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Ramesh N K   25 June 2017

Ownership if case of demise of one of the joint owners

I am the secretary in an housing complex in Mumbai. I am faced with a difficult situation and need some advise. A flat is owned by two brothers and the first owner died. Both had filed nominations quite some time back and had included their spouse as nominee. The second owner, by virtue of him co-owning the flat, is claiming for the full flat to be transferred to his name. The nominee of the first owner is also making a claim for 50%. How is this to be addressed? Also, if there was no nomination from both, then what should be line of action? Will appreciate some expert opinion. Thanks in advance.


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 20 Replies

Kumar Doab (FIN)     25 June 2017

The very able local senior counsel of unshakable repute and integrity specializing in revenue/property/civil matters and well versed with local rules/laws, retained by society could have resolved the matter, properly, after examination of all docs on record.

 

Relate with Bye Laws and rules of society framed in accordance with Model Bye Laws.

 

With limited understanding:

By NOC of legal heirs it might be possible to transfer the shares to associate member (Co owner).

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     25 June 2017

How did the brothers acquire ownership of the flat?  Are both their names in the purchase deed as purchasers of the flat? If both their names are in the purchase deed, has the percentage of each one of them  specified in the purchase? If both were members of the Society only one of them will be member. The other will be Associate member. Who died, the Member or the Associate Member? If the one who died was Associate Member, his name will be removed from the membership register and the share certificate on receipt of the death certificate. The surviving one will continue as member.  Two separate nominations cannot be made with respect to the same flat. Further nomination does not confer ownership of the flat. A nominee can only hold the flat in trust until the flat is transferred to the real owner/s.

If the one who died was member of the Society, on his death the Associate Memeber also ceases to be such Associate Member.

As there is a dispute between the nominee of one member and the surviving member, you ask both of them to write to the Society clearly staking their claims. In reply to their claims, you write to each one of them asking them to produce succession certificate in support of their claim. You do not act until they produce succession certificate. Please note that membership of the Society in not only for ownership of the flat but also such member has to discharge his liabilities to the Society.

Until about one year back an Associate Member was not necessarily be owner of the flat. But last year the law was amended. Now an Associate Member also has to be part owner of the flat. If the name of the surviving member was not there in conveyance deed, he would cease to have any rights.

Ramesh N K   25 June 2017

Thank you for your revert.  Here are my inputs:

1. The flat was owned by the father and transfered to the two sons.

2. The elder brother was the first name in the share certificate whio is the deased person.

3. There is no animosity between the two brothers, just that the deased had made a nomination in the name of the spouse.

4. As per your revert, am I to understand that hte co-owner (Associate member) will become the full owner of the flat irespective of the nominations filled in?

5. We are not aware of any will written by the first owner.

Kindly advise.

Thank you.

Ramesh N K   25 June 2017

Thank you for your revert.  Could you help me understand the byelaw related to this issue? I was not able to get anything conclusive in teh byelaws. 

 

Thanks and regards.

Ms.Usha Kapoor (CEO)     26 June 2017

  After death of a person, the nominee is entitled to receive the amounts payable (as trustee on behalf of legal heirs) but the amount so received will be held for the benefit of the ultimate legal heirs and is to be distributed according to the law of succession, i.e., testamentary or intestate succession. In other words, nomination does not confer any beneficial interest on the nominee nor does it result in transfer of ownership of an asset to the nominee.

In this case Deed of purchase WIL'VE TO BE EXAMINED. iF IT IS COOWNERSHIP  WITH RIGHT OF SURVIVORSHIP IN  THE EVENT OF DEATH OF   ONE COOWNER TH E  FLAT PROPERTY  GOES TO   THE SURVVING COOWNER   BY RIGFHT OF SURVIVORSHIP. SINCE DEMISED  COOWNER NOMINATED  HIS WIFE  TO SUCCEED TO HIS PROPERTY  AFTER HIS DEATH SHE WOULD NOT  SUCCEED TO  HER HUSBAND'S 50% SHARE AS SHE IS  A MERE  NOMINEE WHO HOLDS THE PROPERTY/FLAT IN TRUST FOR THE TRUE OWNER AND THAT PERSON  IS HER BROTHER IN LAW, THE SURVIVING COOWNER.\

i                                                  IF  THE DEED OF PURCHASE IS SILENT  OR  COOWNERSHIP  WITHOUT  RIGHT OF SURVIVOR SHIP  And  the demised coowner during his lifetime TRANSFERS his interest in favour of his  legal heirs then the demised coowners's 50% share in the flat proiperty goes  to his legal heirs,  his  wife and not to the surviving coowner as Tenants in common.
Common.

