Busting Some Property Ownership-Related Myths

Most of the knowledge we acquire about property and related matters is from word of mouth. And, along with the right piece of information, some wrongly-held beliefs also creep inside our system. Here, we bust five such property-ownership related myths.

A co-owner is liable to pay taxes

Under the provisions of the law, you are liable to pay taxes only if you have made a monetary contribution towards the same. For instance, if your husband buys a property arranging the funds all on his own while making you a co-owner, you are not liable to pay taxes. The same is not true if you have made a contribution in any form, home loan included. 

Also read: Common Myths About Property Tax Payment Busted

Joint tenants and tenants in common mean the same thing

The answer is they are not, and depending upon the ownership type mentioned in the conveyance deed, property succession will take place. For instance, if you own a property with your spouse as joint tenants, at the time of the demise of either, the ownership of the property will transfer to the other under the Hindu Succession law. However, if the two of you are tenants in common, the share of the dead party would be divided among the legal heir under the provisions of the law. Alternatively, the division might also take place according to the will, in case the deceased has left one behind.

You might lose ownership of ancestral property if you are absent

Your physical absence can, in no way, not temper with your legal right over an ancestral property. The same remains true even if you are not paying taxes for the same. You are liable to claim your share as and when you want to. You may never in your life have visited your ancestral property while your, say, cousins might have been residing there all their lives. This will have no effect on the property ownership pattern.

I can decide on behalf of my spouse when I sell the property

You may have added your wife's name in the home loan application only to increase your credit eligibility and made her a co-owner, too, to give her an impression of security. But, she by defaults gets half the share in your self-acquired property under the provisions of the law. This means you will need her approval in case you want to sell the property, etc. It would be a mistake to consider this paperwork an exercise without much impact.

I get a share in my parents' property by default

In case this property is self-acquired and your parents decide to confer the ownership through a will to someone else, you will have no legal right over the asset. The same is not true in case of an ancestral property. Though a gift deed, a father can give this property to a third party in his life time. Through a will, the property ownership is transferred after the demise of the donor.

Also read: These Are The Myths About CIBIL Report