Secure Your Property Purchase: Essential Checks to Avoid Ownership Disputes

October 27, 2024 By: Diwanshu Dika

In India, buying property can sometimes lead to complications. Imagine you invest in a property, only to discover that others claim it as well or that it’s been sold multiple times. These disputes often arise with resale properties or those that have been bought and sold many times. Whether it’s residential, commercial, or agricultural land, it’s essential to ensure you’re the undisputed owner once the deal is closed. Here are five critical steps to make sure you’re not caught off guard and that your property remains yours without any claims from others.

1. Get Original Property Documents: Trust Only What You See

When buying a property, especially on resale, the first and most crucial step is to ask for original documents. Sellers may hesitate to provide these until the deal is sealed, but as a buyer, you have every right to inspect them. The original papers are your primary proof that the property belongs to the person you’re dealing with.

After providing a token payment, request photocopies of key documents, including the sale deed, title, and records of prior owners. These copies will give you a complete view of the ownership chain and help verify if any issues exist with the title. Ensure the following documents are in order:

• Sale deed: Shows ownership and previous sales.
• Sale chain: Track previous ownerships and sales to know if it was ever contested.
• Land use and title details: Clarifies if it’s meant for residential, commercial, or agricultural purposes.
• Possession certificate: Confirms that the seller holds physical control of the property.
• Payment receipts: Helps verify if all taxes and other fees are cleared.

Ensuring the property has a clear ownership history minimizes the risk of any third-party claims in the future.

2. Verify the Property Title: Ensure It’s Free from Dispute

The title of a property is a legal term that describes who owns the property. Title verification is crucial to ensure the seller has complete rights to sell the property without any other owner’s involvement. Verify the title through official records at the sub-registrar’s office.

The title might have been inherited, bought, or gifted. For instance:

• Purchased property: Check if the seller bought it with their funds.
• Inherited or gifted property: If inherited or gifted, ensure a legally valid will or gift deed backs the ownership claim.
• Co-owned property: If multiple owners exist, all should provide a no-objection certificate to confirm there’s no co-owner dispute.

Checking these documents will help avoid issues related to inheritance claims, ensuring that no legal disputes arise after your purchase.

3. Check the Seller’s Background: Confirm Sole Ownership

It’s wise to gather details about the seller to ensure there are no hidden surprises. If the seller has any co-owners or the property is jointly owned, ensure each co-owner has agreed to sell. The jointly owned property requires a consent letter from each party, protecting you from future claims.

Verifying the seller’s mental health is also essential. Any deals made by a person who isn’t mentally sound can later be declared invalid. Therefore:

• Confirm sole ownership: Check if any co-owners exist.
• Check mental stability: A mentally competent seller ensures a legally sound deal.
• Look for any disputes: Verify that no third party has contested the ownership previously.

Taking these steps will help you avoid getting entangled in co-ownership issues or possible mental competency disputes.

4. Verify Zoning and Usage Regulations: Know the Property’s Limits

Zoning laws determine how land can be used—whether for residential, commercial, or agricultural purposes. Ignoring this aspect may leave you stuck with a property that doesn’t fit your planned use. To check permissible uses:

• Check land-use certificates: These indicate the type of activities allowed on the property.
• Consult local authorities: Local or zonal planning offices can confirm if your intended use aligns with regulations.
• Ask about future restrictions: If any expansion plans are in place, check if these will affect your property.

For example, if you wish to build a home and lease part of it as commercial space, verify if mixed-use zoning is permitted. Understanding these regulations ensures that your purchase aligns with future development plans.

5. Review the Sale Deed and Ownership Chain: Keep It Clear and Fair

The sale deed is the contract that finalizes the property transaction between buyer and seller. Ensure this document is detailed and includes clauses protecting your interests. A well-prepared sale deed should mention:

• Clear terms of sale: Specify the payment terms, sale price, and size of the property.
• Outstanding dues: The seller should clear any pending dues or charges before the transaction.
• Previous owners and sale chain: This should reflect every previous owner to avoid future disputes.

This document confirms the property’s authenticity, price, terms, and any conditions related to repairs or outstanding dues. After you check the sale deed, verify that there are no inconsistencies in past ownership records. This will confirm that no previous claimants can interfere with your ownership.

6. Obtain a Possession Certificate: Ensure You Have the Right to Occupy

After all documentation is verified, confirm that the seller holds physical possession of the property. This is a critical step because possession confirms that the seller has control over the property they are selling. If there is a tenant on the property, ask the seller to vacate it before final payment. Once registration is complete, ensure you take immediate possession by:

• Changing locks: Place your lock on the property immediately to signify your ownership.
• Public notification: Consider publishing a notice in local newspapers announcing your purchase and inviting any objections. This step serves as a public declaration of your ownership, which can be valuable if disputes arise.

This final step secures your right to occupy and reinforces that the property belongs to you without any pending claims.

Conclusion

In India, safeguarding your property purchase involves taking these essential steps to avoid future disputes. Follow these checks diligently to make your real estate purchase safe, secure, and dispute-free. This methodical approach helps ensure that your investment remains solid, making your property-buying journey successful.