Characteristics:
- Equal shares (presumed)
- Right of survivorship
- All owners have equal rights
- Unity of time, title, interest, possession

On Death:
- Share passes to surviving owner(s)
- NOT to legal heirs
- Automatic transfer
- No succession/will applicable

Characteristics:
- Shares may be unequal
- No right of survivorship
- Each can sell/transfer their share
- Each can will their share

On Death:
- Share passes to legal heirs
- Or as per will
- Not to co-owners automatically
- Succession applies

General Rule:
In India, default is Tenancy in Common

Joint Tenancy:
- Must be explicitly created
- Specific wording required
- Survivorship clause needed

Check Your Deed:
- See how ownership is defined
- Look for survivorship clause
- Default: shares inherit-able

When Buying Property Together:

Sale Deed Should Specify:
- Names of all co-owners
- Share of each (if unequal)
- Nature of ownership
- Whether survivorship applies

Example Wording:
"A and B, as joint owners with equal 
shares, with right of survivorship..."

Methods:
1. Gift Deed:
   - Transfer part ownership as gift
   - Stamp duty applicable
   - Registration required

2. Sale Deed:
   - Sell portion for consideration
   - Stamp duty on sold portion
   - Capital gains for seller

How It Happens:
- Multiple heirs inherit together
- Ancestral property
- When no partition done
- Co-ownership by operation of law

Each Co-Owner Can:
- Use entire property
- Access all parts
- Cannot exclude other owners
- Shared possession

Income from Property:
- Rent divided per ownership
- Sale proceeds per share
- Improvements may adjust

Your Share:
- Can sell your share
- Can mortgage your share
- Can gift your share
- Cannot transfer others' share

Entire Property:
- Requires all owners' consent
- All must sign sale deed
- One cannot sell whole

Any Co-Owner Can:
- Demand partition
- Cannot be denied
- Get share separated
- Become sole owner of portion

Property Expenses:
- Property tax
- Insurance
- Repairs and maintenance
- Security/staff
- Utilities (common areas)

Division:
- Proportionate to ownership
- Or as mutually agreed
- Document the arrangement

Joint Liability:
- Property tax dues
- Legal violations
- Encumbrances
- Third-party claims

One owner's default may affect all

Good Practice:
- Maintain expense records
- Track contributions
- Annual settlements
- Written agreements

1. Sale/Gift/Partition Deed:
   - Shows ownership
   - States shares
   - Names all owners
   - Registered document

2. Co-ownership Agreement:
   - Rights and responsibilities
   - Decision-making process
   - Exit provisions
   - Dispute resolution

Should Cover:
□ Names and shares
□ Property details
□ Purpose of ownership
□ Usage rights
□ Expense sharing
□ Decision making
□ Sale/transfer rules
□ Right of first refusal
□ Partition terms
□ Dispute resolution
□ Exit mechanism

Usage Clause:
"All co-owners shall have equal right to 
use and occupy the property. If rented, 
rent shall be divided in proportion to 
ownership shares."

Sale Clause:
"No co-owner shall sell, transfer, or 
encumber their share without first 
offering the same to other co-owners 
at fair market value. Other co-owners 
have 60 days to exercise this right."

Expense Clause:
"All expenses including property tax, 
maintenance, insurance shall be borne 
by co-owners in proportion to their 
ownership shares, due within 15 days 
of demand."

Responsibility:
- All owners jointly liable
- Authority can recover from any
- Internal arrangement doesn't affect
- Pay together or designate payer

Assessed To:
- Names of all owners
- Or "X and others"
- Ensure all names recorded
- Avoids confusion later

Taxability:
- Each owner taxed on their share
- Declare proportionate income
- Claim proportionate deductions

Example:
Rent: ₹1,20,000/year
50:50 ownership
Each declares: ₹60,000

If Living Together:
- Both can claim benefit
- Proportionate to ownership
- Interest deduction shared

If One Lives, Other Doesn't:
- Occupied owner: Self-occupied
- Other: Deemed let out

