Women’s Day 2024: Here are 6 things women planning to buy property should know

Should women buy property individually or in joint name with their partner? Should they split the equated monthly installments with their partner? Who inherits the property in the absence of a will? Legal experts answer your queries.

1. Should women buy property individually or jointly with their partner?

It is advantageous to add your partner to the purchase of property for various reasons. Adding your partner can help claim tax benefits in both books of accounts as opposed to only one if it were to be bought in a single name. It also helps from an inheritance perspective, ensuring seamless transfer incase of demise. “Buying in joint names also increases the ability to take a higher loan as financial credentials of both parties would be considered as opposed only to one of them,” explains Harsh Parikh, Partner, Khaitan & Co.

Also Read: Women’s Day Special: Meet three women who have closed land transactions in India

2. Should women split the EMI with their partner or not?

Yes. If the property is bought in joint names, the Equated Monthly Installments (EMI), should always be split between the two. It not only ensures maintaining clean books of account but also gives both parties the benefit of claiming deductions in taxes wanting to buy property, said Parikh.

In the scenario where the property is jointly owned and the woman is responsible for paying the EMI, obtaining permission from the partner is imperative for property sale, thus necessitating a No Objection Certificate (NOC) in the event of divorce.

3. What happens to your property after your demise if you do not have children or if you split with your husband?

This will depend upon the fact whether the person who has died has left behind a ‘will’ or has passed away intestate, i.e. without a will.

If a person has left a will, the share of the person who had died would go to the person who she would have bequeathed under the will.

Also Read: Women’s Day: Number of women property buyers in MMR double in 2023; 9388 women buy homes worth ₹9293 crore

If the person to whom such share is bequeathed under the will is the partner, then the partner would become the sole and 100% owner of the property. In the event of such a share being bequeathed to someone else such as the parents of the deceased, then the parents and the partner would hold the property jointly, explained Parikh.

If a person has died without leaving a will, then the share of such person in the property would devolve upon her legal heirs as per the laws governing her at the time of her demise. This will depend upon whether the person was a Hindu, Muslim, Christian, Sikh etc, as each of them have their own personal laws governing succession. Then such legal heirs and the partner would own the property jointly, said Parikh.

Also Read: Bollywood actor Mrunal Thakur purchases two apartments in Mumbai from Kangana Ranaut’s family

4. Title due diligence: At the time of acquiring property, it is also important to undertake title diligence to ascertain if the title is clear – whether the property is mortgaged or is not mortgaged. If it is mortgaged, then such a mortgage should be released prior to acquiring the asset, Parikh said.

5. Approvals: While purchasing completed assets, one should also look at whether the property has received an Occupation certificate, as a building without occupation certificate cannot be occupied, added Parikh.

Also Read: Suhana Khan buys farmland in Alibaug for ₹9.5 crore

6 Stamp duty waiver: Mona Dewan, Managing Associate, ZEUS Law Associates, points out that under the provisions of the Transfer of Property Act, 1882, no special benefits/concessions are available to women as purchasers of property, however, to encourage the ownership of property in the name of women, many states extend stamp duty rebates to women.

Delhi, leads by example and in Delhi, women buyers are required to pay stamp duty @ 2% of the circle rate value of the property or consideration amount set forth in the instrument, whichever is higher, as compared to a man for whom the applicable rate of stamp duty is higher.

Similarly, in Uttar Pradesh, women buyers are entitled to 1% concession on stamp duty on the value of immovable property only up to ₹10 lakh, out of the total value of the immovable property, that is to say, rebate on stamp duty up to a maximum of ₹10,000 in case of immovable property is purchased by a woman, said Dewan.