What is meant by co-ownership of property?
Co-ownership or joint ownership means that two or more persons hold title to the same property.
What are the types of co-ownership?
Tenant in Common: When two or more people buy a property but do not specifically mention each’s share in the property, ‘tenancy-in-common’ exists. All co-owners can use the entire property and each co-owner is considered to have an equal share in the property.
Joint Tenancy: Joint tenancy is a form of co-ownership where equal shares of property are owned by two or more persons at the same time. This type of tenancy provides property ownership rights for co-owners that outlive the other co-owners.
Tenancy by whole: This is a special form of joint tenancy when there are joint tenants i.e. husband and wife – each having a half share.
Why is co-ownership better?
If you are a married couple, there are many benefits to building a home with your spouse. Both can get tax benefits. In case of joint ownership, the husband, as well as the wife will be able to individually claim deduction under section 24 of the Income Tax Act. The deduction available to each individual is 1.5 lakh for principal under section 80C and 2 lakh for interest component under section 24(b).
What are the rights of a co-owner?
The co-owner is entitled to three essentials of ownership: the right of possession, the right to use, the right to dispose of his share of the property if expressly stated in the property.
What are the laws related to transfer of property by co-owner?
Section 44 of the Transfer of Property Act 1882 deals with transfer by co-owner and also deals with the rights of the transferee in such transactions.