One of my clients recently had a case which I am explaining below and if you are stuck in such similar situation, here is what to do.

Note: Due to attorney-client privilege, I cannot disclose complete case details or identify the actual parties involved. However, I am sharing the essential facts and legal approach so that if you find yourself in a similar situation, you can understand the available solutions and legal remedies.

Mr. X approached me when his home loan application faced rejection due to unclear property title. The situation involved a flat in City A where Mr. Y had purchased the property from a builder in 2018 on loan. Later, Mr. Y sold this flat to Mr. Z with only Rs. 5 lakhs payment plus stamp duty and registration, creating an agreement that remaining payment would be made within 45 days. However, Mr. Z never completed the payment, and the property remained in a disputed state. When Mr. X tried to purchase this property for his home loan, the bank raised concerns about the unclear title and pending financial obligations between the previous parties.

Advice in Such Cases

Consult with Lawyer: The very basic and important step to start is talk to Lawyer / advocate. You should not hesitate in paying his consultation fee i.e. might be in range of Rs. 10,000 to 50,000 depends case to case. He is helping you in this situation to come out. He is expert in the domain and can help you explain the procedure which you might have never explored. A good lawyer can get the issues resolved much faster than you think.

Conduct thorough title verification before proceeding with any property transaction. Demand all original documents and verify payment receipts between previous parties. Insist on a clear title certificate from a qualified advocate before making any financial commitments. Consider title insurance to protect against future disputes.

Applicable Sections of Law

Under BNS (Bharatiya Nyaya Sanhita), Section 316 covers cheating and dishonesty in property transactions. Section 318 addresses fraudulent execution of documents. BNSS (Bharatiya Nagarik Suraksha Sanhita) Section 154 governs the registration of complaints for property-related fraud. The Transfer of Property Act, 1882, Section 54 requires proper execution of sale deeds. Registration Act, 1908, Section 17 mandates compulsory registration of property transfers above specified value limits.

If You Are the Complainant

• File a complaint under BNS Section 316 for cheating if fraudulent misrepresentation occurred regarding property title
• Approach the Sub-Registrar’s office to verify the authenticity of all registration documents
• Collect evidence of all financial transactions, agreements, and communications between parties
• File a civil suit for specific performance if you have a valid agreement to purchase
• Seek an interim injunction to prevent further transfer of the disputed property

If You Are the Victim

• Immediately gather all documents proving your legitimate claim to the property including payment receipts
• File a police complaint under BNS Section 316 if there’s evidence of fraudulent sale
• Approach the civil court for declaration of rightful ownership and possession
• Seek compensation for financial losses incurred due to the disputed title
• Consider mediation or arbitration for faster resolution of the payment dispute

How the Police Behave in Such Cases

Police typically treat property title disputes as civil matters unless clear evidence of fraud exists. They may register an FIR under BNS Section 316 if cheating is established. Investigation focuses on document verification and examining the intent to defraud. Police often suggest civil remedies for payment disputes between parties. Expect delays as property cases require detailed documentation review and witness statements.

FAQs People Normally Have

Q: Can I get a home loan with disputed property title?
A: Banks will not approve loans for properties with unclear or disputed titles until resolution.

Q: What if the previous owner hasn’t paid the builder’s loan?
A: This creates a charge on the property, making the title defective for transfer.

Q: How to verify if a property sale is legitimate?
A: Check registration documents, verify payments, and ensure all previous loans are cleared.

Q: Can registration be done without full payment?
A: Yes, but this creates legal complications and affects the buyer’s rights.

What Evidence Is Required?

• Original sale deed between builder and first owner
• Registration documents of subsequent transfer
• Bank loan documents and NOC from lending institution
• Payment receipts and financial transaction records
• Written agreements regarding pending payments
• Property tax receipts and utility bills
• Chain of title documents establishing ownership history

How Long Will the Investigation Take?

Police investigation typically takes 3-6 months depending on document complexity and cooperation of parties. Civil court proceedings may extend 1-3 years for title disputes. Property verification by banks or legal experts usually takes 15-30 days. Resolution through mediation can be achieved within 2-4 months if parties are willing to negotiate.

Advocate Sudhir Rao, Supreme Court of India