A property can be owned in one of two ways: as a sole owner or jointly with another individual. Both of them can be legal owners of the property. There are, however, numerous additional types of joint property owners who are the legal owners of the property, which we shall discuss in detail in this essay.
We’ll also look at how each kind of property ownership and who is the legal owner of the property impacts the owners’ and joint owners’ rights and duties.
Types of the legal owner of a property
Individual ownership/ sole ownership of property
When a property is acquired and registered in a single person’s name, that person is the only legal owner of the property. “Single ownership” or “individual ownership” are terms used to describe individual property ownership.
Those who assisted the owner in collecting funds for the property purchase have no rights to the property if the sale deed is solely recorded in the name of the major buyer. Here’s an example of what I’m talking about.
Assume a buyer has enlisted his wife’s assistance in securing a down payment for a property. Assume he adds his wife to the house loan application as a co-applicant. The property is eventually registered in the husband’s name. The property would be entirely held by the husband in this case, and he would be the legal owner of the property. The fact that the property is wholly owned by the spouse will be unaffected by the present inheritance rules of India.
Advantages of owning a single property title
- Individual ownership benefits the owner in a number of ways. They are the legal owner of the property who can decide whether or not to sell the property.
- If the husband sells his house, being the sole legal owner of the property, he is not legally compelled to take his wife with him. He is free to decide what to do with his property. While the wife is entitled to a percentage of the sale income, it is irrelevant to the legal requirements whether or not she consents to the sale as she is not the legal owner of the property.
- There would be no need to obtain permission from anybody else when they’re only a single owner of the property.
- It is also easier to split such a property because there are fewer owners. When the owner passes away, his assets are divided according to his will. If there is no will (this is known in legal terms as the owner dying intestate), inheritance rules will apply, and the property will be split among the late owner’s lawful heirs, and now they would become the legal owner of the property.
Joint ownership/ co-ownership of property
Joint ownership refers to when an immovable asset is registered in the names of numerous persons. Both of the joint owners are the legal owners of the property. Persons who share ownership of an immovable asset are known as co-owners.
It’s important to remember that there is no legal distinction between joint and co-ownership of property, and the phrases can be used interchangeably. Co-owning a home may be done in a variety of ways.
Joint tenancy occurs when a property’s title deed is based on the concept of unity and assigns each joint owner an equal share of the property. Both of them are the legal owners of the property.
Tenancy in its entirety
The most basic kind of joint ownership is that between married people. In this arrangement, couples share ownership of a property in which both of them are the legal owners of the property.
If any of them wants to modify anything concerning their share, they must first obtain the approval of the other. If one of the partners dies, the remaining partner will be the legal owner of the property.
Tenancy in common
It’s a form of joint ownership in which two or more persons share property ownership but don’t have equal rights. However, all of them are considered the legal owner of a property.
Because Hindu law does not allow for various forms of joint ownership, the Hindu Succession Act, 1956, establishes the coparcenary form of ownership among members of Hindu Undivided Families (HUFs).
Every coparcener is born with a coparcenary property interest. This notion, similar to joint tenancy, allows a kid who has yet to be born to have an equal part in a HUF property. Every coparcener is the legal owner of the property.
You own a piece of real estate with fractional ownership. The agreement deed is with you. This keeps the rates cheaper than complete ownership, but you still have access to the property if you’re comfortable with the sharing agreement. The person having possession of the deed is also the legal owner of the property.
Property ownership by nomination
When a property owner dies, he can nominate someone to inherit his immovable property and other assets. Property nomination is also popular among property owners since it informs the landlord to ensure that the property is not left unclaimed or vulnerable to a lawsuit when he passes away. The nominated person is the legal owner of the property after the death of the owner.
Cooperative housing organizations that require members to designate someone when seeking membership use this sort of property ownership. The cooperative housing organization transfers the property title to the nominee in the event of the owner’s death. Legal advice on the property must be taken to know the procedure of nomination.
The blog deals with the concept of the legal owner of a property. A person can legally own property in any of the above ways. It is often recommended that legal advice on the property must be taken to draft a sale deed. Also, when it comes to the drafting of a will, an expert must be consulted to make your task easier.