When a single person owns a property, it is referred to as sole ownership; however, when multiple people own the property, it is referred to as joint ownership or co-ownership. The transition from co-ownership to sole ownership can be achieved through partition. Often, a property’s co-owner is typically a member of the same family. Designation as a co-owner can be done through a will in the individual’s favour.
Types Of Ownership Under Co-Ownership:
Given the broad nature of the term “co-owner,” it can encompass various ownership types such as joint tenancy, tenancy in common, Coparceners, and undivided Hindu family members. Co-owners have the rights of possession, enjoyment, and sale under Indian law. The term co-ownership is used interchangeably with joint ownership.
Types of co-ownership include:
1. Tenants in Common: Co-ownership without clear delineation, where each tenant holds a fractional part of the entire property. Upon the death of a tenant in common, their interest passes to another person, not necessarily a co-owner.
2. Joint Tenants: Co-ownership with the right of survivorship, where the share of a deceased joint tenant passes to the surviving co-owners. Joint tenants must have equal ownership shares and meet specific criteria.
3. Tenancy by the Entirety: Co-ownership designed for married couples, providing survivor’s benefits and requiring unity of time, possession, title, interest, and marriage. Termination can occur due to divorce, death, or mutual agreement.
4. Coparcenary: Specific to Hindu Undivided Families (HUF), this concept allows even unborn children to have an equal share. Upon birth, the child becomes a co-owner, and when a coparcener passes away, their share goes to their heirs, not to other coparceners.
Transfer By One Co-Owner:
Section 44 of the Transfer of Property Act of 1882 addresses the transfer of shares by one co-owner. When a co-owner legally transfers their share, the transferee assumes the transferor’s rights and obligations in the joint property. The transferee has the right to joint possession and common enjoyment but not exclusive possession until the property is partitioned. This provision aims to deter strangers from purchasing a co-undivided sharer’s share and allows non-selling co-sharers to buy out stranger purchasers.
Section 47 states that when co-owners transfer a share without specifying individual shares, the transfer takes effect equally on all shares. This principle is based on the concept of subrogation and substitution, providing the transferee with all the transferor’s rights upon the transfer of immovable property, considering the shares’ proportionality.
Done By: Adithya Menon, 5th year B.A, LL.B(Hons.)
Veltech School of Law, Chennai
For Origin Law Labs
