Top 5 ways to avoid property disputes in India

Property Disputes in India
Real Estate » Top 5 ways to avoid property disputes in India

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Property disputes can be the most protracted and expensive legal battles in India. Yet, people can avoid such lengthy and costly legal battles through good legal counsel and advice. Buying or selling property is no joke and requires a good amount of legal care and planning. The ever-expanding world of legal loopholes, sluggish bureaucracy, a plethora of regulations, etc. can turn uncareful property dealings into a nightmare.

Property disputes in India can be of many types like- land title disputes, inheritance-related disputes, disputes between developers and buyers, tenant disputes, disputes w.r.t. occupancy certificates, etc. However, a good lawyer can help you easily understand the legal processes, prepare the necessary papers, and, most importantly, help you avoid mistakes that others could exploit. In this article, we will explore, we will explore the top 5 ways through which people can avoid and learn how to resolve property disputes in India.

What is a property?

In simple layman’s terms, a property is a physical or virtual entity owned by an individual or jointly by a group of individuals, or by a legal entity. Further, depending on the nature of the property, the owner of the property has the right to consume, rent, sell, transfer, mortgage, and exchange his property. Some of the traditional ownership rights include.

1. Right of the owner to take any benefit from the property.

2. Right to exclude others from the property. 

3. Right to transfer or sell the property.

4. Right if control over the use of a property.

Further, we can see that Section 2(c) of the Benami Transactions (Prohibition) Act, 1988 describes the property as: “Property” which means property of any kind, whether movable or immovable, tangible or intangible, and includes any right or interest in such property.” and Section 2 (11) of the Sale of Good Act, 1930 describes the property as: “Property” means the general property in goods and not merely a special property. Property can be of many types like- movable, immovable, tangible, intangible, intellectual property, etc.; in this article, we will talk about immovable property, i.e., land, buildings, shops, flats, etc.

Also Read: Facing a Property Related Dispute? Know How to Solve it.

Top 5 ways to avoid property disputes-

Here are the top picked ways to avoid property disputes in India:

● Verify the documents before making a purchase

Many legal disputes and unending trips to courts can be avoided if people thoroughly verify the property documents beforehand, through the help of a good lawyer. Whether you are buying property from developers, inherited property, or even auctioned property, first be sure of the ownership of the property, mutation of the property in the name of the seller, RERA registration, and approvals from municipal departments and other departments. In the absence of verifiable digital records, forging false property papers is possible, and many scams and frauds occur every year through the use of false documents. A good legal counsel can help you be sure of the property’s title and ensure the property documents are genuine.

● Regular inspection of the bought property

n an ideal scenario, buyers should reside at their property, but many buyers buy property for investment purposes and usually don’t reside at the purchased property. Still, it’s best advisable to regularly visit the property, install security cameras, fence the plot or make arrangements for a security guard at the property to avoid any problems. Similarly, people who leased out their property should also visit their property to ensure that things are well maintained. Buyers who buy under-construction property from developers should also regularly visit their property to ensure that the construction is as per the regulations and approved plan. If the buyers spot any irregularities or find the construction of substandard quality, they should immediately bring it to the developer’s notice.

Also Read: Thinking of Gifting a Property? Know the Legal Route

● Make clear rental/lease agreements.

It’s pretty common to rent out/lease property; similarly, disputes between tenants and landlords are also very common. The best way to avoid such disputes with tenants is to make the rental/lease agreements with clear-cut conditions and expectations.

It’s best to take the services of a good lawyer while framing the rental/lease agreements to avoid any shortcomings and loopholes in documents that others can exploit. In the rental agreement, you should clearly mention the security deposit, the occupant’s name, property rent, conditions to vacate the property, penalty for delay in rent payment, stamp duty on the rent agreement, maintenance charges, responsibilities of the tenant, etc. Further, property owners should get their rent/lease duly registered as the court’s honor only a duly registered rent/lease agreement
in case of a dispute.

● Get the property mutated soon after the purchase.

Mutation or Dakhil Kharij is an essential step in the property-purchase process. A mutation is a process in which the property’s buyer gets his name registered in property ownership records of the municipal body to show that the property has been transferred from the seller to the buyer, and now the property tax payment liability is on the buyer of the property. To make the mutation process quick and hassle-free, it’s advisable to use the services of a lawyer. The documents required for mutation are- sale deed, mutation application, registration deed, an affidavit on stamp paper of requisite value, receipt of current property tax payment, etc. Moreover, the mutation is essential if you want to sell off the property in the future. The mutation is necessary for all types of immovable assets– land, flats, individual home, shop, etc. Further, buyers should also ensure the seller has paid the property tax dues to avoid any disputes
regarding property tax liability.

● Prenuptial agreements

Property disputes can also occur between couples getting divorced or estranged; in such a case, it’s advisable to enter into a prenuptial agreement before the marriage gets solemnized to make things clear on property matters and avoid disputes. Prenuptial agreements are very helpful in solving disputes regarding jointly held assets and help prevent problems related to asset distribution in case of a divorce. Although prenuptial agreements are not legally tenable in India, they still carry a persuasive value if the divorce turns into a court battle and can prevent couples from taking advantage of each other. 

These were the top 5 tips to help people avoid property disputes. If you want to hire a property lawyer in Chandigarh to resolve your disputes related to land, property, or real estate Lex solutions is the right place for you.