Legality in shared property ownership between unrelated parties


we, a service based co, provide a platform to buyers to invest "partly" in a property(P). A Customer(C) is a "Part-owner" of the P. For ex, He will be owning, say 20% share of a 2BHK Flat. How can we make sure 1. C who buys a "%" of P can be deemed an independent owner to that % itself, without depending on the other "part owners" of the same P? 2. In case C, who is willing to sell his "%" ownership later, will there be any dependency on the other "part owners" of the P? 3. Is it possible to register only a "percentage" of the property on an individual's name, say, 20% of the 1400 SQFT

Answers (1)


130 votes

Hi
Yes. it is possible to define the percentage of ownership by each of the buyer in the said property.
Section 44 of Transfer of property will apply to such transactions.
However whenever one person wants to sell, other persons have the first right of refusal and hence may cause a problem in the transaction.
If the property is not divisible by Metes and Bounds (for example Flat), co-ownership is Not Recommended considering practical problems in future transactions.
You should explore other options as there are disadvantages outweighing advantages in your business model
Hope this helps.


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