This page provides a simplified summary of key terms. It does not replace the full Co-Ownership Agreement. Investors must review and execute the complete agreement before purchasing any fractional unit.
1. What Is Co-Ownership?
Co-ownership means that multiple individuals legally own defined fractional shares in the same immovable property.
Each unit holder:
- Owns a proportional share
- Has rights as defined in the agreement
- Is bound by collective decision rules
Ownership is documented through:
- Special Power of Attorney (SPA)
- Fractional Ownership Agreement
- Transfer documentation (where applicable)
2. Ownership Structure
- The total property value is divided into defined fractional units.
- Each unit represents a specific percentage of ownership.
- Units are allocated based on investment amount.
- All co-owners collectively own the underlying property.
The LLP acts as a facilitator and administrative manager, not as the property owner (unless explicitly stated).
3. Rights of Unit Holders
Each co-owner may have the right to:
- Receive documented proof of ownership
- Participate in major property decisions (as defined)
- Transfer or sell their fractional unit (subject to terms)
- Receive proportional share of proceeds if property is sold
Rights are always subject to the executed agreement.
4. Responsibilities of Unit Holders
Co-owners are responsible for:
- Complying with the agreement terms
- Completing KYC requirements
- Paying applicable taxes
- Following transfer procedures
- Acting in good faith toward other co-owners
Failure to comply may result in suspension of rights as per agreement terms.
5. Decision-Making Process
Certain decisions may require:
- Majority approval of co-owners
- Supermajority approval (e.g., 75%)
- Unanimous consent (in special cases)
Examples of decisions that may require collective approval:
- Sale of entire property
- Major redevelopment
- Change in property usage
- Appointment of new administrative manager
Voting rights are generally proportional to ownership percentage unless otherwise specified.
6. Transfer & Exit
Fractional units:
- Are transferable subject to agreement terms
- Are not publicly traded securities
- May require approval or notification before transfer
- Must comply with KYC & AML checks
Resale value is determined by market conditions and mutual agreement between buyer and seller.
Liquidity is not guaranteed.
7. Income & Distribution (If Applicable)
If the property generates income (e.g., rent):
- Distribution is proportional to ownership share
- Deductions may apply (maintenance, taxes, expenses)
- Income is not guaranteed
If the property is sold:
- Net sale proceeds are distributed proportionally
- Applicable taxes and statutory charges apply
8. Property Management
The LLP may act as:
- Marketing facilitator
- Administrative coordinator
- Documentation handler
Operational management terms will be defined in the executed agreement.
The LLP does not guarantee rental income or capital appreciation.
9. Risk Factors
Co-ownership involves risks, including:
- Market fluctuations
- Limited liquidity
- Regulatory changes
- Co-owner disputes
- Property-specific risks
Investors must review the Risk Disclosure Statement before investing.
10. Dispute Resolution
Disputes between co-owners or with the LLP are generally resolved through:
- Mutual discussion
- Mediation (if applicable)
- Arbitration under Indian law
Jurisdiction shall be as defined in the executed agreement.
11. Termination of Co-Ownership
Co-ownership may terminate upon:
- Sale of entire property
- Mutual agreement of all co-owners
- Legal order
- Events specified in the agreement
Upon termination, proceeds (if any) are distributed proportionally after deductions.
Important Legal Notice
This summary is for informational purposes only.
Fractional units represent co-ownership rights in immovable property and are not securities, deposit schemes, or guaranteed return products.
Investors must:
- Review the full Co-Ownership Agreement
- Conduct independent due diligence
- Consult legal and financial advisors