e-Namo Legal Lab

🏠 Co-Ownership Agreement: Why It’s Important in Property Deals

Buying property is a big investment, and many times two or more people purchase it together—whether family members, business partners, or friends. In such cases, having a Co-Ownership Agreement (सह-मालिकाना अनुबंध) is extremely important.

✅ What is a Co-Ownership Agreement?

A Co-Ownership Agreement is a legal document that clearly defines the rights, responsibilities, and share (ownership ratio) of all the co-owners of a property.

✅ Types of Co-Ownership in India

Joint Tenancy (संयुक्त स्वामित्व):

All co-owners have equal rights.
On the death of one co-owner, their share automatically passes to the surviving owners.

Tenancy-in-Common (साझा स्वामित्व):

Each co-owner has a defined share (equal or unequal).
On death, the share passes to the legal heirs of that co-owner.

✅ Why is a Co-Ownership Agreement Important?

Ownership Clarity: Defines each owner’s exact share.
Dispute Prevention: Avoids conflicts in the future.
Loan & Mortgage: Helps banks verify ownership for loans.
Sale & Transfer: Makes selling or transferring ownership smoother.
Succession Planning: Predetermines how ownership will pass after a co-owner’s death.

✅ Key Clauses in a Co-Ownership Agreement

Property details & ownership ratio
Rights and duties of each co-owner
Sharing of maintenance & expenses
Rules for sale, lease, or mortgage
Dispute resolution mechanism
Succession and transfer clause

✅ Example

Suppose two brothers purchase a plot together, but one invests 60% of the money and the other 40%.
👉 A Co-Ownership Agreement ensures that their ownership ratio (60%-40%) is recorded clearly, preventing future disputes.

🔑 Conclusion

A Co-Ownership Agreement is not just a formality—it provides legal clarity, financial security, and long-term peace of mind. Anyone buying property jointly should always ensure this agreement is properly drafted to avoid future conflicts.

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