Shahid Balwa on various kinds of property ownership
by Dynamix Group WriterReal 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 374 times.