1. Title Defects and Ownership Disputes

Title defects can create ownership challenges after purchase. Some common issues include multiple claims of ownership, unpaid dues, and fraudulent transfers.

How to Avoid Title Defects?

• Conduct a Title Search with legal experts.
• Obtain a Title Clearance Certificate.
• Consider purchasing Title Insurance.

2. Fraudulent Documentation

Fake property documents, missing approvals, and incorrect land measurements can lead to fraud.

How to Ensure Proper Documentation?

• Verify Original Property Deeds.
• Ensure documents are legally notarized and registered.
• Hire a real estate lawyer for document review.

3. Zoning and Land Use Restrictions

Government zoning laws regulate property use, and non-compliance may result in fines or demolitions.

How to Check Zoning Laws?

• Obtain a Zoning Clearance Certificate.
• Verify Approved Building Plans.

4. Pending Litigation and Disputes

Properties under legal disputes can lead to prolonged court cases and financial losses.

How to Check for Legal Disputes?

• Conduct a Litigation Search.
• Check Court Records for disputes.

5. RERA Non-Compliance

For under-construction properties, non-compliance with RERA regulations can cause legal and financial trouble.

How to Avoid RERA Risks?

• Verify if the builder is RERA-registered.
• Check Project Details on RERA Portal.

6. Financial Liabilities and Unpaid Dues

Unpaid property taxes, utility bills, or home loans can become liabilities for the buyer.

How to Check for Unpaid Dues?

• Request a No Objection Certificate (NOC).
• Verify outstanding taxes and utility bills.

7. Power of Attorney (POA) Fraud

POA misuse is a common fraud in real estate transactions.

How to Avoid POA Fraud?

• Verify authenticity of POA documents.
• Ensure POA is legally registered.

8. Government Acquisitions

Authorities may acquire land for infrastructure projects, affecting ownership.

How to Check Government Restrictions?

• Check if the property is in a government-acquired zone.
• Verify environmental protection laws.

9. Delayed Possession and Builder Scams

Many buyers face delays in property possession, leading to legal troubles.

How to Avoid Possession Scams?

• Ensure the builder has a credible track record.
• Include penalty clauses for delays in agreements.

Conclusion

Understanding these legal risks can help you make informed property transactions. Always conduct due diligence, verify legal documents, and seek professional legal advice before finalizing any deal.