How Can I Check if a Property Has Any Pending Legal Issues or Disputes ?

Understanding Legal Issues in Property Transactions

Before we dive into the specific steps to check for legal issues, it’s important to understand the kinds of legal problems that could arise in property transactions. Some common issues include:

1. 1. Title Disputes: A property’s title refers to the legal ownership of the property. If there are multiple claims over ownership or inheritance issues, the property may have a clouded title.

1. 1. Encumbrances: This refers to any legal liabilities on the property, such as unpaid loans or mortgages, that could affect the ownership transfer.

1. 1. Land Use Violations: Properties built on land zoned for a different purpose (e.g., residential property constructed on agricultural land) could face legal action from municipal or environmental authorities.

1. 1. Pending Litigation or Court Cases: Properties might be under dispute due to family inheritance issues, boundary disputes, or contractual disagreements. Any pending litigation involving the property could have a long-term effect on ownership rights.

1. 1. Illegal Construction: If the property has been built or modified without the necessary permits or approvals from local authorities, it could be subject to demolition or fines.

Now, let’s explore how you can check if a property has any of these pending legal issues.

1. Obtain a Title Search Report

One of the most effective ways to determine whether a property has any legal disputes is by obtaining a title search report. A title search is a legal process in which a lawyer or legal expert examines public records to confirm the ownership history of a property and identifies any claims or encumbrances.

Steps to Perform a Title Search:

• • Engage a Lawyer: While you can try to conduct a title search yourself, it is always advisable to hire a professional lawyer specializing in property matters. A lawyer can help you navigate through government records and provide a detailed report.

• • Visit the Sub-Registrar Office: In India, property transactions are registered at the Sub-Registrar’s office under the Registration Act, 1908. The lawyer will visit the relevant office to check records such as sale deeds, mortgages, and previous transaction details.

• • Search for Encumbrance Certificate: The Encumbrance Certificate (EC) is a crucial document in any property transaction. It records details of any mortgages or encumbrances on the property. You can obtain an EC from the Sub-Registrar office for a particular period (usually the last 30 years).

• • Verify Ownership History: The lawyer will look at the chain of ownership documents such as sale agreements, deed documents, and family settlement deeds to verify that the property is clear of disputes.

By obtaining a detailed title search report, you can assess whether the property is free from legal encumbrances and if there are any unresolved issues related to ownership.

2. Check for Encumbrance Certificates

An Encumbrance Certificate (EC) is one of the most critical documents to check for when verifying if a property has any legal encumbrances. This certificate provides information about any charges or mortgages on the property.

How to Obtain an Encumbrance Certificate:

• • Online Request: In many states in India, you can apply for an EC online via the respective state’s land records website. For example, the government of Maharashtra provides an online platform called Mahabhulekh for EC requests.

• • Manual Application: If online services are unavailable, you can approach the local Sub-Registrar’s office to request an EC for a specific property. You’ll need to provide details such as the property’s survey number, address, and the period for which you require the certificate.

• • Check the Details: The EC will show any existing loans, mortgages, or legal encumbrances tied to the property. If there are encumbrances, you’ll need to verify the loan status, the bank involved, and whether the encumbrances have been cleared.

An EC helps establish whether the property is free from any legal liabilities and if it can be transferred to a new owner without issues.

3. Review Property Documents

When considering a property for purchase, you should ask the seller for the following documents to ensure that everything is in order:

• • Sale Deed: The sale deed is the most important legal document that proves the ownership of the property. Ensure that the deed is executed properly and stamped. Any ambiguity or inconsistency in the document can be a red flag.

• • Title Deed: This deed outlines the history of the ownership transfer and will confirm whether the seller has clear ownership rights over the property.

• • Mutation Records: Mutation is the process of updating land records to reflect the new owner. Check the mutation records to verify the current ownership status.

• • Building Approval Plan and Occupancy Certificate (OC): If you are buying an apartment or a building, ask for the building approval plan and occupancy certificate from the local municipal authorities. These certificates confirm that the property was constructed as per legal norms and is compliant with local zoning laws.

