Shared ownership means that two or more persons share the ownership of the property. All the persons are co-owners and have:
- Right to possession
- Right to transfer the property share
- Right to use the property.
A co-owner has the right, title, and interest in the property of shared ownership. The share of each co-owner is transferrable.
Shared ownership can be in the form of tenancy in common, joint tenancy, tenancy in entirety, co-owners as coparceners, etc.
Transfer of property:
A co-owner can transfer his share by executing a transfer deed. The share can be transferred to a stranger or other co-owner. The share is transferred through a transfer deed, which can be a sale deed, gift deed, relinquishment deed, etc. The same is drawn as per the rights available in a particular type of shared ownership.
It is advised to take the assistance of a property attorney or a civil lawyer handling property matters to draft the transfer deed.
The partition is not necessary for the transfer of a share, but it is essential to know the extent of the share as a co-owner can transfer only his share. The share of each co-owner must be defined, explicit, and identifiable without any ambiguity. All co-owners may not have equal shares.
The co-owners can identify their share as permitted under the applicable law (also depends on the nature of shared ownership) in two ways:
- By mutual consent
- By filing a partition lawsuit in India -If the co-owners are unable to decide their share mutually or if only one co-owner seeks partition and others resist, a partition lawsuit is filed for determining the share of each co-owner.
For transferring the share, it is not necessary that:
- There is the consent of all the co-owners. If permitted under law, a co-owner can transfer his share without the consent of all others. In some kinds of shared ownership, the consent of all co-owners is required.
- There is a partition of property- The share can be transferred even if the property has not been partitioned. But each co-owner must be clear about his share irrespective of partition deed. In a joint family, there may be a family settlement deed defining the shares. This document can also help the transferee to understand the transferred share.
The transferee steps into the shoes of a co-owner, and his rights are subject to provisions of law.
After the partition of property, the shared ownership comes to an end. Each co-owner becomes an independent owner of his share and can sell, mortgage, and gift his share without others’ consent.
All the co-owners have a right to possession of the property. A co-owner’s exclusive possession of the entire property is not adverse to other co-owners. The rest of the co-owners still have a right to possess. Their share in the property exists, and they can transfer the same.
After the transfer of a share, it is vital to get the mutation records updated in the transferee’s name and new co-ownership.
Meta Description: It is advised to take the assistance of an experienced property attorney to transfer property in shared ownership through a mutually consented transfer deed or filing a partition lawsuit.