When Sold:
- Each owner has separate capital gain
- Proportionate to ownership
- Each can claim exemptions
- File separate returns

1. Usage Disputes:
   - Who uses property
   - Exclusive possession claims
   - Interference with use

2. Expense Disputes:
   - Non-payment by co-owner
   - Disproportionate spending
   - Unauthorized expenses

3. Sale Disputes:
   - One wants to sell, other doesn't
   - Valuation disagreements
   - Buyer preference

1. Mediation:
   - Neutral mediator
   - Cost-effective
   - Preserves relationships

2. Partition:
   - Physical division
   - Or sale and division of proceeds

3. Buyout:
   - One buys others' share
   - Agreed valuation

4. Court:
   - Partition suit
   - Injunctions
   - Last resort

Process:
1. File suit in civil court
2. Court determines shares
3. Commissioner appointed
4. Property divided or sold
5. Proceeds distributed

Time: Often 3-10 years
Cost: Legal fees + court costs

Options:
1. To Co-Owner:
   - Usually preferred
   - Right of first refusal
   - Avoids complications

2. To Third Party:
   - Buyer becomes co-owner
   - May face resistance
   - Price may be lower

Physical Partition:
- Property divided
- Each gets portion
- Separate deeds created
- Works for large properties

Partition by Sale:
- Entire property sold
- Proceeds divided
- When physical division impractical

Structure:
- Valuation mechanism
- Payment terms
- Timelines
- Default consequences

Valuation Methods:
- Government guidance value
- Independent valuation
- Average of multiple valuations
- Agreed formula

Husband-Wife Ownership:
- Very common in India
- Tax benefits for home loan
- Succession simplified
- Relationship protection

1. Home Loan Benefits:
   - Both claim interest deduction
   - Both claim principal (80C)
   - Higher combined benefit

2. Capital Gains:
   - Split gains
   - Lower tax bracket benefit
   - Double exemptions

Things to Think About:
- What happens on divorce?
- Death of one spouse?
- Contribution to purchase?
- Source of funds documented?

Reasons:
- Family property
- Care arrangement
- Tax planning
- Succession planning

Potential Problems:
- Other heirs' claims
- Parent's changing health
- Changed intentions
- Documentation gaps

Steps:
- Clear deed language
- Co-ownership agreement
- Parent's will addressing
- Family discussions

Considerations:
- Exit mechanism crucial
- Clear profit sharing
- Decision authority
- Dissolution terms

Investment JV Agreement:
□ Investment amounts
□ Ownership percentages
□ Management responsibility
□ Profit/loss sharing
□ Decision making
□ Capital calls
□ Exit options
□ Dispute resolution
□ Buy-sell provisions

Yes, But:
- Minor can own property
- Cannot sign deed
- Natural guardian signs
- Court permission for sale

Until Majority:
- Guardian manages
- Can't sell without court
- For minor's benefit only
- Accounting may be needed

NRI Can:
- Own residential property jointly
- Inherit agricultural land
- Joint account for funds

Restrictions:
- Agricultural land (purchase)
- Check FEMA rules
- Repatriation procedures

Joint Account Types:
- NRE (both NRI)
- NRO (NRI + Resident)
- For property income/expenses

Before Buying Jointly:
□ Why joint ownership?
□ What shares?
□ Contribution documented?
□ Co-ownership agreement?
□ Exit strategy defined?
□ Survivorship or inheritance?
□ Usage rights clear?
□ Expense sharing agreed?
□ Decision process defined?
□ Dispute mechanism in place?

1. No Written Agreement:
   - Relying on verbal understanding
   - Family assumptions
   - Future disputes

2. Unclear Shares:
   - "Joint" without percentages
   - Contribution not documented
   - Valuation disputes

3. No Exit Plan:
   - Stuck with unwilling co-owner
   - No buyout mechanism
   - Partition forced

4. Ignoring Tax Implications:
   - Unexpected tax liability
   - Missed deductions
   - Capital gains surprise