Can Two Friends Buy a House Together in India?

Many benefits come with joint or co-ownership of property, including combining resources and receiving a higher loan sanction limit, in addition to significant tax advantages.

Co-ownership of a home by a spouse or family member is typical. Buying a property with a friend has a different scenario involving many different aspects. Most of us think co-ownership of a property with a friend is possible. The answer is yes, but you must consider certain legal and financial implications before buying a property.

Joint Tenants or Tenants in Common

You can buy a property as a “joint tenant” or as “tenants in common.” Talking about a scenario where one of the joint tenants dies, then in case of joint tenancy, the interest of the deceased joint-owner in the property will automatically pass to surviving joint-owner upon the death. However, in the case of “tenants in common,” the deceased tenant’s interest will pass to his/her heirs (per the terms of the deceased’s will or the laws of succession in effect at the time of the deceased’s death and not to the surviving tenant in common.

Consequently, it is wise to specify the type of ownership interest in the property in the sale deed when you decide to purchase. If you are earning any income from the jointly held property, you should also speak with your tax implication of such joint holding.

Aspects to Consider Before Making Your Choice for Buying House with a Friend

Partnering with the Right Person

Buying a house is a big step, and it is both exciting and challenging, and it will undoubtedly present you with some unexpected obstacles. If you decide to embark on this journey with your friend, You want a partner who is reliable both financially and practically.

Housing Loan

Generally, it is easy to get a joint home loan between parents, spouses, children, and siblings. If we are talking about friends, banks do not approve loans for relationships other than those mentioned. In India, friends and unmarried couples are not allowed to take home loans.

The co-owner must make sure that they each have personal savings account with the bank where the loan will be obtained, and they must each provide guarantors on their behalf. Additionally, they need to confirm their ability to repay the loans. They also need to decide between the primary and secondary applicants.

Property Title

You should consult with a lawyer before investing because both of you will own a certain portion of the property. Having a sale agreement in both your and your friend’s names is crucial. Per joint registration of the agreement, you and your friend are both joint owners of a 50% share of the property.

Types of Co-Ownership

It is imperative to know about co-ownership. You should also consult with a tax advisor about the tax ramifications of such a joint purchase. According to the ownership shares, maintenance and other expenses are divided.

Property Transfer

It is good to sign a partition deed among co-owners, whether it’s between family, friends, or business partners. Each owner keeps his part and right if the owner opts to divide the property among themselves by an agreement. A new property title is issued for each property portion, which must get registered.

When joint owners pass away, the type of joint property ownership may sometimes precede the decedent’s will.

For example, if A and B are joint property owners and A passes away, his will specifies that his wife shall inherit the joint property. I and B are listed as joint tenants on the sale deed; B will receive the property instead of A’s wife. Therefore, it is crucial to specify the form of joint property ownership in the same deed.

If there are tenants in common, the deceased tenant’s interest will be transferred to his or her lawful heirs. In case of more than two joint tenants, each surviving joint tenant will receive a share of the property ownership.

Understanding Your Liability

Though it is essentially the same, buying a property with a friend or family member is frequently subject to even strict scrutiny even more harshly by mortgage lenders than buying individually or as a couple. It becomes crucial to understand your liability and the roles involved.

The Bottom Line for Buying House with a Friend

Buying a house with a friend has many advantages. You get to divide all the expenses, including utilities, maintenance or repair fees, and the mortgage payment, if any, which makes it simpler for you to qualify for a mortgage. However, sometimes this sign comes with its share of difficulties, so it is crucial to take your time making a choice. Make sure you and your friend have sufficient money to cover the investment’s monthly expenses by doing your research in advance.


A cost-effective strategy to climb the property ladder is to co-own a property with friends or relatives. It can, however, also be a rapid method to strain a lifetime relationship and create challenges that are hard to overcome. Legal contracts drawn up before purchase can alleviate the stress of co-ownership and help you avoid many common pitfalls.


Can two friends buy a house together in India?

Yes, two friends can buy a house in India.

Who can be a joint owner?

There are no specific laws that govern who can become a joint owner. Joint owners can be your spouse, parents, children, brother, sister, business partner, or friends.

What is the deed of trust?

After you agree on how to split the proceeds and future sales, your advocate will draw up a deed of trust with details of the agreement and transactions.

What is entitlement?

Entitlement decides who holds the title. It decides who can sign the documents and agreements. Later, property transfers will be based on this criterion of the document.