Resolving Title Disputes: Ensuring Joint Family Property Ownership in India

India has a culture of primarily joint families where they not only live together but also own property together. While this was a perfect fit in the olden days, Property issues now usually creep up in a joint family when the elder male member of the family dies and they would have to discuss the distribution of property.?

Ancestral property or Coparcenary property is acquired by the family generations ago and they become a part of the inheritance of all members of a property. In a case where a family does not own property, then once the ancestral nucleus is proved, all the subsequent properties acquired irrespective of the fact whether they stand in the name of the Karta or not is presumed to be joint family property. (But it can be rebutted by the person setting up the said properties as his self acquired property.

In the case of Baikuntha Nath Paramanik v. Sashi Bhusan Paramanik & Ors. (AIR 1972 SC 2531), it was held by the Apex court that when a joint family is found to have a nucleus sufficient to make the impugned acquisition standing in the names of the persons who were in the management of the family properties are family acquisitions.

Some ‘rules’ related to the issue of title in ancestral property:

1. The co-parceners that comprise a small unit within a family have a birthright in it.?
2. The siblings are entitled to equal share in the parent’s property.
3. The terms "son" and "daughter" encompass adopted children but do not include stepchildren. Hence the siblings who are step brothers or step sisters cannot claim a share in the property of their father.

Interestingly, according to the Doctrine of Survivorship, the shares of the coparceners are subject to change with the death and births in the joint family. In case of death, the coparcenary share shall increase and with a birth, share will decrease.

Partition refers to a situation where the joint ownership has been converted into separate ownership of the individual coparceners. Partition can take place through various means such as agreement, notice, will and through certain other modes. Under the Mitakshara school, partition of the joint family does not only refer to the division of the property into specific shares but also division of status.?

How to resolve property disputes in India?

There are two ways of resolving property disputes in India:

1. Settlement: This may be done either mutually amongst the family members or through a neutral third party. There can be a family settlement agreement which can be signed by all the members. This agreement includes details of settlement between the family members with regard to car, jewellery, house, bank balance etc.?
2. Litigation: You need proper documents while entering into a litigation including the title deed, death certificate of karta. You are required to file a suit of partition and a legal notice will be sent mentioning the property details, shares you want, etc. The court will determine whether or not you have the right to claim the property.?Title disputes occur when there’s a dispute regarding property ownership and the extent of land associated with that property. Neighbourly disagreements over property titles can emerge when one neighbour intends to build a new edifice on their land, yet their adjacent neighbour fears it might encroach dangerously close to their own property boundary. A real estate title delineates the ownership of particular properties as specified in the deed. Typically, it encompasses the owner's rights, including possession, water and mineral rights, and property easements.

A Quiet Title

A quiet title proceeding is a legal action initiated to resolve disputes over property ownership. Typically conducted discreetly, away from public view, it addresses situations where documented property owners are challenged by others. These disputes often arise when ownership needs to be legally established due to conflicting claims or errors in documentation. It's essential for the rightful property owner to pursue legal recourse, seeking either financial compensation or the rightful possession of the property.

How might someone prevent a title conflict??

They can perform a title search to uncover any property issues prior to purchase. Additionally, safeguarding their title with insurance can provide protection upon sale completion, shielding the owner from potential claims or property defects.

When the county recorder’s office officially updates the title or vesting information for your property, you become the recognized owner on record. However, this title system can introduce delays and potential conflicts, impacting your property ownership.

A title dispute arises when another party claims legal ownership of your real estate. What are the primary causes of such disputes?

1. Transfers linked to legal matters: One prevalent cause of serious title issues is the transfer of real estate in conjunction with legal proceedings. For instance, during estate administration, the executor might need to sell real estate based on the deceased's instructions. If a beneficiary or heir is not located, the individual left out of the inheritance might contest the property transfer later. Similarly, divorces can sometimes result in title disputes.
2. Fraudulent deeds: Fraud represents another significant cause of title disputes. When someone buys a property deed, they expect to acquire ownership. However, they may unwittingly purchase a deed from someone who wasn't the rightful owner and thus had no authority to transfer the title. Often, disputes involving fraudulent transfers revolve around quitclaim deeds, where the person executing the deed relinquishes their claim to the property, which might be invalid.

Title disputes frequently escalate to legal action. If property owners fail to defend their ownership successfully, the claimant may assume ownership. Owners lacking title insurance risk losing not just their property equity but also their investments in upgrades and other financial assets tied to the property. Recognizing the causes of title disputes can empower property owners to address potential challenges effectively.

By-

Ms. Bijal Parikh, Junior Attorney at Vis Legis Law Practice, Advocates