Property disputes are one of the most common categories of civil litigation in India, and they can tie up a buyer’s money and peace of mind for years. The good news is that the vast majority of these disputes are preventable with the right checks before you sign anything. Here’s a look at the most common types of property disputes and how to steer clear of them.
1. Title Disputes
This is the most frequent and most damaging type of dispute — a claim that the seller doesn’t actually have full, clear legal ownership of the property. This can arise from:
- Unclear or broken chain of ownership across multiple past transfers
- Property inherited without a clear, undisputed succession among heirs
- Ancestral property sold without consent from all legal co-owners
How to avoid it: Always get a lawyer to conduct a title search covering at least 13-30 years of ownership history, and verify the Encumbrance Certificate at the local sub-registrar’s office before making any payment.
2. Disputes Over Power of Attorney (POA) Sales
Some sellers authorize another person to sell property on their behalf through a Power of Attorney, particularly when the actual owner lives abroad or in another city. Disputes arise when the POA is outdated, improperly executed, or has been revoked without the buyer’s knowledge.
How to avoid it: Insist on directly verifying the POA document’s authenticity, confirm it hasn’t been revoked, and where possible, have direct communication or documentation confirming consent from the actual property owner — not just the POA holder.
3. Disputes Over Society/Builder Dues
Buyers sometimes discover after purchase that the previous owner left unpaid maintenance charges, parking fees, or other society dues attached to the unit — and the housing society holds the new owner responsible for clearing them before allowing possession or transfer of records.
How to avoid it: Always obtain a No Objection Certificate (NOC) from the society or builder confirming zero pending dues before finalizing the purchase, and get this in writing as part of the sale agreement.
4. Disputes Over Unauthorized Construction or Deviation
If a property has been constructed beyond its sanctioned building plan — an extra floor, an enclosed balcony, or expanded floor area not approved by the development authority — it can lead to demolition orders, regularization penalties, or complications during resale.
How to avoid it: Compare the physical property against the officially approved building plan from the relevant development authority (like NOIDA Authority, GNIDA, or MVDA) before purchase.
5. Disputes Over Delayed Possession
This is one of the most common disputes involving under-construction properties — buyers who paid on schedule but faced years of delay without recourse, particularly with builders who weren’t RERA-registered or who violated RERA-mandated timelines.
How to avoid it: Only book projects that are RERA-registered, and review the RERA portal for any prior delay complaints against the same builder before committing.
6. Disputes Over Boundary and Area Measurement
Especially common with independent plots and villas, disputes can arise when actual boundaries or built-up area don’t match what was represented at the time of sale — sometimes due to encroachment by neighboring properties, sometimes due to inaccurate original measurements.
How to avoid it: Get an independent surveyor to verify actual plot boundaries and area before finalizing payment, rather than relying solely on the seller’s or builder’s stated measurements.
7. Disputes Over Loan/Mortgage on the Property
If the seller had taken a loan against the property and hasn’t fully cleared it, the property may still be legally mortgaged to a bank — meaning the buyer could inherit a dispute with the lender even after paying the seller in full.
How to avoid it: Request a loan closure letter and Bank NOC confirming the mortgage has been released, and independently verify this with the bank rather than relying solely on the seller’s word.
A Pre-Purchase Legal Safety Checklist
- Title search covering ownership history conducted by a lawyer
- Encumbrance Certificate verified
- POA (if applicable) independently verified as valid and unrevoked
- Society/builder NOC confirming zero pending dues obtained
- Construction matches the officially approved building plan
- RERA registration verified for under-construction properties
- Boundary and area independently verified for plots/villas
- Loan closure/Bank NOC confirmed directly with the lender
Final Word
Almost every major property dispute traces back to a verification step that was skipped to save time or because “the seller seemed trustworthy.” A few extra weeks of legal due diligence upfront is a small price compared to years of litigation later. If you’d like guidance on the specific documentation needed for a property you’re evaluating, our team can help point you in the right direction.
