Summary of this article
Co-owners can only sell their own share.
Legal notice helps protect ownership rights.
Court injunction may prevent unauthorised transfers.
There are several reasons why Indian courts see real estate-related disputes, the most common one being disputes when co-owners of a jointly owned property face a point of disagreement. In particular cases where family members inherit land or homes that have not been formally divided, this is one of the most frequent concerns among co-owners. One may find oneself in a dispute if the other co-owner wants to sell the property and the other one doesn’t want to.
As per Indian property law, a co-owner cannot legally sell a jointly owned property without the consent of the other stakeholders of the property. However, what is permitted is transferring the undivided share in the property to the stakeholder who wants to sell the property. “In case you feel that your co-owner wants to sell off the property in question without your consent, it is imperative that you act quickly and efficiently,” says Ravikant, Co-founder, Elegance Infra and Enterprises.
Safeguard Your Rights As A Co-Owner
The first step to determining the situation is to find out what the other stakeholder wishes to do with the sale. Under Section 44 of the Transfer of Property Act, 1882, a co-owner can only sell their share of the property, not the other co-owners. If the property has not been defined in different segments or hasn’t been partitioned, the buyer acquires the share of the stakeholder who sold it, not the whole property. “First, ascertain your kind of ownership through various documents such as the title deed, sale deed, revenue record, encumbrance certificate, or other such documents,” adds Ravikant.
Issue a Legal Notice
If one finds out that their shares are being sold unlawfully, they must first and foremost send a legal notice to the other stakeholders to make a formal record of their objection to the proposed sale. This would act as a legal protest and could be useful as evidence if the dispute has to be taken to court. “Make sure that you lodge a legal notice to your co-owner as soon as possible so as to create a document of your protest,” adds Ravikant.
Preserve Ownership Documents
One must keep all their ownership documents ready as proof of their ownership rights. If the property was inherited, the will or a copy of the will would act as proof as well. Any document that shows ownership in the property acts as valid proof. “Keep all such documents that support your claim as regards your ownership of the property. You may also check whether there is any sale deed or agreement to sell made regarding the property,” advises Ravikant.
Verify Sale-Related Documents
Additionally, one must also check if the co-owner has executed or proposed a sale deed, agreement to sell or any other transaction documents related to the property. Reviewing such documents can help determine the extent of the proposed transfer. “Finally, where there is actual apprehension of an unauthorised transfer, one should petition the proper court for an order of injunction to prohibit the co-owner from establishing any third-party rights pending determination of the dispute,” states Ravikant.
Buying a property jointly offers shared benefits; however, it also shares risks. One must make sure that they are knowledgeable of their rights as a co-owner and to avoid legal procedures, which are extensive and bank-breaking.
