Prashanth Hs 17 June 2025

Tenancy in common

Hello everyone,

I’m in the process of purchasing a 50% undivided share in a commercial property in Karnataka. The current owner holds the entire property in his name, with a registered sale deed.

I have a few questions and would appreciate your expert guidance:

Is it legally permissible to register a sale deed for a 50% undivided share in such a property?
Post-registration, will both co-owners (the seller and I) be reflected in the Encumbrance Certificate (EC)?
One of the lawyers I consulted mentioned that the Kaveri online portal does not allow entering two owners for the same property. Is that accurate, or is there a way around it when it comes to co-ownership or tenancy in common?
If tenancy in common is valid and recognized in Karnataka (as per Section 44 of the Transfer of Property Act), what key legal or procedural aspects should I ensure from the buyer’s perspective?

Thanks in advance for your time and inputs.

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4 Replies

T. Kalaiselvan, Advocate (Advocate) 17 June 2025

Tenancy in common (TIC) is a legal arrangement in which two or more parties jointly own a piece of real property such as a building or parcel of land.

The key feature of a TIC is that a party can sell their share of the property while also reserving the right to pass on their share to their heirs.

It is generally legal to purchase an undivided share (UDS) in a commercial property in Karnataka, but it's crucial to understand the implications.

While you can buy a share, it doesn't automatically grant you possession rights to a specific part of the property until a formal partition occurs, either through agreement or court decree.

The sale deed should clearly mention the UDS you're acquiring, providing transparency and safeguarding your ownership.

Buying a UDS doesn't automatically give you the right to occupy a specific portion of the property.

Section 44 of the Transfer of Property Act, 1882, deals with the transfer of a co-owner's share in immovable property. It essentially allows a co-owner to transfer their interest in the property to another person, and outlines the rights and liabilities of the transferee. The transferee acquires the transferor's right to joint possession or other common enjoyment of the property, as well as the right to enforce a partition.