How to prevent the sale of disputed property in India?

In India, there are numerous cases related to property disputes pending to be settled in courts. Property disputes arise due to unlawful possession or disagreement of co-owners. This results in legal proceedings to rectify the sale or ownership of a property.

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Dealing with property disputes has an effect on finances besides mental and physical health. Legally speaking, the sale of a property can take place only when all owners agree to the terms of the sale.

The sale of disputed properties is quite a complex legal process. The sale of disputed property in India is governed by various laws and regulations, including the Indian Contract Act, Transfer of Property Act, Land Acquisition Act, Indian Registration Act, and certain state-specific laws.

What is a disputed property?

A disputed property involves legal complications, such as liens, encumbrances or disputes related to its ownership or title. Specialised legal knowledge, due diligence, and compliance with various legal and regulatory requirements are a must for the sale of a disputed property.

Can a disputed property be sold without all owners?

Legal disputes and complications may arise when the co-owner of a property wants to sell their share without the consent of the other owners. Typically, all co-owners’ consent is required to sell the property. One may have to face legal challenges and litigations if he/she tries to sell the property without resolving the dispute. Moreover, the sale of a disputed property depends on the legal status of the property and applicable state-specific laws.

According to Section-52 of the Transfer of Property Act, the doctrine of Lis Pendens is applicable. As per this, during the pendency of a suit or legal proceedings related to a property, the ownership cannot be transferred or sold without the court’s permission. If one tries to sell a disputed property under such a scenario, it will be considered legally invalid, resulting in contempt of court proceedings and other legal consequences.

Due diligence before selling a disputed property

Before one plans to sell a disputed property, one should perform due diligence to find out any legal or technical issues that may affect the sale and address them. It entails verification of the ownership and title of the property, physical survey and inspection of the property, review of any liens, encumbrances or disputes related to the property and seeking required approvals from relevant authorities.

Verification of property ownership and title of a property is one of the crucial steps. A title search is done by obtaining legal documents, such as sale deeds, lease agreements, revenue records, etc., that establish ownership and title. It is also done to identify any legal or technical issues that could impact the sale of the property.

Due diligence is necessary to prevent any legal or financial liabilities arising from the sale of a disputed property in India.

What is the legal remedy if a disputed property is sold without your consent?

The following are some legal remedies available if a disputed property is sold or sold without an individual’s knowledge or consent.

Injunction: A person can file a suit for an injunction in the relevant civil court requesting to restrain the sale of the property until the dispute is settled. An injunction is a court order asking a party to cease doing specific actions, such as selling the property, until the court resolves the matter.
Lis pendens: This provision under Section-52 of the Transfer of Property Act is applicable when there is pending litigation over a property. If a buyer comes to know that the property is being sold while legal proceedings are taking place, they can notify the court about the pending litigation and request suitable action to prevent the sale.

Laws related to the sale of disputed property without owners

The sale of a disputed property without the consent of all owners is not permitted as per Indian laws. According to the Transfer of Property Act, 1882, all co-owners must agree to sell a property to ensure the legal validity of the transaction. It will be considered illegal in case one or more co-owners try to sell the property without the consent of the other owners. Attempting to sell a disputed property without the consent of all owners, while legal proceedings are ongoing can result in serious legal consequences.

How can you prevent the sale of disputed property without your knowledge?

Review property’s status: One should stay aware of any legal proceedings or disputes concerning the property and regularly monitor its status. Keeping track of check communications from government authorities, courts or other parties related to the property is a must.
Maintain relevant documents: Properly maintaining property documents, including ownership deeds, titles, and agreements, is essential to prevent the sale of any disputed property without one’s consent.
Regular property checks: Frequent visits to the property by the owner to check for any unauthorised activity is crucial. If any suspicious behaviour or boundaries near the property are noticed, one can take immediate action.
Seek legal advice: One can approach a lawyer to understand the owners’ rights and legal options. One may seek professional advice on how to protect interests and initiate legal proceedings.

Housing.com News Viewpoint

Before selling a disputed property, it is necessary to check if there are joint owners and get their consent before going ahead with such transactions. If you own a property and want to prevent such a sale of disputed property without your knowledge, make sure you are aware of the rules and regulations. You may seek the support of a legal expert.

FAQs

Can we sell a property under dispute?

According to the doctrine of Lis Pendens under Section-52 of the Transfer of Property Act, during the pendency of a suit or legal proceedings related to a property, the ownership cannot be transferred or sold without the court’s permission.

What is the solution for a property dispute?

The various ways in which property disputes can be resolved include negotiation, mediation, arbitration, or litigation.

Can a disputed property be auctioned?

A disputed property cannot be auctioned while the case is still pending in a court.

Can a disputed property be transferred?

A disputed property cannot be transferred if a suit is pending in a court.

Is a property dispute a civil or criminal matter?

Property disputes are civil matters.

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Harini Balasubramanian

Harini is a content management professional with over 12 years of experience. She has contributed articles for various domains, including real estate, finance, health and travel insurance and e-governance. She has in-depth experience in writing well-researched articles on property trends, infrastructure, taxation, real estate projects and related topics. A Bachelor of Science with Honours in Physics, Harini prefers reading motivational books and keeping abreast of the latest developments in the real estate sector.