Can A Co-Heir Sell Their Share Of The Inherited Property?

A co-heir can sell their share of the inherited property, but the process involves several legal considerations. The ownership of inherited property by multiple legal heirs makes them co-owners of the property, and each co-owner has the right to transfer or sell their individual share.

1. Co-Heir's Right to Sell Their Share

Under Indian law, each legal heir or co-heir has the right to sell or transfer their individual share of inherited property. This right is not dependent on the agreement or approval of other co-heirs, as long as the transaction only involves the share of the seller and not the entire property. The share of each heir is determined by the legal succession laws (e.g., Indian Succession Act, Hindu Succession Act, etc.) or based on the terms of the will (if applicable).

2. Sale Process of a Co-Heir's Share

Title and Ownership:

Before selling, the co-heir must have clear title and ownership of their inherited share. They should ensure that the share is properly recognized in the legal documents.

Agreement and Documentation:

The sale of a share in inherited property can be done through a sale agreement, where the co-heir can sell their share to another person (either another co-heir or an outsider). The agreement must be in writing and properly executed with witnesses.

Stamp Duty and Registration:

The sale deed must be registered with the sub-registrar office, and the applicable stamp duty must be paid based on the market value of the sold share.

3. Partition of Property Before Sale

If the property is not partitioned among the co-heirs, it can be difficult to determine the exact share of each co-heir in the property. In such cases, a family settlement or a formal partition deed may be needed to clearly define and demarcate the share of each heir. The co-heir selling their share must have a clear understanding of the extent of their ownership, which may require the property to be partitioned through mutual consent or court proceedings.

Partition Deed:

If all co-heirs agree, they can execute a partition deed to divide the property, which will make the ownership clear. Once the property is partitioned, each co-heir's share becomes distinct and can be sold independently.

4. Right of First Refusal for Other Co-Heirs

In some cases, if a co-heir intends to sell their share of the inherited property, the other co-heirs might have the right of first refusal. This means the other co-heirs have the option to buy the share before it is sold to an outsider. This right is not automatically applicable by law but can be included in a family agreement or partition agreement if agreed upon by all parties.

5. Sale to Outsiders and Impact on Co-Ownership

If the co-heir sells their share to an outsider, the other co-heirs will continue to hold their own shares. The new buyer becomes a tenant-in-common with the remaining co-heirs, which means the co-ownership will continue. The buyer will only have rights to the specific share they purchased and cannot claim ownership of the entire property. The buyer of the share does not automatically acquire the right to use or manage the entire property unless an agreement is made with the other co-heirs regarding the use or management of the property.

6. Challenges in Selling the Share

Legal Disputes:

If there are disputes or unresolved issues regarding the division of property, a co-heir might face difficulties in selling their share. In such cases, it may be necessary to file a suit for partition in a court of law to get an official decree determining the share of each heir and the possibility of selling it.

Disagreements Among Co-Heirs:

If other co-heirs do not agree with the sale, they may challenge the sale in court, especially if the sale is seen as detrimental to their interests.

7. Example

• Example 1: Mr. A inherits a piece of land along with his two siblings. Mr. A wants to sell his share of the land. He can sell his share to an outsider, but the sale must be documented with proper legal formalities (sale deed, stamp duty, registration). The two siblings will continue to hold their shares, and the buyer will only own Mr. A’s share.
• Example 2: Mrs. B and her brother, Mr. C, inherit a house. Mrs. B wants to sell her share to an outsider. If Mr. C does not want the property to be sold to an outsider, he may exercise his right of first refusal (if agreed upon earlier) and buy Mrs. B's share. If there is no such agreement, Mrs. B can proceed to sell the share to a third party, and the house will continue to be co-owned by Mr. C and the buyer of Mrs. B's share.

8. Co-Ownership After Sale

After the sale, the remaining co-heirs and the new owner will jointly hold the property. If there are any issues regarding the use, management, or sale of the entire property, the parties may need to reach an agreement or seek legal intervention to resolve disputes.

Conclusion:

A co-heir can legally sell their share of inherited property. However, the sale process involves ensuring the share is clearly demarcated, particularly if the property has not been partitioned. Legal documentation, including the sale deed, registration, and payment of stamp duty, are required. If there is any dispute or uncertainty about the share, the property may need to be formally partitioned. Co-heirs also need to consider whether any right of first refusal or family agreements exist. Selling to an outsider is allowed but may affect the co-ownership dynamics.