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Nov 194 min read

How To Remove Joint Owner Names From Property?

In India, There May Be Instances When More Than One Person Shares Ownership Of A Property. In Such Circumstances, There Can Be A Situation Where One Or More Joint Title Holders Are Willing To Remove Their Name From The Property Title. This Can Happen Stemming From Different Reasons Such As Quarrels, Kinship, Race, Or Commercial Disputes. Regardless Of The Cause, The Process Is Legally Enforceable And Has To Be Conducted With Utmost Precision To Prevent Any Kind Of Disagreement And To Facilitate A Hassle-Free Transfer Of Ownership.

Property Ownership: Legal Framework


  • Indian Law Refers To Two Or More Persons Owning A Property And Having Rights In A Property As 'co-Ownership'. 

  • The Rights To Property Are Regulated By The Transfer Of Property Act Of 1882 And Other State Laws On Property. 

  • These Kinds Of Owners Can Have Different Kinds Of Ownerships, For Example, Joint Tenancy Or Tenancy In Common, And Each Of Them Has Its Rights And Duties Associated. 

  • Usually, A Joint Owner’s Name Can Be Removed By Way Of Transferring Or Relinquishing Of Rights Which Is Then Duly Registered In The Lands Register.


Gift Deed: 


A Gift Deed Is A Legal Document Utilized When One Owner Desires To Give Their Share Of Property To Another Owner In A Generous Manner. Here, The Transfer Is Made Without Any Money’s Worth Exchange. This Tends To Happen A Lot In Families Whereby A Family Member Wants To Get Rid Of Another Family Member Without Making A Sale.


Steps To Create A Gift Deed:


  • With The Assistance Of An Attorney, Prepare A Gift Deed That Includes The Particulars Of The Property, The Benefactor, And The Beneficiary. 

  • Get The Document Executed By Both Parties And Attested By At Least Two Witnesses. 

  • File The Gift Deed For Registration At The Local Sub-Registrar’s Office.

  • Every State Differs In The Imposition Of Stamp Duty Rates On Gift Deeds. In General, Stamp Duty Charges Seem Less When Family Members Are Gifted Than For Every Other Category.

  • If The Gifts Are Made To More Than Grade Relations, They Are Generally Free Of Tax Under Section 56 Of The Income Tax Act 1961. When Transferring Property By Gift To A Person Who Is Not A Relative, The Recipient May Be Subject To Certain Tax Obligations.


Relinquishment Deed:


In India And Amongst The Family Members, A Relinquishment Deed Is Another More Common Option. Under This Deed One Co-Owner Relinquishes His Rights And Shares In Favour Of Other Co-Owners.


Steps To Create A Relinquishment Deed:


  • Write The Occupation, Names And Addresses Of The Co-Owners, And A Description Of The Relevant Property In The Deed. 

  • Also, Declare That The Relinquishing Owner Willingly And Voluntarily Relinquishes Ownership. 

  • All The Concerned Parties Shall Also Sign The Deed After Which The Signature Of Two Witnesses Shall Be Required And The Deed Lodged In The Office Of The Sub-Registrar.

  • In Most Cases Deed Of Relinquishment Between Family Members Incurs Only A Small Nominal Stamp Duty But The Specific Rate Is Subject To The Local Legislation.

  • Where The Relinquishment Is Done Without Any Consideration, There May Be No Tax Liability On Income. On The Other Hand, Why Capital Assets Held For More Than 36 Months Attract A Tax Rate Of 20% On Long Term Capital Gains, While Short Term Capital Gains Are Added To The Income Of The Seller And Taxed At A Certain Income Tax Slab Rate.

  • Re Consideration Is Present, It May Attract Capital Gains Tax To The Party Giving Up Rights.


Sale Deed:


A Sale Deed Is Employed In Situations Where One Of The Joint Owners Is Intending To Transfer His Or Her Share In The Property To The Remaining Owners Or To An Outsider. This Process Is A Transfer Of Property Share For A Price.


Steps To Create A Sale Deed:


  • Prepare The Sale Deed In Accordance With The Details Of The Transaction, The Identification Of The Buyer And The Seller As Well As The Property In Question. 

  • Acquire Signatures Of Both Parties Involved And Two Outsiders As Witnesses. 

  • Submit The Sale Deed To The Sub-Registrar’s Office For Recording Purposes.

  • Sale Deeds Are Generally Subject To A Heavy Stamp Duty, Determined By The Worth Of The Property Or The Interest Being Transferred. The Rates Differ Among States But Certain States May Offer Lower Rates In Case Of Transactions Between Family Members.

  • The Proprietary Owner Selling A Property May Be Only Subject To Capital Gains On The Basis Of The Years Held, And The Gains Realized From The Sale. Partition Deed:


It Is Appropriate To Use A Partition Deed In Case The Property Is Held Jointly By More Than One Person Or Group Of Persons And Each One Wishes To Segregate Their Respective Portion From The Whole. This Deed Partitions The Property And Assigns Specific Shares To Each Owner.


Steps To Create A Partition Deed:


  • Translate The Partition To A New Legal Document Which Will Include Boundaries And Areas Showing The Share Of The Different Owners And Their Respective Ownerships. 

  • He/She Should Obtain The Signature Of All The Co-Owners In The Partition Deed As Well As The Registration With The Sub-Registrar.

  • Different States Charge Different Stamp Duty. In Most Situations, There Are Reduced Stamp Duty Rates In Cases Where Properties Are Partitioned Between Relatives.

  • The Disposition Of Interests In Property Or Shares Among The Owners Within The Framework Of The Partition Deed Does Not Usually Give Risks Of Capital Gains Tax, As It Is Associated With Only Organizing The Property Rather Than Transferring It.


One Can Talk To Lawyers From Lead India For Any Kind Of Legal Support. In India, Free Legal Advice Online Can Be Obtained At Lead India. Along With Receiving Free Legal Advice Online, One Can Also Ask Questions To The Experts Online Free Through Lead India.


Visit Us: — www.leadindia.law

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