Joint Ownership of Flat | Pros and Cons to Remember
07 Apr-2020

A Guide About the Joint Ownership of Flat

Posted on April 07, 2020 Joint Ownership of Flat
by pvs_admin
Kerala Property

Buying a house will be difficult for an individual as it requires a huge amount of capital investment. This is a big issue while buying a house, flat, or any other properties. Thus the buyers are opting for joint ownership while buying the properties. Nowadays, joint ownership of flat is getting increased day by day. There are different people who buy flats on joint ownership for multiple reasons. As per your needs and situations, some of the features of joint ownership may or may not be suitable for you.

Along with the advantages, there are also some disadvantages to the joint tenancy system. Some of the pros and cons of joint ownership are discussed below.

Who Can be Co-owners?

Who Can be Co-owners

As per the law, any individual can be the co-owner of a property. Let it be anyone like parents, children, partners, or siblings, can own the asset. There is also no issue with the employability of the co-partners. Even the co-partner is unemployed, there is no issue. In case the financial responsibilities are managed by a single person, co-owners can make use of some other benefits. Some of the benefits that they can avail are discussed below.

Advantages of Joint Ownership of Flat

Loan Eligibility

One of the main advantages of joint ownership is the high chance of loan eligibility. While the applicant is applying for the home loan, the bank looks at the net monthly salary that he/she receives. On behalf of this calculation, the amount for the loan will be granted. There are different types of home loans in Kerala, you need to understand which one is best for you.

In case the monthly salary of the applicant is Rs 2 lakhs, then the will provide a loan with the EMI, ie as high as Rs 100000. If a bulk amount is needed as the loan, then you are able to apply for the loan through making themselves as co-owners.

If the home salary that you are receiving monthly is higher, then you may get a higher amount as the loan. Nowadays, many people are buying flats in Calicut by looking at the benefits that they can receive through this system.

Benefits from Income Tax

Benefits from Income Tax

For the co-owners of a property, it is more simple to claim for the tax deduction. The tax deduction will be on both interest amount and principal amount. In joint ownership, the owners are also free from certain taxed imposed by the government, ie state gift tax requirement. This tax benefit is also one of the main reasons for joint ownership of flat and other properties. By the deduction of the taxes, the owners can save a good amount. This benefit is not applicable to many single ownership assets.

Responsibility is Equal

When two business partners or a married couple is owning the property, then both of them should care about the property. The individual owners of an asset are always responsible for the asset. Both of them can share the liabilities and enjoy the advantages of the asset. The second owner cannot put the responsibilities on the first owner and vice versa. It is just that both of them should have equal responsibility for the property.

Property Transfer

Property Transfer

Nowadays apartments and flats are getting more popular in the real estate industry. Many experts are recommending buying flats on joint ownership. If there is a sudden accident to one of the owners of the asset, then as per the norms, the asset can be given to the other owner. The transferring can be done without undertaking any legal probe. While transferring the asset to the new owner, a new registration is must with a solicitor. This is an important factor for joint ownership getting more popular. You can check out the different types of apartment trends in Kerala.


As discussed the responsibilities, profit sharing is also shared equally. The profit-sharing should be always proportional. It means that the rent paid by the third party should be equally divided. Whatever it may be like, commercial things or any other revenue, the profits must be divided equally.

Disadvantages of Joint Ownership of Flat

Delay on Documentation

Delay on Documentation

As there is more than one individual as the owner of the property, it takes more time to complete the documentation process. The process gets repeated twice or thrice, depending on the number of owners. So, make sure that the documents that are submitted are authentic. This situation is not only in the bank, in major offices that require paper submission also face this same issue. Delaying the documents are one of the major issues of joint ownership. Due to this issue, many people are unable to complete their registration on time. Also read the checklist for buying property in Kerala.


You should be very sensitive while selecting the co-owner for your asset. When your earning individual suddenly gets an accident and passes away, then the rest of the loan amount needs to be paid by the co-owner of the asset. It will be a big problem for them as he/she will not be an earning member. It may also create many legal implications. Therefore, selecting a non-earning person for sharing ownership is not a good idea.



If you are buying any flats in Calicut on joint ownership with our relatives, then it may build different legal implications in the future. So, you must consult an advocate or any other legal advisors before signing the documents and purchasing the asset. Whether it is joint ownership or single ownership, consulting a legal advisor before the purchase is a good option. This consultation can sometimes save you from getting cheated. So, always go for legal consultation.

Lack of Freedom

While owning an asset on joint ownership, then he/she should discuss or get permission from the other co-owners for performing any alterations. If the property is your own, then you can do anything you want without no one’s permission. In joint ownership, each of the owners should know the changes that you are planning to make. You can only do these changes if the co-owners agree with your decision. It will be difficult when the co-owners don’t allow the changes. It is the main disadvantage of a joint ownership system. Therefore, find a good legal advisor and ask his suggestion before the purchase of any type of property. Also read some apartment owners legal rights are something most people are unaware of.

These are some of the major pros and cons of joint ownership of flat, houses, and other properties. So, while buying any properties on joint ownership keep these points on the mind. Also, try to consult a legal advisor before buying the property and make sure that all the documents are correct and you are not getting cheated.

Are you checking out the best builders in Calicut for superior apartment projects? You have come to the right place. PVS Builders are one of the most trustworthy and reputed builders in Calicut, with some of the best laid out apartments in prime locations. Contact us today to know more!

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