When it comes to buying or selling property, it’s crucial to steer clear of any disputes related to ownership. There are instances where the person selling the property isn’t its actual owner. This can happen in joint ownership situations—like between family members—where one party might sell the property without the others’ knowledge.
Such circumstances can create significant issues for the buyer, particularly if they’ve yet to take possession. Here are some strategies to help you avoid any pitfalls with disputed properties:
Verify Ownership Documents
If you’re uncertain about who the legitimate owner is, take the help of an expert. Before committing to a property, obtain photocopies of all relevant documents and consult the appropriate authorities. Examine the property’s title, which indicates ownership.
“Investigate the chain of ownership to see how many times the property has changed hands and who owned it previously. Don’t hesitate to ask the seller directly if they have any partners in the property. When you finalize the sale deed, include a clause stating that the seller is claiming to be the sole owner and will take responsibility for any future disputes. This clause strengthens your legal standing should any issues arise later,” suggests Pradeep Mishra, CMD, ORAM Developments.
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Address Tenant Situations
Once you’ve found the property you like and provided earnest money, schedule a time for registration. It’s essential to identify any current occupants. If there are tenants residing in the property, ask the seller to ensure that they will vacate the premises. Confirm that the tenants have moved out before proceeding with the registration. There have been numerous instances, not just in major cities like Delhi and Mumbai but also in smaller towns, where long-term tenants refused to leave when the property was sold. Some even demanded a substantial sum to vacate. Avoid complicating your investment with such headaches—opt for a property that’s free of such issues.
Disputes in builder projects
In recent years, numerous builders in the NCR region have found themselves embroiled in disputes with residents and Resident Welfare Associations over various issues. Common topics of contention include the timely submission of fees to authorities and unauthorized construction in shared spaces. Alarmingly, some builders have even set up commercial establishments in these common areas.
“As a prospective buyer, it’s crucial to do your due diligence before investing in a builder’s project. Always request and review the official plans approved by the relevant government agencies. It’s a good idea to keep a copy of these plans handy to avoid potential disputes down the line. If the project is fully constructed, don’t hesitate to ask for a completion certificate and consider having a structural engineer assess the quality of the construction,” informs Mishra.
Support of advertisement and home loan
When purchasing a property on resale, consider placing an advertisement in local newspapers to announce your intention. This notification gives others the opportunity to raise any disputes, thereby reinforcing your legal standing as a buyer. Furthermore, when you secure a home loan from a bank or financial institution, they will thoroughly scrutinize all property documents, which significantly reduces the risk of fraud.
By taking these precautions, you can make a wise investment that ensures your purchase is both sound and secure.