Ashish wanted to buy a home in Bangalore. Though he wanted it in central inner-city location, all property prices were exceeding his budget, and he did not want to shift to the far-off suburbs. So, he decided to co-own the property with his college friend Gaurav, who was also looking for a similar property. Both of them were aware of the importance of legalising their agreement and so they hired a lawyer to discuss the terms. They were surprised with the legalities involved in a co-owning agreement.
So, if you are also thinking of pooling in your funds for a joint ownership, this is what you should learn from Ashish and Gaurav.
What is Joint Ownership?
Joint ownership, also known as co-ownership, is when two or more people have rights over the same property. All co-owners hold title to the property, according to the agreement. Majorly, there are two types of co-ownership- Joint Tenancy and Tenants-in-common. In case of joint tenancy, all parties have equal rights over the property and it provides rights to ownership of the property for the co-owners who outlive other co-owners. When one co-owner dies, his rights are automatically passed on to other co-owners equally. Whereas in case of tenants-in-common agreement, the shares of co-owners are not specifically mentioned. And unlike joint tenancy, the deceased person’s share passes on to whomever that person named in his or her will. [Read more…]