Four Different Types of Co-Ownership

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Will you be purchasing a home together? Did you know that buying a property with your sibling differs from buying a property with your spouse in terms of ownership patterns? You could find it complicated because there are actually a lot of questions around co-ownership of real estate. For this reason, you need to become acquainted with the many types of co-ownerships that are available. You could avoid confusion in the future by doing this.

There are four main forms of shared property ownership:

Common Tenancy

In this type of property ownership, co-owners don't always make their share clear when they purchase it. They are tenants-in-common, or co-owners. All tenants-in-common will have equal rights over the property as long as they are living. However, ownership of the property would not immediately go to the remaining co-owner in the event of one of the co-owners' deaths. The property will be split in the future in accordance with the provisions stated in the deceased's will.

For example

The sisters Sita, Geeta, and Anita pooled their funds to purchase a property. Many years later, Sita dies, leaving her presumed portion of the land to her adopted son Anil via a bequest. Anil is now able to move into the property as a new tenant in common with the sisters who are still alive.

Joint Tenancy

In order for a joint tenancy to exist, each tenant must simultaneously acquire an equal stake in the property through a single sale deed. The right of survivorship is the foundation for the idea of joint ownership. In the event that one co-owner passes away, the remaining renter immediately inherits the rights to the property.

Nonetheless, it is important to remember that unless co-owners expressly state otherwise in the property documentation, ownership of a certain property will be regarded as a tenancy in common under the law.

As an example

Together, Sita and Geeta purchased a property, making clear that they would be co-tenants. Should a co-owner pass away, the remaining renter will get the entire portion of that person.

Tenancy in Full

Only homes owned by individuals who are lawfully married may have this type of ownership. The entire tenancy is covered by the right of survivorship, which means that if one party dies, the other party will automatically inherit their interest. Similar to joint tenancy, all tenants must occupy the property simultaneously and have an equal interest through a single selling deed. It is also impossible to sell a piece of property without the other's support. In the event of a divorce, death, or mutual consent, the terms of the entire tenancy agreement are broken.

As an example

Ram purchased a home after being married to Geeta. Both of them will be full tenants. His portion of the property will automatically transfer to Geeta in the event of his death. The ownership agreement would become a tenancy in common in the event that the two decided to file for divorce.

Coparcenary 

Only in the situation of a Hindu Undivided family structure is this term valid. This idea, which is comparable to joint tenancy in certain ways, permits an unborn child to own an equal portion of a HUF property. A coparcener acquires ownership of the jointly owned property by a HUF upon his birth. His heirs will inherit his entire portion of the property upon his death, not the other coparceners.

As an example

Spouses Geeta and Ram are expecting a child. This unborn child is entitled to the ancestral property of his father. This child would inherit Ram's whole part of the property in the event of his death.