• • Property Tax Receipts: Ensure that all property taxes are paid up-to-date. Unpaid property taxes could result in a lien on the property, which may complicate the transfer process.

By reviewing these documents, you can detect inconsistencies or gaps that could signal underlying legal issues with the property.

4. Check for Pending Court Cases

If there are any ongoing or pending court cases related to the property, these could cause delays or even prevent the successful transfer of ownership. It’s essential to check if there are any legal proceedings involving the property, such as family disputes, encroachment issues, or contractual disagreements.

How to Check for Pending Court Cases:

• • Visit the Local Court or District Court: You can visit the relevant court where the property is located and inquire about any pending cases related to the property. If you have the property’s legal description, the court can search their records.

• • Search Online Legal Databases: In many states, you can check for pending cases through the state’s court portal. For example, the Supreme Court of India, High Courts, and District Courts provide online services where you can search for cases by name or case number.

• • Ask the Seller to Provide a Declaration: Request the seller to provide an affidavit or declaration stating that there are no pending litigation matters involving the property. However, remember that this is not legally binding unless corroborated by other sources.

5. Verify Land Title with the Local Revenue Department

In India, the revenue department maintains records of land titles and ownership. You can verify a property’s land title and ownership history by checking the land records with the local revenue department. This is particularly important for agricultural land, as it is governed by specific laws, and any conversion to non-agricultural use must be approved by the relevant authorities.

How to Verify Land Records:

• • Online Land Records Portal: Several states in India, such as Haryana, Maharashtra, and Uttar Pradesh, provide online portals where you can check the ownership and title details of a property. The Bhulekh system, for example, offers online access to land records in many states.

• • Visit the Revenue Department: If online services are unavailable, visit the local tehsil or revenue office to obtain a copy of the land record for the property you are interested in. The record will help confirm the landowner’s identity and check for any discrepancies or disputes regarding ownership.

6. Consult with a Real Estate Lawyer

A real estate lawyer can play a crucial role in helping you navigate the legal complexities of property transactions. They can assist in reviewing documents, performing a title search, and advising you on any potential risks.

Why Consult a Lawyer?

• • Expert Advice: Lawyers specializing in real estate law can identify potential issues that might be missed by an untrained eye.

• • Title Verification: A lawyer can conduct a thorough title check and verify ownership history, helping you avoid buying a property with a disputed or unclear title.

• • Dispute Resolution: If any disputes or issues are identified, a lawyer can guide you through resolving the problem, whether it’s negotiating with the seller or handling court cases.

• • Drafting Legal Documents: A lawyer can also draft and review the sale agreement and ensure that it complies with all legal requirements.

7. Check the RERA Registration for Developers and Builders

For properties under construction or newly built apartments, it’s important to verify whether the builder or developer is registered with the Real Estate (Regulation and Development) Act (RERA). RERA aims to protect buyers by ensuring transparency and accountability from builders and developers.

How to Check RERA Registration:

• • Visit the RERA Website: Each state in India has its own RERA website. You can search for the builder’s registration details and verify whether they have a valid registration and license to develop properties in that region.

• • Check Project Details: For new projects, RERA also provides information about the project’s approval status, completion date, and any legal claims against the builder.

If a developer is not registered with RERA or has unresolved complaints, it can be a red flag indicating potential legal problems with the property.

Conclusion

Purchasing property in India requires careful due diligence to avoid legal pitfalls. By following the steps outlined in this guide, such as obtaining a title search, reviewing key property documents, verifying encumbrances, and consulting with professionals, you can significantly reduce the risk of encountering legal disputes after purchasing a property. Remember that property transactions are complex, and a small oversight can lead to long-term consequences.

Taking the time to verify that a property is free from legal disputes will ensure that your investment is safe and secure. Whether you are buying residential, commercial, or agricultural land, conducting thorough research and seeking professional advice is the key to a successful and trouble-free property transaction.