Ownership Rules in India: Deciding Owner’s Name Requires Special Care
Deciding on the name of the property owner can be a complex task. From the following discussions, you can get an idea of the rules related to inheritance of property in India.
individual property
It means that only one person has the authority to sign a deed to sell, rent or lease a property and no one else can do the same with the property.
Normally, there is no possibility of conflict in the transaction of individually owned properties. But the fact that the owner does not stay in the same city can lead to problems. In such cases, a trusted person may be granted a power of attorney to manage and make decisions on matters related to the property.
The owner can decide his successor to the property and make a will in favor of the successor accordingly.
Religion can influence personal law, which takes effect in case of unavailability of a will, and it is best to consult a lawyer to be clear about the merits and demerits of such laws.
Different religions are subject to different Succession Laws. The Indian Succession Act outlines the laws relating to Christians, Jews, and Parsis, while the Hindu Succession Act describes the laws applicable to Buddhists, Jains, and Hindus. However, according to Muslim law, the owner has the right to give only one third of his property to the successor and the rest will go according to Muslim law, which has other divisions according to different sects.
co-ownership
In Joint Ownership, any of the owners has the right to decide on a property, and the need for a power of attorney is eliminated in the absence of one of the owners. The surviving owner becomes the sole owner of the property upon the death of the other owner. Therefore, the surviving ship and safety come automatically. Even not making a will makes no difference to joint ownership.
Joint ownership requires the signature of both owners to sell or remove their names from the property. Therefore, it is difficult to reverse the sole proprietorship decision after making a joint ownership deed.
In the event of a permanent division such as divorce, each owner will have an equal share of the property. But if the property is bought or built on the investment of one of the owners, then the person can file a case showing all the details of his investment requesting sole ownership of the property in court.
co-ownership
Co-ownership secures the corresponding share of ownership of each owner’s investments. Therefore, having joint ownership of a property is a wise decision if two people are investing in it. The part of the property can depend on the investments of the co-owners. If the ownership percentage is not specified in a co-ownership deed, the equal share will go to each owner.
Each of the co-owners can have a separate co-ownership agreement establishing their share in the property, which helps avoid legal complications in the event of separation between the co-owners, and each of the owners can decide successors for their respective Actions.
Nomination
This option is intended for apartments in cooperative societies. The nominee can never be proclaimed owner. Upon the death of the original owner, until and unless the nominee is named as successor, he or she cannot become the owner of the property.
A nominee becomes a member of the partnership and nominal owner after the owner’s death, but the person named in the will becomes the ultimate beneficiary.
lessons to learn
It is advisable to write a will immediately after purchasing a property.
You can give a trusted person power of attorney for your individual property.
Think wisely before making someone a co-owner.
Having co-ownership is a wise decision for your investment in the purchase of a property.
Write a will naming the successor of your part in case of co-ownership.
It is always best to make separate wills naming the successor, even if the joint owners decide to give their share to the same person.
In Goa, under Portuguese law, the wife owns 50% of her husband’s property and vice versa.
