What happens to a jointly owned property if one owner dies in India?

The property division or transfer is a painful process especially when it is exercised in an event of loss of a loved one. In India, owning a property in joint ownership is quite common. When in this transaction, you may come across a situation where you will ask what happens to a jointly owned property if one owner dies in India. If you have a similar concern, this answer is for you. Find out what happens if a co owner dies in India in a jointly owned property arrangement. What happens to a jointly owned property if one owner dies in India? So when a property is owned jointly, and it is a ‘tenancy-in-common’ arrangement, in such a case a co owner dies, his or her share of property DOES NOT go to the co owners automatically. The share of the property is transferred to the legal heirs of the deceased co owner. Therefore, the inheritor becomes a tenant in common with the surviving co owners. If the property is in a joint ownership arrangement where there is no arrangement as ‘tenancy-in-common’ then the property is transferred to the surviving co owners. However, all the co owners must have taken the possession of property at the same time and signed the deed at the same time. This is what happens to a jointly owned property if one owner dies in India. I hope I was able to answer your question.

Hey there,

I understand how painful it is to go through the loss of a loved one in your family. But what I personally found more painful was deciding who the

joint property ownership on death of that loved one who was also one of the owners of the property. Although this is a very crucial task at hand when you think of it practically, but emotionally you feel more drained out. But that is what life is. It tests you at the most vulnerable and weak moments. I learnt a lot during the time my father died and we had to focus on understanding what happens if a property is in joint names and one dies. This is one of the most grave disadvantages of joint property ownership. So, I am going to help you understand it in as simple a way as possible.

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Succession of joint property

After the demise of one owner, it is said that 50% share will go to the other owner and

the remaining 50% share will be distributed among the legal heroes of the owner who has expired. The surviving owner does become the absolute owner of the property until and unless the legal heirs of the expired owner relinquish their share of the property by a registered relinquishment deed.

The transfer of ownership depends on two arrangements which have been explained by Miss Punam in her response. But I would like to put some more light on it.

Tenancy in common and joint tenancy are the two most popular shared ownership arrangements.

Each individual in a tenancy in common (TIC) has a 50 percent stake of the property by default. Each partner has a freely transferable share in this arrangement, and unless there is a private agreement to the contrary, each has equal access to the property. This portion would ordinarily pass to the beneficiaries of a part owner's will, or to a child or spouse under the state's intestate succession laws, and if to more than one party, the property interest would need to be sold so the money could be shared.

A joint tenancy (JT), the other frequent form, is only for married people. A JT occurs when a married couple buys, pays for, and takes ownership of a property together. A JT automatically vests total ownership in the other spouse upon the death of one spouse. So, if your parents have owned their home since 1980, when they first lived together, and dad passes away, mum becomes the only legal owner.

I hope now you understand why I believe there are certain

disadvantages of joint property ownership.

Read More: What is Joint Property Ownership? How to Sell a Joint Ownership Property?

Distributing property legally becomes difficult if family members aren’t cooperative. When my grandfather died we had to learn what are the joint property rules in India to divide the property properly. We had to seek a lawyer’s help to help us out. The rules for joint property ownership after death are not the same for all. It varies on the condition so read this answer to get some help.

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How to do the transfer of property ownership from joint to single after death?

The property transfer differs from case to case. Here are the two main cases-

  Property distribution for a rented property(tenancy in common)

Suppose A and B have the property X in their names. After the death of a co-owner, suppose A, the entire property will get transferred to A’s legal heirs. In such a case the other owner, B will have no claim over the property of A.

  Transfer of properties in other cases than the tenancy in common

After the death of joint owner of flat in housing society or other properties, the deceased’s property gets transferred to the other owner. So if A and B are the owners of X, after the death of A, B will become the absolute owner of the entire property. (including A’s share)

 

Things can vary if there is a will, legal disputes surrounding the property or other cases. These are just the general joint property rules in India. I would hence suggest you consult with some legal experts to know exactly what should be done.

  Read More:

How to sell a joint ownership property?

What is Joint Ownership of Property?

 

I very well remember the chaos that occurred after the death of joint owner of flat in housing society just a few months ago in our neighbourhood. Property rules can be confusing, especially after the death of one person or co owner so better be aware of all the laws related to the matter. 

When that incident happened I decided to understand if property is jointly owned what happens on death, and I learned a lot of things. Let me share the rules here.

What is the rule for joint ownership property if one dies in India?

People often mistakenly believe that after the death of one owner, his/her property share will pass to the other owner, but that is not the case. If A and B are co-owners of a property and A dies, B will not inherit his/her share. Rather, the share will pass on to the legal heirs of A as per the succession act. But that is not always the case. The rules will depend on the type of share they enjoy. 

For example-

If a son and mother hold a property jointly, then on the demise of one,the share of the property would devolve upon the other. I will suggest you consult with a legal expert once to be sure what legal step you should take.

I hope this clarifies what happens when two names on deed one person dies.

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Read More:

What is Joint Property Ownership? How to Sell a Joint Ownership Property?