Introduction: Partition Deed
Partition Deed: Real estate properties are often owned jointly by multiple people of the family. The fact that there exists more than one stakeholder makes it difficult to divide or sell it generally due to varied interests of the people who own the property. However, the government has ensured various provisions so that a property can be evenly divided amongst its co-owners. One of those provisions is a Partition deed.
What is partition deed for a property?
A partition deed enables the property to be divided among the co-owners of the property such that each co-owner is allotted his share thereby making him the rightful owner of the share allotted to him. Partition deed ensures the legal division of the property which is jointly held by several people.
Once the division is done as mentioned in the partition deed, each member is entitled to sell, gift or transfer his share of the property according to his needs.
Let us discuss a few scenarios that are generally observed while a property is undergoing the partition process.
Partition with mutual consent:
It is the most mature and peaceful way to divide a property. If all the co-owners of the property have mutually agreed to divide a property, they can move forward by executing a partition deed and registering it at the local registrar office. The partition deed will ensure the division of the property as per the share owned by co-owners. Once the deed is executed, co-owners will become legal owners of their respective share and are free to sell, transfer or gift the same.
On the other hand, if the joint owners of the property are not on the same page over its division, an appropriate lawsuit should be filed in the court. This is to be followed by executing a partition deed on a stamp paper specifying the share of each co-owner of the property. Moreover, the deed should be registered at the local registrar office to give it a legal standing.
Inherited properties:
The share of every co-owner in a property is inheritable and transferable. However, all the co-owners are required to state their share of investment in order to avoid conflicts, hassles in inheritance, taxation to name a few.
The laws of inheritance play an important role in the property division process. Property laws differ for all communities including Hindus, Muslims, and Sikhs. For example, if a person dies leaving behind his share of the property, then, his son automatically becomes the new owner of the property as per the Hindu Succession Act. Hence, it is important to study property laws before planning on dividing a property.
Joint ownership does not imply equal share in the property:
It is one of the most common misconception among property owners that joint ownership translates into equal share for all stakeholders involved. For example, a person jointly holding a property with another person does not imply that he owns half the property. The share of the person depends on his investment and as mentioned in the sale deed.
Click Here to Download
ALSO READ:
