Take resident flat with co-owner and co-owner not in blood

Hi there,

Yes, you can buy a house with a friend. There is no legal requirement for a person to buy a house only with family members and you can buy it jointly with any other person. You can purchase the property either as ‘joint tenants’ or as ‘tenants in common’.

In the case of a joint tenancy, upon the death of one of you, the interest of the deceased joint-owner in the house will automatically pass to the surviving joint-owner, whereas in the case of ‘tenants in common’, the interest of the deceased tenant will pass to his or her heirs (as per the Will or as per the laws of succession applicable to the deceased at the time of his or her death) and not the surviving tenant in common. 

It is, therefore, advisable to clarify the nature of your interest in the property in the sale deed at the time of purchasing the property. In case the house forms part of a co-operative housing society, you should ensure that the by-laws of the housing society allow you and your friend to purchase the house as tenants in common or joint tenants. So the answer to your question, yes, but some legal and financial implications need to be considered before you decide to go ahead with your decision.

• It is easy to secure joint home loans between spouses, between children and parents, and between siblings. However, banks do not sanction joint home loans for relations other than those mentioned above. Friends or unmarried couples are not allowed to take joint housing loans in India. You and your friend should ensure that you have individual savings account with a bank from where the loan is to be availed of and must individually give guarantors. Besides, you must make ensure that you both have loan re-payment capability. You also need to decide about the primary and secondary applicants.
• As both of you will have a definite share in the property, it is thus advised to discuss the options with a lawyer before proceeding with the investment.  It is important to have a sale agreement under your as well as your friend's name. Joint registration of agreement implies both you and your friend are joint owners of the apartment with an equal share of 50 percent each.
• It is also crucial to record the type of co-ownership - joint tenants or tenants in common, in case of joint property ownership with a non-relative. Consulting a tax adviser on tax implications of such joint purchases and holdings is also recommended.  The maintenance and other expenses are shared in proportion to the ownership shares.
• Whether joint ownership is between family members, friends, or business partners, it is advisable to sign a partition deed among co-owners. When the owners decide to divide the property among themselves through an agreement, each retains his share and rights. Each portion of the property gets a new property title which needs to be registered.

I hope I was able to answer your queries. 

With regards,

Samayeta Bal. 

Yes, there are no legal impediments.