In this case both the coowners /brothers nominated their respective wives  to succeed to their share  in the property. After the demise of both the brothers their wife nominees would inherit  or succeed to their respective husbands 50:50  share in the FLAT PROPERTY.EVEN THOUGH THEY ARE NOMINATED AS THEY THEMSELVES ARE TRUE OWNERS OFTHEIR RFESPECTIVE HUSBANDS 50% SHARES. iN  THIS CASE ONE OF TH E BROTHER COOWNER DIED AND   HIS WIFE  A MERE NOMINEE  DOESN''T HAVE ANY OWNERSHIPL RIGHTS IN THE PROPERTY  AND HOLDS THE PROPERTY  IN  TRUST FOR  TRUE OWNER WHO IS  NONE OTHER THAN HER BROTHER IN ,LAW, THE SURVIVING COOWNER. If  there was  no nomination from both if the deed of purchase mentions coownership with righ of survivorship the demised coowners legal heirs, his wife and children etc do not succeed to  the demised  coowner's flat  property  and the surviving  coowner succeeds to demised coowner's property by virtue of the right to survivorship.If purchase deed is silent or   without the right of survivorship then demised coowner's wife succeeds to  her husbands flat  as she is his legal heir and property devolves as Tenants in common..

                                     SHOW THE PURCHASE
DEED TO AN EXPERT PROPERTY LAWYER AND GET YOUR RIGHT S CONFIRMED.

Ms.Usha Kapoor (CEO)     26 June 2017

tHANKS IN  CHARGE DOESN'T  LIKE MY SUPERBLY WRITTEN ERROR FREE ANSWER AND WHEN i WAS ABOUT TO  CLICK SUBMIT HE REMOVED MY ANSWER FROM MY VIEW. AGAIN i RETYPED  mY ANSWER AS HE WAS STOPPING THE EDIT BUTTON i WAS TO CLICK EDIT BUTTON SEVERLAL TIMES FO R CORRECTING TH ERRORS  AND MODIFY SEVERLA TIMES  AFTER SAVING CORRECTION  OF  SOME  TYPING MISTAKES. AT EACH AND EVERY STAGE OF  ERROR CORRECTION.PLEASE  SEE THAT  IN FUTURE HE DOESN'T RESORT  TO SUCH CHEAP AND DEMEANING  TACTICS.

Ms.Usha Kapoor (CEO)     26 June 2017

FOR ASUBMITTING THIS  COMPALINT ALSO HE CREATED  PROBLEMS.hE IS MANIPULATING MY THANKS ALSO. fROM THE BEGINNING HE  HAS BEEN  DISCRIMINATORY.

P. Venu (Advocate)     26 June 2017

The Society need not sit in judgment; let the claimants approach a civil court.

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     26 June 2017

How did the father transfer the flat to his sons?  Did he transfer the flat during his life-time or was it transferred after the death of the father through will or by succession?   If the transfer was done during the lifetime of the father,  it should have been by a transfer or gift deed with stamp duty duly paid and registered, unless the transfer was before 1982.  If such deed was made,  both sons would be part owners and on the death of one of them the flat cannot be solely transferred to the other.  The heir of the deceased person will have claim over that part of the property which was his.  If the transfer was done without a transfer or gift deed, so many questions of law will come at so late a stage.The byelaws or any law cannot cover all kinds of possible situations.

I again suggest that you hold the case in abeyance and ask the parties to produce succession certificate.  Strictly speaking a flat in Mumbai cannot be transferred solely on the basis of nomination.  At least I will not purchase such a flat.

Firdosh Kassam (Karachiwala) (ADVOCATE & SOLICITOR firdoshkassam@hotmail.com)     27 June 2017

Nomination just allows the Society to transfer the Flat and the shares in the name of the Nominee but does not confer ownership title on the Nominee. The legal heirs of the deceased have to take legal proceedings to establish their rights in the appropriate Court or resolve the problem through Conciliation/Mediation by a professional Conciliator/Mediator. This being a family matter the Court will under section 89 of the Civil Procedure Code ask the parties to select one of the modes of ADR (Alternate Dispute Resolution).

It is not clear how the father has transferred the Flat whether by a Gift Deed or a Transfer Deed and how the Share Certificates have also been transferred in the records of the Society. Kindly clarify.

Dr. MPS RAMANI Ph.D.[Tech.] (Scientist/Engineer)     27 June 2017

Society is not really concerned with the ownership of the flat as such. Society's concern is mainly with regard to discharge of  liabilities to the Society. If there is a valid nomination, the Society need not go beyond transfer of the flat to the name of the nominee. The role of the Society beyond is only passive. For instance after transfer of the flat to the nominee, if another person comes with a claim, the Society only has to ask him to come with a court order. Things are complicated in this case because there were multiple memberships and multiple nominations.

Kumar Doab (FIN)     28 June 2017

In your 2nd post you have posted that original owner was father and flat devolved upon current owners i.e. 2 brothers.

Probably it is not by registered sale deed.

Kumar Doab (FIN)     28 June 2017

LCI expert Mr. hemant Agarwal,Mr. Madhu,Mr. Kishore mehta,Mr.M V gupta have been posting on society matters and are from your location/state.

If you wish you may get in touch with them.

Ramesh N K   28 June 2017

Thank you all for your inputs and advise.  I am quite releived that my role is limited to following the nominations or a court order, as the case may be.

Much appreciate your time and efforts to help me.

Thanks again.


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