Essential to Understand Legal Process for Sale of Share in Ancestral Joint Property

When selling a share of ancestral property held jointly by a family, such as land or a house, objections may be raised by co-owners. The reasons for these disputes could be interference by a third party in the family property or financial issues. According to a report by The Economic Times, such disputes also create difficulties for buyers, as the title of the property remains only on paper due to the lack of peaceful possession, and the buyer cannot enjoy it. Therefore, for the benefit of both the seller and the buyer, certain legal steps are necessary before selling a share of joint ancestral property.

These practical problems were discussed by a panel of experts at the ET Wealth Expo 2026. The panel included Sadhav Mishra, Senior Partner and Real Estate Head at SNG & Partners Advocates and Solicitors, Amit H. Wadhwani, Real Estate Partner at Khaitan & Co, Farid Karachiwala, Partner at J. Sagar Associates, and Sagar Kadam, Partner at DSK Legal.

In the case of land property, suppose four brothers own a large ancestral land and one brother wants to sell his 25% share, while the other brothers wish to keep their shares. Amit H. Wadhwani, Partner at Khaitan & Co, stated that in such a case, it should first be examined whether any notional division of the land share has occurred, indicated by a map showing which brother holds which part of the land. Additionally, there should be other documents supporting the ownership of each brother's share. For example, if the eastern side of the land belongs to brother number 4, then with such a clear arrangement, brother number 1 can sell his share to a third party and it remains legally valid.

However, Wadhwani warned that this arrangement cannot prevent other brothers from disputing the sale. Other brothers may argue that the notional division was merely a family arrangement and brother number 1 does not have an undivided interest, therefore he requires the consent of other brothers. Another issue could be FSI (Floor Space Index). In the case of undivided interest, brother number 1 could sell the best part of the land, while other brothers might get lower-value portions.

To prevent these problems, Wadhwani suggested that a partition of the land should be carried out before deciding to sell, so that your share can be recorded and there is a clear mention of which part you own. Another option is to obtain a property card or revenue certificate validating this partition and then proceed with the sale.

In the case of residential properties, the situation is different. Farid Karachiwala, Partner at J. Sagar Associates, stated that a joint owner in a residential property cannot unilaterally sell their undivided share to a third party. This is because other joint owners may be residing in the residential property and third parties cannot enter the house without interference. According to Karachiwala, in such cases, the co-owner should first file a suit for partition or, if the partition of the property is not possible, demand their share.

Regarding commercial properties purchased by a group of investors, Karachiwala said that the agreement should clearly state what will happen if a member withdraws or sells their share to a third party. All these key terms should be noted at the time of purchase.