Buying a property jointly with your parents is quite common in India. This is done sometimes purely for an emotional reason and often due to financial matters. In case a parent is helping you with the down-payment for the house, you feel obliged to make them the joint owner of the property, for instance. You may also join forces with your parents to increase your borrowing capacity.
No matter what your reason is for this joint ownership, you must be aware of the following legal-financial repercussions of buying a property jointly with your parents.
Home loan: Even if you are solely responsible for repaying the home loan, you can never claim the entire property, to be clear. Unless the share is specified in the sale deed, your parents will have half a share in the property.
Property division: This property will be considered a self-acquired property of your parents, whatever their share in it. They are free to use a Will and give their share to anyone they want. In the event of their demise intestate, their share will be divided according to the laws of inheritance applicable according to your religion.
Property sale: Joint properties can’t be sold without the co-owners having a complete agreement over the future sale. In case there is any disagreement between you are your parents, selling the property would become quite difficult.
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