Land Litigation: Issues, Solutions, and Avoiding Disputed Properties

Purchasing a piece of land is often a major life decision, but it is also fraught with risks. One of the greatest risks you can encounter is land litigation—legal disputes over property ownership, boundaries, or usage. If you are not careful, you could end up purchasing disputed property, leading to financial loss and legal headaches. In this guide, we will walk you through common property disputes, how to avoid them, and what to do if you end up owning disputed land.

What is a disputed property?

A disputed property is any land or building involved in a legal dispute between two or more parties. These disputes can arise for a variety of reasons—ownership conflicts, inheritance claims, boundary issues, or improper documentation. Whether you are considering buying a piece of land or a house, it is crucial to understand the legal status of the property to avoid future litigation.

Types of property disputes

Several types of disputes can arise in relation to property, each requiring different solutions:

• Title disputes: Occurs when multiple parties claim ownership over the same property.

• Boundary disputes: Arise when neighbours disagree over where one property ends and another begins.

• Encroachment disputes: Occur when a property owner extends their property into someone else's land.

• Inheritance disputes: These arise when family members contest wills or claims over ancestral property.

• Builder fraud: Happens when builders sell the same property to multiple buyers or fail to deliver the property as promised.

• Mortgage-related disputes: Occur when there are disagreements between property owners and banks or financial institutions over home loans.

How to check if a property is disputed?

Before you make the commitment to purchase any property, it is critical to conduct thorough checks to ensure it is free of disputes:

• Title verification: Ensure that the title of the property is clean and undisputed. You can verify this through the local land records office or hire a lawyer to do a title search.

• Encumbrance certificate: This document confirms whether the property has any legal dues or is involved in any litigation. It can be obtained from the sub-registrar's office.

• Public notices: Sellers or real estate developers typically publish notices regarding property sales in newspapers. It is advisable to check for any objections raised by the public.

• Check with local authorities: Visit municipal or panchayat offices to ensure that the property is not subject to any land acquisition or disputes.

Consequences of purchasing a disputed property

Purchasing a disputed property can lead to a variety of negative consequences, including:

• Legal fees: You may end up paying hefty legal fees to fight the case in court.

• Financial loss: If the court decides against your favour, you could lose the entire property, along with your investment.

• Emotional stress: Property disputes can take years to resolve, leading to immense emotional and psychological stress.

• Inability to resell: A disputed property is nearly impossible to resell, as buyers will hesitate to take on the risk.

Legal recourse for disputed property

If you have already purchased a disputed property, there are several legal steps you can take to resolve the issue:

• File a suit for title clearance: If ownership is in dispute, you can file a lawsuit in civil court to clear the title and establish rightful ownership.

• Mediation: Property disputes can also be resolved through alternative dispute resolution methods like mediation or arbitration. This is a faster and less expensive method than going through the courts.

• Seek compensation: If you purchased a disputed property through builder fraud or false documentation, you can file a consumer complaint and seek compensation for damages.

Steps to take after purchasing a disputed property

If you have already purchased a property that turns out to be disputed, here are the steps you should follow:

• Hire a lawyer: Consult a legal expert who specialises in property law to guide you through the litigation process.

• Collect all documents: Gather all necessary property documents such as the sale deed, encumbrance certificate, title deed, etc.

• Notify the authorities: Inform local land authorities and file a formal complaint to establish your claim over the property.

• File for legal action: If mediation does not resolve the issue, consider filing a lawsuit for title clearance or compensation.

How to resolve property disputes in India

In India, property disputes can be resolved through various means, depending on the nature of the conflict:

• Civil court: Filing a civil suit is the most common legal recourse for property disputes. The court will review the case and deliver a verdict based on evidence.

• Alternative Dispute Resolution (ADR): As mentioned earlier, ADR methods like mediation and arbitration are often quicker and more cost-effective.

• Settlement deeds: In cases where both parties agree to resolve the dispute amicably, a settlement deed can be signed and registered, which legally settles the matter.

Important documents required to resolve property disputes

Document name	Purpose
Sale deed	Proof of ownership
Title deed	Establishes the rightful owner
Encumbrance certificate	Shows any liabilities or dues on the property
Mutation certificate	Records transfer of ownership in local records
Public notice	Announces the sale and invites objections
Court orders (if applicable)	Legal rulings relevant to the property dispute

Additional read: Documents required for home loan

How to avoid buying a disputed property

• Conduct due diligence: Always verify property documents before making a purchase.

• Hire a lawyer: A property lawyer can perform a thorough title check and ensure that all paperwork is in order.

• Check encumbrance: Obtain an encumbrance certificate to ensure that there are no legal dues or disputes tied to the property.

• Avoid oral agreements: Always ensure that property transactions are formalised through legal contracts.

Can you sell a disputed property?

Yes, you can sell a disputed property, but it is extremely difficult. Buyers tend to shy away from such properties due to the risks involved. You may have to settle for a much lower price or wait until the dispute is resolved. It is always best to resolve any litigation before trying to sell.

What to do if you purchased a disputed property?

If you have unintentionally purchased a disputed property, the first step is to seek legal advice. A lawyer will guide you on how to either resolve the dispute or recover your financial investment. You can also explore options like filing a lawsuit for title clearance, pursuing compensation from the seller, or even seeking a settlement with the opposing party.