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Co-ownership Agreement for Joint Ownership

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Co-ownership Agreement for Joint Ownership

Last updated: April 18 2015
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  • Co-ownership Agreement for Joint Ownership

    Suppose a husband and wife buy a flat jointly. Suppose husband pays 75% and wife pays 25%.

    Can a proportional ownership be registered? Will it be in the deed itself or will it be a separate agreement? If separate, then what kind of registration and costs are we talking about? If the flat is a booking, then does one have to wait bfore all payments are made - since only after final payment will the exact percentage paid by husband and wife will be known.

    Has anyone else done something like this?

    I know the capital gains will be done separately - will rent received also be taxed separately? What about the standard 30% deduction? Also who pays the maintenance?

    Will Bombay societies take cognizance of the terms of the co-ownership agreement?
    Venky (Please read watch a or before posting)
  • #2

    #2

    Re : Co-ownership Agreement for Joint Ownership

    No answers?

    I have one more query regarding property bought jointly with wife, which is common nowadays.

    After death of one spouse the other spouse automatically gets the whole house is co-owners. Now after that, can that surviving spouse will the house as he or she pleases? Normally only assets which are self acquired can be willed. Inherited property has to be passed on as per Hindu Succession law. Since the surviving spouse got the house by inheriting the flat - assuming spouse dies intestate - is he or she free to will it?

    If first spouse before dying had willed his portion of the house to one child, is it necesssary to get the house ownership mutated? Or can the other spouse also will her share to the same offspring and a single mutation can be done after both spouses are no more?

    The reason I am asking is that assuming multiple flats are bought jointly - it might be difficult to will the flat. Passing on house by will which entails no stamp duty is very efficient. If houses are all jointly inherited between siblings - it will become necessary to have multiple gift deeds between the siblings, each of which might attract stamp duty, at least in Bombay (I think Gift of property between blood relatives is free of stamp duty but Bombay seems to have some laws - some 1% or 2% stamp duty at the circle (ready reckoner) rate would be needed?
    Venky (Please read watch a or before posting)

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    • #3

      #3

      Re : Co-ownership Agreement for Joint Ownership

      Venky...its really very complicated issue. Once I also thought in this direction to purchase a flat with my cousins..but my experience is that it is better not to purchase a property with blood relatives. There is a priverb in hindi that "sajhe ki tau ma bhi khoti hoti hai" i.e. even a mother if shared between their sons is very critical and result is not so sweet....
      Legally I have no knowledge in the matter.
      Regards

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