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About 66 percent of all cases in Indian courts are about real estate, and most of them are property disputes. Property disputes often start with claims from legal heirs or co-owners, disagreements over easement rights, misrepresentations by the seller, or a title deed that doesn’t accurately describe the property. If a dispute over a piece of property can’t be solved, the bank takes over the property and sells it at auction to make everyone happy.
A property dispute can also happen if, after the seller has received earnest money or a deposit, he or she gives quotes to other buyers. In this case, the person who bought the property before can go to court and try to get it back. In other disputes, buyers may question why a developer is taking so long to finish a project.
If someone bought a property that someone else had inherited, either through a gift deed or a will, it could also lead to a dispute. The terms of a will, probate, letters of administration, or succession certificate may apply to property that was left to you by a loved one.
01. Different kinds of Property Disputes
- Case 1: Title Disputes
- Case 2: Dispute between a buyer and a builder
- Case 3: When the builder took too long to pay the housing society
- Case 4: Disputes about the property that was left to someone
02. Tips and Tricks for Buying a Disputed Property
Different kinds of Property Disputes
Property disputes can be caused by a lot of different things and involve people like your neighbor, landlord or tenant, trespasser, homeowner associations, or even family members. Property disputes make up a large number of legal claims because there are so many different people involved. Damages to cover the plaintiff’s losses, an order for one party to pay for the repairs, and a ban on making changes to the property, like building a “spite fence,” are some of the legal remedies that can be sought.
Some of the common property disputes you might come across are:
The property title shows that you are the owner of a piece of land or a house. A strong proof of ownership must always be backed up by real documents. This keeps someone else from taking your property without your permission. The property’s title gives you the right to own it, use it, and make money from rent. You must look into all aspects of ownership and make sure that all documents are correct.
Take the following steps to make sure you don’t buy a property with a title dispute:
- You should ask the person selling you the property to show you all the necessary proofs of ownership, like a registered agreement, a stamp duty payment receipt, a document of inheritance, etc.
- If the person who lives there now inherited the land, you need to look at the will or probate in favor of the inheritor.
- If the land was mortgaged, you should look at all the paperwork at the bank to see if there are any outstanding loan payments or liens.
Case 2: Dispute between a buyer and a builder
Any real estate transaction is supposed to be a contract that must be followed by all parties involved. But builders often don’t live up to their end of the deal, leaving the buyer in a tough spot. Most disagreements between buyers and builders are about delays in getting the keys. Untrustworthy builders usually try to get money from the buyer, give the project to another developer without getting the right permission from society, and don’t follow the rules.
Things to look into:
Follow these tips when it comes to a project that is still being built or whose completion has been delayed:
- You should look at more than just the builder’s Commencement Certificate (CC). The builder must have the approved plans and all No Objection Certificates from the government agencies that need to be involved.
- You must ask the builder for a clear plan for when construction will be done so that claims can be made for property bookings related to construction.
- Visit the building site and talk to the people in charge of the housing society to find out how reliable the builder is.
- Check the builder’s past work, the number of projects they’ve finished, and if there are any lawsuits against them that are still going on.
Case 3: When the builder took too long to pay the housing society
If the builder is fixing up a housing society, they must pay the rent to the members of the housing society. The members of the housing society must be given temporary housing until the building is fixed up. If these rules aren’t followed, the buyer and the builder could get into a lot of trouble. During a financial crisis, the builder might declare bankruptcy, which would stop the project.
Things to look into:
- Here are some steps to take so that the builder’s failure to pay dues doesn’t affect your experience of buying a home:
- With the large amount of money you got, you could either invest it to make a profit or find another place to live.
- In the consent agreement you sign with the builder, you can include a clause with a heavy fine or a promise of another place to live.
Case 4: Disputes about the property that was left to someone
Whether you are an heir or not, you have to be very careful and precise when you buy a property that the seller got in a will. In these situations, there is always a chance of fraud. A disagreement can happen if the buyer doesn’t know how the current seller got the property, like whether it was through a will, probate, letters of administration, or a succession certificate.
Things to look into:
Follow the steps below to avoid getting into these kinds of fights:
- You need to make sure that the seller’s name is different from the previous owner’s name in any government or tax records.
- Ask for proof of inheritance, like a will, probate, letters of administration, or a succession certificate.
- Before you buy an inherited property, you should know what kind of heir got it, such as a widow, child, parent, or grandparent, and if they have the right to own it.
- It is also important to find out if the person who owned the property before the will died bought it on their own. If the previous owner got it through a will, they can’t give it to someone else in the same way.
Tips and Tricks for Buying a Disputed Property
Property disputes often start with claims from legal heirs or co-owners, disagreements over easement rights, misrepresentations by the seller, wrong descriptions of the property in the title deed, etc. Depending on the type of property dispute and the people involved, there are different things to consider. In the case of inherited property, the person whose name is on the title might not be legal, or there might be problems with the class of the heir.
Our court system is backed up with a lot of these kinds of cases. But if you do your research and pay close attention to the details, you can avoid these kinds of fights. Here are some tips and tricks that can help you:
- Verify the title: Do a thorough check of the property’s title that goes back at least 30 years. You can talk to a lawyer about doing a title search and verifying the property.
- National Building Code: The National Building Code says that all buildings in the country must be built in accordance with it (NBC). Even though all good developers have their plans approved by the government, not all of them follow the rules. You must make sure that this is the case.
- Compare building plans: Ask the builder for the approved plan for the property and compare it to the built-up area to see if there are any differences.
Check that the title has been changed correctly. To prove that someone has inherited property, the name of the beneficiary must be changed in government or tax records. Make sure that the property was transferred with the necessary proof of inheritance, such as a will, probate, letter of administration, succession certificate, or any other agreement.
- Check the stamp papers: The date on the stamp papers must match the date on the documents for the transfer of title. Also, make sure the stamp paper is real by looking for the watermark. If you put tracing paper over it, you should be able to see it. Use a legitimate verification site to check the security code, or use a verification app to scan the bar code on the stamp paper.
- Buy from bank auctions: If a bank buys a property that is in dispute, you can buy it by bidding on it at the bank’s auction. In some cases, these properties are sold for 30 percent less than what they are worth on the market.
- Transfer of utilities: In some buildings or areas, you have to pay for the utilities to be switched over to your name. This means paying deposits or transfer fees for electricity, gas, etc., or both.
- Renovate: This is a general suggestion for how to improve the quality of a property that has already been bought. You might have to paint, fix up, or even rebuild it. This could be because the house needs repairs or because you want your new home to fit your needs.
Disclaimer: The opinions shown above are mainly for informational reasons and are based on market research. Deal Acres is not responsible for any actions made as a result of relying on the provided material and makes no representations as to its accuracy, completeness, or reliability.