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The Difference Between Co-ownership and Joint Property Ownership?

Real Estate » The Difference Between Co-ownership and Joint Property Ownership?

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Owning a property, as rewarding as it is, comes with its own set of headaches. Most people usually buy or rent a property in our country in collaboration with another or more people. Now there are various types of agreements that two or more people can enter into when they own a property together. The laws that govern property transfer differ slightly for different agreements, two of which are owners/tenants in common and joint property ownership.

Why should that bother you, you wonder? Lots of people in our country get swindled in property deals. Whether they are buyers or heirs, there is a high chance that someone might take an interest in their good fortune. It is no wonder that the majority of the pending cases that play a part in making our Indian Judicial system one of the most inefficient by reputation are property cases. Hence, you see most big families always have a property lawyer at their call.

This blog discusses the difference between two of the most common types of co-ownership agreements under which people share their rights to immovable property. Read on to understand the difference, so that you can have enough knowledge to call your property lawyers in Chandigarh if someone tries to take advantage of you over a piece of land.

Co Ownership Meaning

When two or more people own a property together, it is called co-ownership. These properties are called jointly-owned properties. These parties owning the property together could be business partners, friends, family, or another group of people having common interests. When the two people sharing co ownership of property are husband and wife, the marital version of joint ownership of assets applies.

Types of Co-ownership

There are 4 types of joint ownership or co-ownership of property in India, which differ mainly on the basis of co owned property rights. They have been listed below:

  • Joint Tenancy
  • Tenancy in Common
  • Coparcenary
  • Tenancy in Entirety

Joint Property Ownership

Also more commonly known as joint tenancy, this is a very attractive form of co-ownership, common among long-term partners. This type of ownership hinges on the unification of the parties’ unification of interests, rights, and responsibilities. Joint tenancy entails the right to survivorship, which means when one tenant dies, their rights go to the other tenants who survive.

It, however, requires a bunch of conditions, which we’ve listed below:

  • A joint tenancy can only be created through a will or deed
  • The joint tenants must have unified interest in the entirety of the property and not divided interests in separate parts
  • The document that creates the joint tenancy must in clear language convey the intent to create an estate in joint tenancy
  • The joint tenants must vest their interest at the same time
  • Each joint tenant must have estates or shares of the same type and duration.

Also Read: Common Joint Property Disputes and How to Resolve them?

Tenancy in Entirety

This is a type of joint tenancy that requires the condition of marriage and as such is most common between husband and wife. The rights of the property transfer to the previous spouse in the event of the demise of the other. The joint ownership stands altered however if the spouses mutually file for an alteration or a divorce.

Tenants in Common

This type of co-ownership is the more common one. In a tenants-in-common agreement, all the co-owners have equal rights to use the property while they are alive, though they may have different shares in the property. However, the co-owners in this type of agreement do not get the right to survivorship. When one co-owner dies, his share goes to his heirs, not the other co-owner/s. That heir then becomes a co-owner with the surviving co-owner/s.

However, it is to be noted that the tenant in both these types of co-ownership is not to be confused with the tenant paying rent to a landlord, as that is governed by a different law than the co ownership property law.

Also Read: What is Rent Control Act of India?

Co-Owners Property Rights

Section 44 of the Transfer of Property Act lists three rights that a co-owner of a property might enjoy. These rights are listed below:

  1. Right to possession
  2. Right to use
  3. Right to dispose of the share

However, some of these rights may be restricted in some cases where the co-owners have previously agreed to the same. For example, the sale of shares of one co-owner may be subject to the consent of the other joint owners.

Why is Co-Tenancy the Default?

When a deed does not specifically state the shares of the partners or any instance of joint tenancy, then it is automatically assumed to be a tenancy in common. There are many advantages to this approach. This contract allows for any of the co-owner to transfer his/her share to a third party without hassle. Also, when a co-owner passes away, their share can pass equally to both their male and female heirs, who can also choose to sell those if they want.

Conclusion

While there are a few more kinds of property co-ownership in India, the two most common ones differ only in terms of the right to survivorship. While joint tenancy guarantees the right to survivorship to the co-owners, tenancy in common does not provide that right. Instead, it provides for the transfer of the right of ownership to the heirs of the deceased.

Lex Solution has some of the best property lawyers in Chandigarh, in case you might have been thinking of getting a property lawyer of your own, just to be on the safe side. Even if someone you know is tangled up in a property transfer case, with a basic understanding of the difference between two of the main types, you might be able to tell them if they need a lawyer.

FAQs

1. What is meant by Coparcenary?

Coparenarcy is a form of ownership among members of Hindu Undivided Families (HUFs) which is governed by the Hindu Succession Act of 1956. This type of joint ownership allows the unborn child to have equal shares in a property owned by the HUF.

2. What is the advantage of jointly owning a property?

There are many advantages to owning a property jointly. The most obvious among them are cost-effectiveness and tax benefits in the case of a home loan.

3. What are the units that need to be shared by the co-owners in joint property ownership?

The four units that need to be shared by all the co-owners in joint property ownership are the units of time, possession, title, and interest.

4.Which unity is required to form tenants in common?

To form a tenant in a common agreement, only the unity of title is necessary.

According to estimates, 65% of people living in urban areas around the world are tenants. This is also true in India due to the sky-high prices of real estate in the major cities and the large population of migrant workers who live there. Nevertheless, living as a renter can be a peaceful arrangement, but occasionally there are situations where one can run into rental problems and other connected issues, such as receiving an unauthorized eviction notice or the erratic behaviour of the landlord.

