Property Is Considered To Be An Immovable Asset

Published on: 26 Sep 2023

Property is considered to be an immovable asset. What determines its ownership is the type of legal claim that one, joint, or several owners have over the property. So what exactly is ‘ownership’ and how is it defined? The state of possessing control that might range from land or real estate to intellectual property is known as ownership. Rights, commonly known as titles, are given in the process and can be owned by various individuals. The economic advantage is eventually to the one who owns the asset. Ideally, there are three forms of property ownership. Let’s glance through the various types and understand which type can be suitable for whom.

Sole Ownership:

As the name suggests, ‘sole’, this asset, land, property is usually owned by a single person and can be obtained in the name of a single recipient. In India, this is the most common type of ownership title. To understand further, consider this scenario: A prospective purchaser seeks to buy a property with the help of his wife. He receives a down payment from her. Now, in this case, although another party has actively contributed to the property through financial assistance, she does not possess the rights to the property. Why? Because the sale deed is solely listed in the name of the primary purchaser.
The best part of this ownership is the choice of utilizing the asset remains with the sole owner, and selling, too, is none other than in the owner’s hands.

Joint ownership:

Similar to sole ownership, joint property is listed under many individuals. People who combine their own immovable property are joint owners. But what is the difference between joint and co-ownership? Are these different terms? While it's essential to know that there is no relevant difference between joint and co-ownership of property, and both terms are the same, co-ownership is not limited to only one type. Read on, to know more about the four forms of joint owners:

A. Joint Tenancy: The first type, joint tenancy, is a form of ownership that is co-owned by individuals and is based on the notion of unity, which suggests there will be equal participation of owners in a definite property. One of the major benefits here is the right to survivorship. So, what exactly does this imply? If one or more of the owners pass away, the asset will be handed down to the living holder. One of the biggest fundamental components of a dual tenancy agreement is the right of survivorship.

B. Tenancy in common: Tenancy in common is a type in which two or many persons share ownership of a property yet do not have equal rights. The biggest difference between joint tenancy and this is the division of property into various percentages among the renters, resulting in uneven use, rights, or revenue. Survivorship rights are not covered in this type of joint ownership. In the case of death, the heirs receive the descendant’s share and enter into a tenancy-in-common arrangement with the other remaining owners.

C. Coparcenary- The third form of ownership is a little different from all the others, how? A term used in The Hindu Succession Law of 1956, coparcenary establishes a person’s right to legally possess his/her ancestral property by birth. The most interesting part of this ownership is that every family member is, by default, a benefactor and therefore a joint owner. In addition, a Hindu Undivided Family (HUF) coparcener can sell his part of the joint family property.

D. Tenancy in entirety- This type of joint ownership is a shared tenancy between married couples. The title is held jointly in the form of a real estate asset, and any income generated by it is divided & owned equally by a wife and husband. If either of the spouses decides to change anything about their share in this tenancy, they must first seek & receive the other spouse’s permission. In case of the death of a partner/spouse, the second spouse legally becomes the sole owner of the property. When the couple opts for divorce, the two owners immediately become joint tenants.

Property ownership by nomination-

Property owned by nomination is a legal process that allows a property owner to name someone to inherit their assets in case of their death. The person nominated becomes the trustee or nominee of the said asset. Although he/she will not be the owner of the property, they are legally bound to transfer the property rights to the legal descendant/heir. In India, property nomination has also risen among owners since it allows the landlord to ensure that his property is not left unclaimed or exposed when he passes away.

How to choose what’s right for you?

Each property type comes with its own advantages and disadvantages, and hence, there are numerous ways of owning a property. Before you sign papers for a real estate asset, be sure you understand the legalities, tax exemptions & obligations as well as the consequences of the property ownership you're considering.
It may seem baffling at first, but with good and timely expert counselling and assistance from professionals, a property best suited for your needs can be chosen for hassle-free purchasing. We at Estatemint are well-versed in the real estate market's trends, rules and regulations, and property legalities. If you’re looking to buy a property but are unaware of the legal process, get in touch with us on our website for expert home-buying advice.