Shahid Balwa on various kinds of property ownership

by Dynamix Group Writer

Real estate is one of the major components of the substantial assets usually owned by a group of individuals. Investing in real estate can be an exhilarating experience for some as it promises huge returns in most cases.  

But it is also quite possible to go wrong in the matter because of false promises and advertising. Therefore, it is imperative to spend quality time on a background check in accordance with our requirements.

There are primarily two main reasons for property investment—profits and habitation. Properties usually have endless uses depending on the owners and the requirements of the area, but it can essentially be divided into three types: residential, commercial and vacant land. Hence, one should have basic knowledge of the types of real estate ownership.

Four of them are explained in extensive detail here.

Exclusive Possession

This is the most common type of ownership and signifies exactly what the term suggests; only an independent person or entity owns all rights to a piece of property. Logically, the owner, person or company is entitled to buy, sell, provide on rent or make repairs or renovations to it. The same person or enterprise is subject to the expenses on the property. A sole owner will enjoy high circle rates in the city and the right to do whatever pleases him/her.

Joint Occupancy

A property is subject to joint occupancy when two or more people possess the ownership of a property. If one of the owners passes away, the property is not subject to his/her will but  instead the ownership is directly reinstated to the other member(s). For instance, Shahid Balwa, Director, DB Realty is responsible for certain aspects of the group but the land belongs to all members of DB Realty.   

Joint Tenancy (Survivorship Rights)

Under this category, two or more people enjoy undivided ownership of a property. In the case of the demise of an owner, the percentage of the ownership is passed on to the remaining members. The rights on the part of an owner can be passed on traditionally. One of the disadvantages of such ownership is the common consensus while selling the property.

Common Ownership

This category is not quite different from joint ownership  except that the share can be owned in varying percentages. Although, more than two people own a property and one of them dies, the share of that person is not distributed to the rest of the members. The members are allowed to pass the ownership traditionally. The interest of the deceased passes on the nominated heir/heirs after the tax formalities are appropriated.

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Created on Jul 30th 2019 01:19. Viewed 373 times.

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