These are the 7 Legal Red Flags in a Property Deal You Should Never Ignore
Buying property in India can be a dream — or a legal nightmare. From fraudulent sellers to unclear land titles, overlooking small red flags today can cost you lakhs (or your entire property) tomorrow. This guide highlights 7 legal red flags that should instantly raise your guard before you buy.
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1. No Clear Title or Ownership History
If the seller can’t produce original title documents or registration proof, walk away. Title clearance is the foundation of a legal purchase. Ask for a legal title report and encumbrance certificate from the sub-registrar.
See: Legal Steps to Check Property Title Before Buying
2. Unregistered or Verbal Agreements
Any sale agreement that isn’t on paper and registered under the Registration Act is not enforceable in court. Verbal promises, family arrangements, or WhatsApp texts don’t count.
Read: Can Verbal Property Agreements Be Enforced in India?
3. Ongoing or Past Litigation on the Property
If the property is involved in a legal dispute (partition, fraud, or ownership challenge), your deal may get frozen in court. Always check the court records and public notices.
Related: What Happens When Two Siblings Claim the Same Inherited Property?
4. Builder Has a History of Delays or Complaints
Search RERA records and online forums. If the builder is known for possession delays, non-refunds, or illegal construction, you may be the next victim.
More: Builder Delay in Possession? Here’s What Indian Law Says
5. No Occupancy Certificate or Completion Certificate
No matter how attractive the deal, never buy a flat without an Occupancy Certificate (OC). It's proof the construction meets legal standards and is fit for living.
Buying a flat? First read: Why Buying a Flat in India Is Riskier Than You Think
6. Property Sold Only Through Power of Attorney
If the sale is happening through a POA and not by the owner directly, check the POA’s validity, notarization, and whether it's registered. Many fake or expired POAs are used to deceive buyers.
More: How to Use a Power of Attorney Safely in Property Transactions
7. Deal Priced Suspiciously Low
If a property deal is priced far below market value, there's usually a catch — disputed title, illegal structure, or hidden litigation. Always question why it’s cheap.
Also read: The “Fake Seller” Scam: How It Works and How to Avoid It
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