How to verify a property is not under dispute
Property buying decisions involve both emotional and financial investment. Whether it is about buying a commercial property or a residential one, one of the major aspects to check is that the property is not under legal dispute. Ignoring this aspect may lead to long-term litigation, mental stress and financial loss.
There are various common myths related to property disputes, but instead of focusing on them, today in this blog we will take you through the key methods and how to check property documents. This will ensure that the property is clear of all the disputes.
What is disputed or litigated property?
Properties are considered as disputed when there are legal conflicts between two parties. These disputes can be anything right from the boundaries, ownership, inheritance, title rights or even payment defaults. On the contrary, property litigation refers to the properties that are facing ongoing court issues or legal proceedings.
Property disputes may happen due to:
- Discrepancy in ownership of land and record or fake title documents.
- Multiple sales of the same property
- Arguments among family members or heirs over inheritance.
- Fake Power of Attorney (PoA) transactions.
- Encroachment on private or public land.
- Pending mortgages or loans.
When a property gets involved in the legal system, it will come under litigation, and making transactions for this property will put the property buyer at high risk.
How to check if the property is disputed?
Before undergoing any property related transactions, especially in urban cities, it is crucial to do a property litigation check. Below are some checks to ensure if the property is under dispute:
Verify the title deed and ownership chain
You should request for the original title deed from the seller. This document will confirm the legal owner of the property. You must verify the ownership history over the past 30 years to check about missing links or inconsistencies.
- Check multiple transactions in a short time interval, as it will be a sign of underlying problems.
- Ensure that the property hasn’t changed hands via dubious means like fabricated sales deeds or unregistered PoAs.
Look for Encumbrance Certificate (EC)
It is a document given by the sub-registrar office. These documents include:
- Outstanding loans
- Legal claims
- Court attachments
- Lis pendens which indicates that the property is under litigation.
An EC that contains an entry of liens or any current court matters will indicate a sign of dispute.
Search the e-courts portal and judicial databases
To gather more information about the property you can visit online platforms provided by Indian judiciary, like:
- e-courts portal
- National Judicial Data Grid (NJDG)
From these platforms buyers can get information regarding past legal cases by using party name, district or case number. By searching with the seller’s name or property address, buyers can check the litigation status.
Review local land and records along with mutation data
Every state has their own land record like Mahabhulekh for Maharashtra, Bhulekh for Uttar Pradesh, Dishaank for Karnataka and so on. From these platforms, buyers can check:
- Mutation records (change in property ownership)
- Boundary data and land map.
- Government acquisition notices.
Any issues in ownerships, mutations not mentioned in the official records, and illegal constructions will be a red flag for the buyers.
Check with the sub-registrar and revenue offices
You can rely solely on online platforms to know about the property, as they may not show the recent legal entries. You can personally visit the sub-registrar’s office or revenue department to know about the property or any legal notice.
As them about:
- Pending objections.
- Banks or government bodies notices
- Third party claims.
Use the CERSAI Registry
The Central Registry of Securitisation Asset Reconstruction and Security Interest (CERSAI) will let you know about the property mortgage to any financial institutions. This will keep the buyers informed about the charges or loans that may not be mentioned in the records.
Verify with housing society
- Ask for No dues certificate or No objection certificate (NOC) from the resident’s welfare association or residents.
- Look for any internal issues, society-related litigations or pending maintenance dues.
In case of a builder’s property, verify about their RERA registration.
Check government acquisition or zoning plans
Sometimes, property may be embarked for government acquisition or future development
- Stay informed about it from the City Development Authority or Municipal Planning Department.
- Check the zoning certificate to know the land usage permission like residential, commercial or agriculture.
Talk to neighbors and RWAs
You can also inquire about the property to local shopkeepers, neighbors or members of Resident Welfare Association (RWA). They often have information regarding the property’s history. They can let you know about known conflicts, past issues, or family disputes.
Outsource a property lawyer for due diligence
Ultimately to make informed decisions you can hire a property lawyer. These professionals can:
- Perform in-depth document verification.
- Check the litigation status
- Provide legal opinion regarding property’s viability.
What to do in case of property dispute?
If the property you have finalized is under dispute or litigation, you can do below-mentioned steps:
- Clear everything from the seller that includes court documents or legal notices.
- Hire a legal consultant to know the depth of disputes.
- Negotiate safer terms, like delay the sale until the case is resolved.
- In case of severe fraud or ongoing criminal litigation, don’t buy the property.
Conclusion
Most of the home buyers want to avail the investment opportunities in the emerging real estate market. But, it is important to verify the property and its disputes. This process is more than only scanning the title deed- right from verifying the legal encumbrances to litigation history, mutation records and tax payment, all the information matters the most.
Although it may seem to be a difficult task, with a streamline approach and the legal guidance of an expert you can avoid future risk. It is better to remain cautious while buying any property and know how to check property documents, to get the best from your hard earned money.
Contact Oree Reality if you want to buy dispute free residential or commercial spaces to keep your stress at a bay.
