Despite all the buzz around RERA, buying real estate in India can sometimes turn into a nightmarish exercise – a sinking quagmire of bureaucracy, loopholes, and vague regulations.
It’s a nightmare that can run circles around you. And then you might find yourself staring at the long arm of the Indian judiciary! It is estimated that around 2/3rd of the cases pending with the Indian judiciary are related to real estate disputes!
Real estate disputes occur because of fraudulent transactions, but there are ways to avoid them if you are a little cautious and well-informed.
We bring you five of the most common property disputes and how you can avoid them:
Disputes regarding title of the property
Make sure you have a valid title to the real estate property you own. With the absence of digitised land records in our country, frauds relating to the title of the real estate property are quite common. Title frauds are more common when you buy a standalone property.
Title frauds can be avoided by verifying all the documents related to the property and using the services of a lawyer if required. You can also buy Title Insurance, which can provide immunity in case of property frauds.
Disputes between builders/developers and buyers
Any property transaction is essentially a contract between the buyer and the builder or developer. However, there have been numerous instances of the builder not meeting their part of the agreement, leaving buyers in the lurch.
To avoid cases of these kinds, buy properties from reputed builders only.
And if you are unsure about the reputation of the builder, there’s always RERA! You should never buy a property that is not RERA-registered and approved.
Disputes relating to willed or inherited properties
Disputes regarding inherited or willed property are also common. Conflicts may arise when a person inherits the property through a will, and others challenge the veracity of the will. Disputes also occur when a person dies intestate (without a will).
These kind of problems regarding willed property can be avoided by making a will with all proper precautions through all the approved legal means.
You can read more on how to make a will here.
In the case of intestate death, the laws of succession hold good. If you are buying a property, make sure that the sellers are clear title holders, especially when it is inherited or willed property.
Disputes regarding non-provision of Occupancy Certificate
We see many apartments/residential projects being completed, but buyers cannot move into their new home unless and until the builder gets an Occupancy Certificate from the authorities. Typically, a delay in issuing the Occupancy Certificate occurs when developers flout certain norms.
You can avoid disputes of this nature by ensuring regular inspections of the property you have bought. If you find irregularities/departures from the approved plans, it is good to raise a red flag immediately. Also, choosing reputed builders/ pre-approved projects will help you.
It may also be good to draw up a payment schedule in such a way that you pay the final instalments only after all the pre-drawn conditions are met.
Misuse of rented/leased property
Disputes in India are also common when it comes to rented/leased property. The dispute can arise between the owner and tenant or between the tenant and the local welfare association.
Disputes of this nature can be avoided by making a rental/lease agreement with clear rules and expectations regarding the upkeep and maintenance of the leased/rented out property.
Nice blog related Most Common Property Disputes.