When a Jayanagar flat owner passed away in 2026 having named one son as the nominee with the housing society, the family assumed the flat was settled. It was not. The other children were still legal heirs, and the law treated the nominee son as a custodian holding the flat for the estate, not as its sole owner. This gap between who is named as nominee and who actually inherits is one of the most misunderstood points in Indian property, and it matters just as much to a buyer eyeing a resale flat as it does to a grieving family.

The short answer. A nominee to a flat, society share, bank deposit or investment is a trustee or custodian, not the absolute owner, and receiving the asset as nominee does not extinguish the rights of the legal heirs. Ownership is decided by succession, meaning a valid will, or where there is none, the intestate succession law that applies to the family. The trade-off for a buyer is caution: purchasing from a person who is only a nominee, without checking the succession position, can leave you exposed to claims from other heirs later. Confirm title, not just nomination.

The anchor authority is the Supreme Court of India, which in Indrani Wahi versus Registrar of Cooperative Societies (2016) held that a society must transfer its share to the nominee but that this has no bearing on the question of title, and in Shakti Yezdani versus Jayanand Jayant Salgaonkar (decided 14 December 2023) held that nomination does not confer ownership. Nominee versus legal heir for a flat in Bengaluru is therefore a title question, and it is settled against the idea that a nominee automatically owns.

What does a nominee actually receive?

A nominee receives the right to hold and deal with the asset administratively, not the ownership of it. The Supreme Court has described the nominee as holding the asset in trust for the legal heirs until succession is settled. So when a bank pays a balance to a nominee, or a society transfers its share to a nominee, it is discharging its own obligation to deal with one identified person, not deciding who finally owns the money or the flat. The nominee steps into a caretaker role, and is answerable to the heirs for the asset. This is why nomination forms are simple to fill and easy to change: they were designed as an administrative convenience for institutions, not as a substitute for a will.

Who actually inherits the property?

Ownership is decided by succession law, which overrides the nomination. If the deceased left a valid will, the person named in that will, through testamentary succession, is entitled to the property, regardless of who was recorded as nominee. If there is no will, the applicable intestate succession law, such as the Hindu Succession Act or the relevant personal law, decides who the heirs are and in what shares. The nominee may be one of those heirs, or may not be. Either way, the nomination does not create a separate third route of inheritance that beats the will or the succession statute. Our guide to the legal heir certificate versus succession certificate for Bengaluru families explains the documents heirs use to establish these rights.

How is a cooperative society flat treated?

For a flat held through a cooperative housing society, a valid nomination obliges the society to transfer its share or membership to the nominee, but that transfer does not settle final ownership. The Supreme Court in Indrani Wahi made this explicit: the society has no option but to transfer membership to the nominee, yet that step has no relevance to the issue of title between the successors, who remain free to pursue their inheritance rights in law. So a nominee who becomes the recorded member of the society still holds the flat subject to the claims of the other heirs. For a buyer, this means a society transfer certificate in a seller's name, obtained through nomination, is not proof that the seller is the sole owner entitled to sell.

The reading for a Bengaluru buyer is that a society record alone is a starting point, not a conclusion, on who may lawfully sell the flat.

What does this mean when buying a resale flat?

If the seller inherited the flat, you need to trace the succession, not just the nomination, before you buy. A seller who is only a nominee may not be the sole owner, and other heirs can surface with a claim after your purchase. The safe approach is to check whether there is a will and whether it has been acted on, to identify all the legal heirs, and to insist that every heir with a share joins the sale or formally releases their claim. This sits alongside the usual title chain review, because a clean chain of ownership documents is what protects you. Our guide to reading the mother deed and title chain of a Bengaluru property shows how that verification is done.

Does a will always beat a nomination?

A valid will controls the property over a nomination, because the courts have consistently held nomination is not a mode of succession. If the deceased made a properly executed will naming a beneficiary for the flat, that beneficiary is entitled to it even if someone else was the nominee. Where the will and the nomination point to different people, the will prevails on ownership, while the nominee may still have received the asset administratively and must account for it. This is exactly why families are advised to make a will rather than rely on nomination, and why a buyer should ask to see the will where the seller claims to have inherited.

It helps to see why the confusion is so common. Institutions like banks and societies talk to the nominee, pay the nominee and update their records in the nominee name, which makes the nominee look and feel like the owner in every practical dealing. Nothing in that daily interaction signals that a separate ownership question is unresolved underneath. The courts have simply drawn a line between administration, which the nominee handles, and title, which succession decides. For most families the two never conflict, because the nominee is also the sole heir. The problems arise in the minority of cases where they are different people, and those are precisely the cases where a buyer can be caught out.

What should a family do to avoid disputes?

The cleanest protection is a will, supported by clear records, so that ownership and administration point to the same people. Nomination still has value, because it lets the institution release the asset quickly to a trusted person without waiting for a succession certificate, which reduces friction in the short term. But it should be treated as a bridge, not a destination. A family that wants the flat to go to a particular person should say so in a will, keep the nomination consistent with it, and make sure the heirs understand the position, so that the nominee is not left defending a claim they never expected.

What should a buyer verify before purchase?

Before buying a resale flat that the seller inherited, work through a short verification list so a nominee based title does not become your problem.

1. Ask whether the previous owner left a will, and if so, obtain a copy and check who the flat was left to.
2. Identify every legal heir of the previous owner, not just the person recorded as nominee.
3. Confirm whether the seller holds the flat as sole owner or only as a nominee or one of several heirs.
4. Insist that all heirs with a share either join the sale deed or execute a registered release of their claim.
5. Review the full title chain and the society or khata records alongside the succession position.
6. Check for any pending succession dispute or caveat before you pay any advance.
7. Have a property lawyer confirm the succession and the seller right to sell before you sign.

If I am named nominee for a flat, do I automatically become the owner?

No. Nomination only tells the society or bank whom to deal with administratively. The Supreme Court has held the institution must transfer the asset to the nominee, but that transfer has no bearing on actual title. You hold the flat in trust, and the legal heirs can still establish their ownership rights through succession law.

Who gets the flat if there is a valid will?

The will controls. Courts have consistently ruled that nomination is not a substitute for succession and does not create a third way of inheriting. Whoever is named in a validly executed will is entitled to the flat, regardless of who was recorded as the nominee with the society, bank or registrar.

If there is no will, does the nominee have to share the flat with other heirs?

Yes, potentially. Without a will, intestate succession law decides who inherits, and it can include other legal heirs beyond the nominee. The Supreme Court ruling in Indrani Wahi confirms that nomination does not extinguish other heirs right to pursue their share, so a nominee may have to share ownership with them.

I am buying a resale flat from someone who inherited it. What is the risk?

The risk is that your seller is only a nominee or one of several heirs, and other heirs later claim a share. Protect yourself by tracing the will and succession, identifying all heirs, and ensuring each with a share joins the sale or releases their claim in writing before you pay. Have a lawyer confirm the seller right to sell.

Last updated 2026-07-07. PropNewz Team.