Buying a Property in your parents name? Read this before you decide
Why People Register Property in Parents' Names
There are three common reasons:
Financial security for parents: Many people do this for their parents’ financial security.You want them to have an asset in their name.
You live in another city or country: the son or daughter is working in another city or country and wants the property to stay safe within the family.
NRI restrictions on agricultural land: NRIs often cannot buy agricultural land directly, so they register it in their parents’ name who live locally.
Each reason makes sense. But ownership has long-term consequences most buyers don't think through at purchase time.
The Question That Changes Everything
Everything feels fine at first. Then one question surfaces:
“After my parents demise, will my sibling also get a share in this property?”
Here's the legal reality most people miss.
The sale deed determines ownership. Not who paid.
If your parents' names are on the sale deed, they are the legal owners. It does not matter that you paid the full amount.
After their demise, succession law applies. The property gets divided among all legal heirs. That usually means all children — not just the one who funded the purchase.
Many families are unaware of this.
Things People Try That Don’t Work
Adding a clause in the sale deed
Can you add yourself as a "legal heir" directly in the sale deed?
No. A legal heir is determined only after death. You cannot pre-designate inheritance in a sale document while the owner is alive.
Making a Will
Yes, your parents can create a Will specifying who inherits the property.
But… Wills can be contested. Other heirs can dispute them in court. This leads to delays, legal costs, and family conflict.
A Will helps. But It's not always a completely stress-free solution.
The The Safest Option:Joint Ownership with Right of Survivorship
Register the property in both names from day one — parent and child as joint owners.
When structured with joint tenancy (right of survivorship), this offers clear protection:
- Both are legal owners from purchase date
- Ownership terms are documented upfront
- Home loans, tax benefits, and resale become simpler
- Family disputes become less likely
The key benefit: If one owner passes away, the entire property transfers automatically to the surviving owner. Other legal heirs typically have no claim.
If you're an NRI or live in another city, joint registration can still happen. A Power of Attorney allows a trusted person to execute the registration on your behalf.
" A small decision at purchase time prevents years of confusion later. If you're buying a property in a parent's name, consider joint ownership."
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