Property disputes form a large chunk of cases that clog our judicial system. Around 66 per cent of all cases, are property-related litigations. There are several types of property dispute. Most of the disputes pertain to the title of the immovable property. Saying that ‘a person has a good title over the property’, implies that such a person has a right to enjoy the rights or interests in the property, possession, use, income by way of rent, etc. You have to prove the title of the property through appropriate documentary evidence.
Dispute pertaining to a property, often arise through claims from legal heirs, co-owners, disputes over easement rights, wrong representation by the seller, improper description of the property in the title deed, etc. A dispute may also arise when a party to the transaction, after receiving the earnest money or advance money, refuses to perform his part of the contract and approaches another buyer and takes consideration from him. In this matter, the previous purchaser can approach the court and contest the title of the property. There may also be disputes pertaining to delays in the delivery of possession of flats, by developers to buyers.
Another common dispute arises, when a property is acquired either through a gift or under a will. In such cases, a party may contend that the process of transferring the property through a will or gift, is not valid in the eyes of law. With respect to an inherited property, disputes generally arise, when a purchaser buys such an inherited property, without the knowledge that it is an inherited property. An inherited property may be subject to conditions of the will, probate, letters of administration or succession certificate.
How to avoid property disputes and minimise the risk involved
1. Title search
Before purchasing a property, conduct a thorough verification and perusal of the title documents of the property, for at least 30 years. The title search and property verification are generally conducted by an advocate, or a reputed title investigator. Another way of ensuring if the property is legally clear, is to see if it has been approved by leading banks. Banks will only approve of properties, which have legal clearances and valid documents. Also, ensure that the property is not mortgaged.
2. Sanctioned plans
You must ask the builder for the sanctioned plan and compare the same with the actual built-up area. Doing this is imperative, because many times, the sanctioned plan is not same as the built area and such a construction amounts to an illegal construction.
While investing in an inherited property, ensure that the name of the beneficiary is mutated in the relevant government or revenue records, depending upon the nature of the property. Ensure that such a property was transferred, with the requisite proof of inheritance – for example, a will, or probate, or letter of administration or succession certificate, or by any mutual understanding. In case there is no will, ensure that the property was distributed, as per the applicable succession laws.
4. Sale deed dates
Ensure that the date on the stamp papers, match with the date of transfer of title documents.
5. Municipal approvals
Ensure that your house plan has all the requisite approvals, needed from the different departments of the municipal corporation. Make sure that any licenses, if required, have been obtained from the appropriate departments.