as your ownership in it remains constant.
See also: Who is an heir and what is inheritance?
What is self-acquired property?
A self-acquired property is one that is purchased using funds from one’s own income.
Can my brother claim share in my self-acquired property?
A brother can only claim the share in the ancestral property, as a coparcener and not over your self-acquired property.
Can fathers sell self-acquired property?
Your father can dispose of a self-acquired property as he wants and you and your sisters have no right in it while he is alive.