Joint ownership of property in India assures multiple advantages ranging from increased loan eligibility to tax benefits.

Generally, people buy properties for various reasons. But, almost always, the need to buy one’s own property is felt as soon as one ties the knot before that, rented accommodation works just fine. Husband and wife join hands to make it happen, to have a house which they would call home.

Buying a home comprises numerous financial and legal responsibilities. To share the burden of purchasing a property, people often decide for joint ownership of property in India.

Problems between the co-owners of a land and property, such as the divorce of a couple, have various complications on the ownership of the property. We examine the implications on home loans, the division of the property and ways to resolve the issue cordially.

A home property which is under joint ownership between a husband and wife, difficulties may arise if the couple decides for a divorce. In such circumstances, it becomes mandatory to determine who will get what portion and how the loan accountability will be distributed.

To safeguard against such possible incidents and to avoid differences, the co-borrowers should plan the payment terms of the joint loan (such as account type – whether single or joint, payment type, the percentage of contribution and the period), with the financial institutions.

Settlement of joint ownership of property in India that is jointly owned by the couple

When a husband and wife decide to separate, the house took jointly and which is mortgaged to a loan institution has to be politely dealt with. There are various ways to settle this and the remaining amount:

• Sell the property and clear the loan. The outstanding amount could be divided equally.
• Either of the party can take over the property ownership, by compensating the contribution of the other party. The property can then be re-evaluated, based on his/her borrowing ability.
• Clear one party’s name from the lending institution’s loan account. The financial institution shall assess the possibility of doing so and the remaining loan amount, by scrutinizing the other party’s repayment capacity.

For a lending institution, all the applicants are equally responsible for the outstanding amount, without inequality. Therefore, although nobody thinks of the divorce-like situation in advance, it is essential for couples to take help of the professional property lawyers, before buying a joint ownership of property in India.