Purchasing A Disputed Property

Property disputes are common in India, especially in the urban areas where property rights have significantly risen. Property disputes can impact your reputation and pose a threat to your investment. However, disputed properties are often sold at heavy discounts, which lures buyers to purchase costly properties at cost-effective rates. 

However, the main question arises, should one invest in a property surrounded by disputes at cheap rates? If you are looking for an answer to this question, here is a complete guide to help you decide. 

What are Disputed Properties?

Any property which involves a case of legal disagreement is a disputed property. If you see any vacant land, house, office space or any other form of real estate which has been lying vacant for a long time, it is probably a disputed property and has an ongoing case in court. 

Often, the court also locks the property and attaches a notice to its gate so that no trespassers can enter, even if it is vacant. There are generally multiple stakeholders involved in a disputed property, including homeowners, tenants and landlords, two or more members of the family, government organisations, and others. 

Types of Property Disputes

Several reasons may be responsible for a dispute on the property. Some of the common properties that are often witnessed include the following- 

• Breach of Contract

If any of the two parties involved in making a sale/purchase- the owner and the seller, breach the contract in any form, this might lead to a dispute. Whenever a property is sold or leased, a contract is established between the parties involved, which both must abide by. The common grounds of dispute include:

• Non-payment of the specified sum.
• Failing to fulfil their obligations.
• Any other such scenario. 

• Real Estate Fraud

Real Estate Fraud occurs when the seller hides vital information about the property or deceptively promotes it even if it has backend issues. It may include hiding the property’s condition, lying about its make, and selling property at fraudulent prices.  

• Boundary Disputes

Disputes regarding the boundary of a property often lead to neighbours getting into fights. The issue usually occurs with old properties, which did not have proper boundary marking or adequate records with the authorities. Sometimes, the property line, in reality, is not the same as the property line mentioned in the records. 

• Co-Owners or Family Disputes

It is the most common type of property dispute, which often involves co-owners or members of the same family, generally siblings. It occurs in joint ownership or when no particular “will” highlights the property division. 

• Property Performance Dispute

When the seller claims something about the property’s performance that it cannot fulfil, it might cause a property performance dispute. For example, while selling a commercial shop or a house in Delhi, the seller might claim that the place receives a 24×7 fresh water supply, but this turns out to be false after purchasing the property. 

Should You Buy a Cheap But Disputed Property?

Whatever the type of disputed property is, buying it only because it is cheap is a big no. Buyers should be sceptical about the low rates of a property because no one today wants to indulge in unprofitable investments. Purchasing a disputed property will waste money and time finding the real owner of court disputes. The consequential headache and hurdles compensate for the low price of such a property. Besides, here are some other reasons why staying away from disputed properties is better:

Additionally, one should never buy a disputed property for the reasons below.

• You can face legal sanctions later in life if the property is illegally constructed. Illegal construction can also exceed the allotted or sanctioned land area for construction. 

• One can also face legal repercussions from the higher authorities if the date of the stamp papers and the transfer data differ.

• All property disputes are infamous for their redundant legal procedures. All these litigations are time-consuming and are not worth it. Moreover, litigations require a lawyer, undoubtedly adding to the disputed property’s cheap cost.

• Buying disputed properties may also lead to excessive stress, which can strain your personal life. 

• If you cannot steer clear of the dispute, it may negatively affect your connections in terms of communication and trust.

Steps to Avoid Dealing with Disputed Property 

Here are some steps that everyone should follow to ensure no disputes are associated with the property before finalising the deal:

Summary

Nobody likes long, redundant litigation or disputes because they are not worth the time and energy. Disputed properties today have not only increased but have also made processes lengthy and costly. One has to pay hefty prices to lawyers at the cost of winning the property back. Therefore, it is best that disputed properties should be avoided at all costs, even if it is available at lucrative rates. Investors must buy properties after due consideration and diligence.

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