A recent warning by finance expert Sarthak Ahuja has highlighted a critical issue in India’s real estate sector: property registration alone does not make you the legal owner. Citing a recent Supreme Court verdict, Ahuja emphasized that without proper documentation and legal checks, buyers risk losing their investment—even if the property is registered in their name.
This alert is especially relevant in India, where property disputes make up over 70% of civil litigation. Despite spending lakhs or even crores on a property, many homebuyers ignore essential steps in verifying ownership. The belief that registration marks the end of the buying process is widespread—but flawed. The legal process of acquiring property in India is far more complex than a single transaction.
To avoid falling into what experts are calling a “property trap,” Ahuja recommends a checklist of critical documents and actions. These include a registered Will, No Objection Certificates (NOCs) from all legal heirs, a registered Sale Deed, and clear proof of payment through bank statements. In cases involving inheritance or resale, these documents are crucial in defending ownership rights in court.
Additionally, buyers must secure physical possession of the property, obtain the Mother Deed (which establishes the chain of ownership), and collect approvals and certifications such as Khata documents, building plans, and NOCs from housing societies, utility providers, and municipal bodies. Relying solely on a Power of Attorney or an Agreement to Sell is no longer enough under current Indian property law.
A Detailed Checklist for Indian Homebuyers & Heirs
If you are inheriting a property or buying one, here’s what you must get in order:
- Registered Will: Always ensure there is a written and registered Will. Courts view registered documents as more legally sound than unregistered ones.
- NOCs from Family Members: If inheriting, obtain written No Objection Certificates (NOCs) or “no-claims” letters from your siblings. If buying, ensure the seller’s family members (in inheritance cases) have given formal NOCs.
- Valid Ownership via Sale Deed: General Power of Attorney (GPA) or Agreement to Sell is not valid proof of ownership without an accompanying registered Sale Deed.
- Proof of Payment: Keep certified bank statements showing that actual payment was made for the property. These records serve as financial proof during disputes.
- Physical Possession: Having documents isn’t enough—you must take physical possession of the property in addition to legal possession to complete ownership.
- Multiple NOCs: Collect NOCs from the society/developer, house tax authorities, utility providers, and any banks that may have previously granted a loan on the property.
- Mother Deed & Title Chain: Possess the Mother Deed or chain of title showing previous sale deeds to prove a clear and traceable history of ownership.
Also, don’t forget essential supporting documents such as the seller’s ID proof, building plan approvals, encumbrance certificates, and the Khata certificate, which is crucial for municipal records and property taxation.
The Risk You Didn’t Anticipate
Skipping any of these legal steps could render your property registration null or disputed. Buyers may find themselves entangled in long court battles or unable to transfer or sell their property in the future. The assumption that a registered document guarantees full ownership is a dangerous one, especially in cases of inherited or resold properties.
Bottom Line: Documentation is Everything
According to Ahuja, “Property matters and family disputes make up the largest share of civil litigation in India. Given the rising value of properties, I would highly recommend that you stay informed and educate yourself on these things.”
For anyone planning to buy or inherit property in India, understanding title verification, conducting proper legal due diligence, and consulting a qualified property lawyer are absolutely essential. Registration is merely one piece of the ownership puzzle. True ownership requires a paper trail, physical control, and legal clarity.
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