Partition of a Jointly Owned Property
Jun 02, 2017 Legal Guidance
At some point or the other, co-owners of a property need to divide it and exercise their rights over their share. This is done through a partition deed. The partition deed legally divides the property among the co-owners. Each person becomes the primary owner of their allotted portion in the property. Each part of the property divided, gets a new title and each sharer gives up his/her interest in the property in interest of the other sharers. In other words, the process of dividing a property involves surrender and transfer of rights. The sharer becomes the absolute owner of his portion and can sell, transfer, exchange or gift it at his will.
The partition deed is executed by the co-owners and needs to be registered at the sub-registrar office of the area to make it legal. Getting the deed registered is important even in the case of mutual consent. The co -owners might have equal, or certain percentage of right to own and use the property. One significant issue here is joint ownership of undivided property. A property in which boundaries are not defined, the shares are not physically dividable. This can be resolved in cases where the decision has been made through mutual consent.
There are cases where all the co-owners are not willing to go through with the partition. In such cases, a law suit for partition needs to be filed in the court of law by the person who wants the partition to be executed. A partition deed is made on stamp paper after the law suit is resolved. In order to make the partition legal and binding, this partition deed should be registered at the sub-registrar’s office of the area.
The percentage of share co-owners have in the property is not always equal. The percentage may vary depending on the investment he/she has made as mentioned in the sale deed at the time of purchasing the property. In case, this detail has not been mentioned in the sale deed, it is assumed by law that the co-owners have an equal share.
It is crucial to clearly state the share of investment made by each co-owner. This would make it easier to inherit or transfer the share of a co-owner. The percentage one owns also determines one’s tax liabilities.
The Hindu, Muslim and Christian personal laws also have implications on inheritance of property. This should be kept in mind while deciding on the partition. In the absence of a will, these personal laws are binding over the issues of inheritance of property.
The partition deed is executed by the co-owners and needs to be registered at the sub-registrar office of the area to make it legal. Getting the deed registered is important even in the case of mutual consent. The co -owners might have equal, or certain percentage of right to own and use the property. One significant issue here is joint ownership of undivided property. A property in which boundaries are not defined, the shares are not physically dividable. This can be resolved in cases where the decision has been made through mutual consent.
There are cases where all the co-owners are not willing to go through with the partition. In such cases, a law suit for partition needs to be filed in the court of law by the person who wants the partition to be executed. A partition deed is made on stamp paper after the law suit is resolved. In order to make the partition legal and binding, this partition deed should be registered at the sub-registrar’s office of the area.
The percentage of share co-owners have in the property is not always equal. The percentage may vary depending on the investment he/she has made as mentioned in the sale deed at the time of purchasing the property. In case, this detail has not been mentioned in the sale deed, it is assumed by law that the co-owners have an equal share.
It is crucial to clearly state the share of investment made by each co-owner. This would make it easier to inherit or transfer the share of a co-owner. The percentage one owns also determines one’s tax liabilities.
The Hindu, Muslim and Christian personal laws also have implications on inheritance of property. This should be kept in mind while deciding on the partition. In the absence of a will, these personal laws are binding over the issues of inheritance of property.
Looking for property portal?
Related Articles
-
Tax Liabilities of Reverse Mortgage
Jun 13, 2018 -
What are the Tax Benefits of the Home Buyer?
Jun 12, 2017 -
What to Do If Tenants Are Not Leaving Your Property
Apr 26, 2016 -
Taxes and Penalties Related to Benami Properties
Jun 13, 2018
See comments (0)
Write a comment
