Types of joint ownership of property

Property | admin | August 10, 2011 at 8:49 am

When two or more people buy a property but do not specifically mention the share that each has in the property, they have a 'tenancy-in-common'. All co-owners can use the entire property and every co-owner is deemed to be having an equal share in the property. If one of the co-owners dies, his share in the property does not pass to the other co-owners but to the person named in the will of the deceased. The inheritor becomes a tenant-in-common with the other surviving co-owners. This is usually when siblings pool money to buy property.

Joint tenancy

If the property is owned by two or more persons at the same time in equal shares, it is a joint tenancy. But unlike tenants-in-common, when one joint tenant dies, his share automatically passes on to the surviving joint tenant(s). However, all the co-owners should have taken possession of the property at the same time in the same deed and with equal interests.

Tenancy by entirety

This is a special form of joint ownership by the husband and wife, with each owning one-half of the property. Neither spouse can sell the property without the consent of the other. Like in case of joint tenancy, on death of one co-owner, the share of ownership automatically passes on to the surviving co-owner. Apart from having acquired the possession at the same time and in the same deed, the two co-owners must also be married. This can be terminated only by divorce, death or mutual agreement of both spouses. However, such a termination will result in the type of ownership to be converted to 'tenancy-in-common'.

Co-parcenary

Co-parcenary is somewhat similar to joint tenancy but is possible only in a Hindu Undivided Family (HUF) structure. The co-parcenary ownership is governed by the same laws that apply to HUFs. A coparcener, owing to his birth in the family, becomes a shareholder of the joint family property. Even an unborn child has equal right to the HUF property. On the death of a co-parcener, his undivided share in the property passes on to his heirs and not to the other co-parceners.

Source: Economic Times