Selling a jointLY owned residential property can be challenging. All co-owners of the property must be in agreement about selling the property and have legal documentation proving their ownership share. It is important to consult a lawyer who specialises in property law to understand the legal implications of selling a joint property and dividing the shares.
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Here are the steps you should take to sell a jointly owned property:
Determine ownership share
All co-owners of the property must agree on the terms of the sale, including the sale price, division of proceeds, and allocation of expenses. The ownership share of each co-owner must be determined, which is usually based on the percentage of their contribution towards the purchase price or as per the agreement between the co-owners.
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Get the property valued
The property must be valued by a registered valuer to determine its market value. A real estate agent can help market the property, find potential buyers, and negotiate the sale on behalf of the co-owners. The agent can also advise on any legal requirements or taxes associated with selling a property in India.
A buyer must be found who is willing to purchase the property at the agreed-upon price. You can advertise your property online, in local newspapers, and through other marketing channels. Advertising the property through online platforms and local newspapers can help attract potential buyers. It is also important to hold open houses to allow potential buyers to view the property and make an informed decision. Once a buyer is found, the sale agreement should be drafted and signed by all co-owners to finalise the transaction.
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Check financial liabilities
If you are not living in the same property or living far, you must check all financial liabilities on the property. You should check the original sale deed of the property. It should mention whether the property has any existing loans or mortgages. It will ensure you don’t get into any legal dispute with the prospective buyer.
Sign the sale agreement
A sale agreement must be drafted and signed by all co-owners and the buyer, which should include the terms of the sale and the allocation of proceeds. Once the sale is complete, the ownership of the property must be transferred to the buyer and the proceeds must be divided among the co-owners as per the agreed terms.
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It is important to note that if the co-owners are unable to reach an agreement on the terms of the sale and division of proceeds, they may need to resort to legal action to resolve the dispute. In such cases, the court will decide based on the evidence presented by each party.
“When buying a jointly held property, you should verify that the property has all necessary legal clearances, such as approvals from local authorities, to avoid any financial liabilities in the future,” says Adhil Shetty, CEO, Bankbazaar.com. “If you plan to take out a home loan to finance the purchase, it’s important to check your loan eligibility.”
When buying such a jointly owned property, take into account the financial aspects of the purchase besides checking the legality of the property to ensure the purchase is hassle-free.
CO-ownership
* If the co-owners are unable to reach an agreement on the terms of the sale and divisionof proceeds, they may need to resort to legal action to resolve the dispute
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* If you are not living in the same property or living afar, check for all financial liabilities on it to avoid disputes later
