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Ownership Interest in Real Property


1. Introduction- Ownership Interests in Real Property

An owner's rights to the investment are referred to as an ownership interest in a property in real estate. The ownership stake is typically divided among multiple owners according to the amount invested in the property.

Any property in which you have an ownership interest may be used reasonably. For instance, you would be eligible for a proportionate part of the profits if you and other investors jointly own an investment property.

2. Individual Ownership-

Many ways a person can hold, transfer, use, or profit from a piece of real estate are known as ownership interests in real estate. A person is entitled to the "bundle of rights" that comes with receiving a title to a piece of real estate if they have an ownership interest in the property.

The owner is the only person who owns the property when it is purchased and registered in their name. "sole ownership" or "individual ownership of property" refers to this kind of ownership.

The owner is the only person who owns the property when it is purchased and registered in their name. "sole ownership" or "individual ownership of property" refers to this kind of ownership. It's important to remember that if the sale deed is registered only in the name of the principal buyer, even if other parties helped the owner get the money for the property, they don't own it. An example of the same is mentioned below.

Let's say a buyer has enlisted the assistance of his wife in putting together the down payment for a house. Let's say he also adds his wife to the home loan application as a co-applicant. However, the husband's name is ultimately registered for the property. In this case, the husband would be the sole owner of the property. Although the wife will indeed have a legal right to the property, the country's prevalent inheritance laws will not change the fact that the husband is the sole owner of the property.

 

3. Group Ownership-

Joint ownership is when more than one individual owns a piece of property." For example, in a coparcenary, the male members and daughters share an equal interest in the property of their ancestors.

An immovable asset is considered jointly owned when registered in more than one person's name. The term "joint owners" or "co-owners" of the immovable asset refers to the people whose names appear on the title to the property in such ownership. It is important to note that there is no legal distinction between co-ownership and joint ownership of property, and the two terms are interchangeable.

4. Trust Ownership-

In a fiduciary arrangement known as a trust, one party—the trustor—grants another—the trustee—the power to hold title to real estate or other assets for the benefit of a third party—the beneficiary.

To save time, cut down on paperwork, and, in some instances, avoid or reduce inheritance or estate taxes, trusts are established to ensure that the trustor's assets are distributed in accordance with their wishes. In finance, a trust can also be a type of closed-end fund established as a public limited company.

The founder or settlor of an "ownership trust" gives a trustee or trustees (in a fiduciary capacity) ownership of assets or property to hold for the benefit of the trust's defined or determinable beneficiaries.

For the benefit of the beneficiaries (as designated by the settlor) or the beneficiaries and the settlor, a trust is a legal obligation that attaches property ownership to the confidence placed by the settlor in the trustee.

5. Foreign Investors-

A person who invests within the Union but is not a citizen is referred to as a "Foreign Investor."

Foreign capital flows into Indian real estate grew by three times to USD 24 billion between 2017 and 21 compared to the previous five years, according to recent research released by Colliers in partnership with FICCI.

In 2017, foreign investors began investing more optimistically in the nation, who had previously avoided the Indian real estate market due to a lack of transparency. Compared to 37% in the five years prior, the proportion of foreign investments in Indian real estate increased to 82% between 2017 and 2021. The 2016 implementation of regulatory reforms fueled this rise.

Investors continue to invest in developers who have demonstrated proficiency in their respective business fields to construct and acquire long-term sustainable assets." More structured Capital is likely to flow into the sector with residential sales continuing to do well across markets in India and available opportunities to grow for developers," states Piyush Gupta, managing director, Capital Markets and Investment Services, Colliers India.

With the exception of 2021, when the amount of investments nearly halved, foreign investments in the office sector have consistently exceeded USD2.0 billion every year since 2017. On the other hand, only 18% of all foreign investments go into the mixed-use sector. From 2017 to 21, foreign investments dominated the office sector.

Foreign investors remained wary of the residential market in the wake of the NBFC crisis and slow residential sales. As a result, from 37% over the preceding five years, the proportion of residential assets in total foreign investments decreased to 11% in 2017-2021.

Since 2017, the combined share of investments from the United States and Canada in foreign investments has been greater than 60%. According to the report, the funds from the United States and Canada continue to actively explore the industrial segment, in addition to the office and mixed-use assets, despite the difficulties posed by the pandemic.

6. Summary-

The collection of rights that one or more owners have over property is the ownership interest in that property. When there are several property owners, each owner's interest in the property is typically based on how much they own or have invested in it.

 





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