Are you, however, a renter who is experiencing such problems or simply curious about what to do if you ever find yourself in a similar situation? In that case, allow us to help you through this blog, which will briefly discuss about the several protections against landowner harassment.

What does illegal eviction of tenants mean?

An illegal eviction, also known as an unlawful termination of tenancy, typically happens when a landowner forbids a tenant from entering a rental property or removes the tenant’s belongings from the property through the use of force, intimidation, or other methods (such as cutting off utilities or changing the locks). However, if the landowners evict you without taking the proper legal action, they are breaking the law.

How Do You Respond When Your Landlord Forcibly Evicts You?

Almost every state has rental control legislation pertaining to tenant protection, and each state has established specific circumstances for which the landlord may lawfully evict the renter. Additionally, a tenant has a legal right under the law to appear in court and defend himself against unlawful eviction, and some of those accessible remedies for tenants are discussed below:

Grounds for eviction

Non-payment of rent, breach of the lease, property damage, and illegal activity are the most typical grounds for evicting a renter. The tenant must therefore review the provisions of the State Rent Control Act to ascertain the grounds for eviction specified in the Act. In addition, if the tenant is being evicted for any reason other than those specified in the Act—which is considered wrongful eviction—they must seek the help of an eviction lawyer and the enforcement agencies to halt this.

Suit for injunction

A renter might be unable to leave a property when asked to do so for a number of reasons, such as having a medical emergency or having his elderly parents live with him. When this happens, the tenant has the option to file a case in the appropriate court to obtain an injunction that will prevent them from being evicted for any other grounds (other than those listed in the State’s Rent Act). Along with the assistance of housing rental lawyers, the renter should take this action, if they are violently evicted without providing them with adequate notice.

Rent Controller

In the event that the tenant receives a notice of eviction on pretences, they should go see the rent controller of the relevant jurisdiction and explain why they believe the notice of eviction is invalid. Additionally, following the tenant eviction laws, the court will summon the tenant, who will then be forced to submit his or her case and the arguments supporting the necessary evidence.

Notice of rent payment

If the landowner claims that he has not received the required rent and lists this as the reason for serving the notice of eviction, the tenant may legitimately ask him or her to send the information to his bank account so that he can conduct the transaction and deposit the outstanding rent. Moreover, after agreeing to it, the landowner must give the tenant the information within 10 days of the date they received the notice.

Also Read: Lex Solutions – Your One-Stop Destination For All Things Legal

Steps that you must follow to legally evict a tenant in India

Because eviction laws differ from state to state, the following are typical recommendations for evicting a renter. Nevertheless, you can contact the tenants lawyer of Lex Solutions if you need any assistance.

Serve the Tenant With a Termination Notice

The tenancy must be terminated before a landlord can evict a tenant for cause, and the landowner shall provide the tenant with the required notice before taking legal action to do so. Three different kinds of termination notices are generally available:

  • Pay Rent or Quit: The tenant is required to pay the rent within a predetermined period (often three to five days) or leave the rented property.
  • Cure or Quit: A breach of the rental agreement or lease must be remedied by the tenant within a set amount of time.
  • Unconditional Quit: Without a chance to correct the offense or pay the rent, the tenant must leave the property.

But to evict a tenant without good reason, the landlord must give the renter a 30- or 60-day notice to leave the premises.

File an Eviction Lawsuit

If the renter does not correct the issue or quit the property within the allotted time, the landowner must initiate an unlawful detainer case in small claims court. Following this, landlords have the right to evict tenants by serving a legal notice to tenants to vacate their premises.

Wait for the Tenant’s Answer

Within the time frame given on the summons, the tenant may “answer” the complaint. The renter may, however, use the response to refute the charges or present a defence. And, for instance, a tenant might claim that the eviction was carried out in retaliation or that the unpaid rent was used to pay for repairs the landlord refused to undertake.

Receive a Judgment for Possession

A default judgment is granted to the landowner if the tenant ignores the eviction notice India. Moreover, the landowner is entitled to take ownership of the property if the renter replies with an answer but the court rules in his or her favor.

Remove the Tenant

Despite having the right to reclaim the property, the landlord is unable to evict a renter without the help of a law enforcement official. Nevertheless, the tenant will be informed of the legal eviction and the number of days they have to leave once such an official receives the judgment and the cost. Moreover, the law enforcement authority may physically evict the tenant if they don’t leave the property in the allotted period.

Also Read: Introduction To The Indian Judicial System And Court Hierarchy

Summing Up

Now that you are aware of the characteristics of evictions and how to deal with them in a nation like India, you must use them as needed. Additionally, as a landowner, you must evict a problematic renter per the law. And, to ensure that you are acting legally, consult a local landlord-tenant law attorney in your area. For such assistance, a legal firm in Chandigarh, lexsolution can offer you a one-stop solution.

FAQs

  • Can a tenant seek an injunction against the landlord?

According to the state rental rules present in India, a tenant does not have the right to issue an injunction against the landlord. Moreover, injunction procedures are always discretionary, and a court of law cannot grant a perpetual injunction in favour of the plaintiff against the right owner if the plaintiff is only a trespasser.

  • Can police evict a tenant in India?

Even if the renters behave disrespectfully, the police cannot assist in reclaiming the property. However, the only court with the authority to order the eviction of a tenant is the court of the rent controller under whose jurisdiction the property is located. 

  • When a tenant can get the benefit of protection against eviction?

If the tenant can show that the landlord gave his written approval to the subtenant, he is entitled to protection from eviction. Additionally, it disallows any other consent, including implied or oral permission.