Property Title Disputes in India: Causes, Legal Remedies and How to Resolve Them
Introduction
- Property has always held immense value in India—not just in monetary terms, but also culturally and emotionally. For many, it represents legacy, financial security, and familial identity. However, the ownership of property is not always clear. Disputes over property titles are increasingly common, especially with the rise in urbanization, inheritance complexities, and real estate investments.
- Imagine a scenario where two individuals claim the same piece of land. One has a registered sale deed, while the other has a will and claims inheritance. Which document holds greater legal weight? Who is the rightful owner?
- Property title disputes are legally and emotionally exhausting. They can last for years, drain financial resources, and disrupt family peace. But with proper awareness, legal action, and preventive measures, these conflicts can be avoided or resolved effectively.
Understand a Title Dispute
- A property title is the legal right to own, use, and transfer property. It is the document that proves ownership and serves as the foundation for any real estate transaction. A title dispute occurs when two or more parties claim ownership rights over the same property.
- These conflicts arise when there is confusion, ambiguity, or fraud concerning the title of the property.
- Competing claims from buyers or heirs
- Disagreements over boundaries
- Questions about the validity of documents like wills, gift deeds, or sale deeds
- The title makes it easier to establish who the rightful owner is. The undermentioned laws outline the legal framework for property transfers, inheritance, and remedies in case of dispute. Title disputes in India are governed by
- The Transfer of Property Act, 1882,
- The Indian Succession Act, 1925,
- The Registration Act, 1908.
- The Specific Relief Act, 1963
- The Civil Procedure Code (CPC), 1908
- The Limitation Act, 1963 (in cases involving adverse possession), provides for a timeline.
Common Causes of Property Title Disputes in India
- Errors or Omissions in Documentation: One of the leading causes is incomplete or improper paperwork. Like in the case of a sale deed which is not registered under section 17 of the Indian Registration Act, 1908, it can be challenged. The title can be questioned if there are unclear boundaries, missing signatures, and forged documents. In the case of Suraj Lamp & Industries v. State of Haryana (2011), the Supreme Court emphasized the importance of registration of the sale deed. Registration notifies the public of the transaction.
- Inheritance or Succession Conflicts: Due to the diverse personal laws in India, which are based on Hindu, Muslim, Christian, and other faiths, the rules relating to inheritance and property are often misunderstood. Legal Heirs can initiate litigation concerning the share. If any document that will be a help in deciding everything is not registered or unclear, these disputes acquire another dimension. Even if a person lives in a property for decades, without legal transfer of ownership through sale or gift deeds, probated or unprobated wills, or legal heirship, the title may still be disputable. Some common scenarios include disputes over shares of self-acquired property of parents versus ancestral property.
- Fraud or Misrepresentation: In the present scenario, one of the primary reasons is fraudulent sales. Land Mafia and people with criminal intent may misrepresent themselves as the owners of the property, which they offer for sale with forged documents. In some instances, the seller may conceal that a property is mortgaged with a bank or a financial institution, encumbered, or is under an obligation. If the buyer does not verify the title, he faces repercussions such as economic loss, prolonged litigation, and other legal consequences.
- Encumbrances and Liens: An encumbrance is a legal claim on the property, like a mortgage, tax lien, or easement. If these claims are not cleared before selling, the buyer is made to face the problem or carry the issue with them.
- Boundary Disputes: Unclear or overlapping boundaries can cause conflicts. The title holder can claim overlapping portions over a specific area, and it may lead to a title dispute. Disputes often arise from several factors, including vague or outdated land survey maps, Inconsistent plot measurements, and overlapping claims from neighboring property owners. Even minor errors in boundary demarcation can lead to significant litigation, especially in urban areas where land is scarce and valuable.
- Government Claims: At times, the dispute arises when the government claims that the land belongs to the state and was illegally acquired. It is often done under the Land Acquisition Act, 2013.
- Tenancy and Adverse Possession: According to section 25 and Article 65 of the Limitation Act, 1963, a person who occupies land openly and continuously for 12 years (30 years for government land) without challenge can claim ownership through adverse possession.
- Government Acquisition or Claims: The government may claim land ownership under laws such as the Land Acquisition Act, 2013, the Urban Land (Ceiling and Regulation) Act, 1976, the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act, 2013, etc. If a property was acquired illegally, or if acquisition notices were ignored, the government can challenge the current title—especially in redevelopment zones, highways, or SEZs.
How are Title Disputes Resolved in India?
- Negotiation and Mediation: Many disputes are settled out of court through negotiation or mediation. Families might agree to divide property, or buyers and sellers may settle for compensation. Mediation, being a mechanism for resolving disputes, is made compulsory under section 89, Code of Civil Procedure, 1908. It turns into a simpler and faster mechanism to resolve disputes.
- Civil Litigation: If the ADR mechanism fails, parties can opt to file a civil suit. Since it follows a proper procedure and everything is well documented, the process is considered sound. Key legal remedies include
- Declaration of Title: In case of a title dispute, there are several procedures for approaching the court. Under order VII of the Civil Procedure Code 1908 and section 34 of the Specific Relief Act, 1963, parties can seek a judicial declaration of their titles.
- Injunction: Four types of Injunctions are provided under the CPC, 1908; they are Perpetual Injunction, Mandatory Injunction, Prohibitory Injunction, and Temporary Injunction. With the suit instituted, a Temporary Injunction (TI) can be filed, and the court may grant a temporary injunction to prevent interference with property during litigation.
- Specific Performance: A suit for specific performance of an agreement or a contract can be filed before a competent civil court to enforce a sale or other agreement if one party denies performing their part. Although not always directly related to the title, it often arises in sale agreement disputes.
Preventing Title Disputes
- Title Search and Due Diligence: To avoid any type of dispute, it becomes essential that thorough care is taken beforehand. Checking property records, encumbrance certificates, and revenue documents should be the first step. It can become a simple task if a lawyer is engaged in the process. If the documentation is clear, disputes can be easily avoided. Title Search Reports and Due Diligence of the chain of documents, preferably for the last 30 years, may help in identifying the chain of titles/ownerships.
Encumbrance Certificate (EC): An Encumbrance Certificate is issued by the Sub-Registrar's Office and lists all registered transactions related to a property. It helps determine if the property has a mortgage, if it is under legal litigation, if it was previously sold or gifted, etc. Always request an EC for at least 30 years, and ensure it shows a clear history of ownership and no registered claims.
Property Tax and Mutation Records: Always cross-check the property's mutation and tax payment records with the local municipal authority. Mutation reflects the change of ownership in government records, and tax receipts ensure that the previous owner has cleared all dues. If a mutation has not been done after inheritance or sale, the buyer could face future legal hurdles or rejection of ownership.
- Register Documents: A property transaction must be registered under the Indian Registration Act, 1908, or the State Registration Act, as applicable. It certainly helps in securing the rights of the purchaser of the property. It helps avoid bogus and vague transactions and also prevents fraud.
- Draft Clear Agreements: Sale agreements or wills should be unambiguous, with proper attestation and registration where required.
- Seek Legal Advice: For any property transaction, individuals should consult a lawyer to ensure a smooth process.
Conclusion
Various reasons cause title disputes, but they can be easily avoided if some care and caution are taken. Due Diligence is required to navigate title disputes. Registration plays a vital role in preventing and handling these types of disputes efficiently. If we remain informed about our duties and rights, we can easily prevent ourselves from getting into any such dispute. For legal assistance, contact us.
