legal implications in case flat built on land has no clear title


In case a flat is booked say on a land having no clear title in respect of land owners, then what are the legal implications of getting same registered during completion or after getting possession of same from builder? The plan, layout, LUCC have been sanctioned by the authority.Also the land owners have mutations in their names and have LR Khatians and plot nos. Yet land is said to be having disputed title due to its total measure which is said to questionable as opined by XX empanelled lawyers. XX was approached for home loan. However, project is approved by another Public sector bank, YY, banks with clear title. I wish to know if legal complications can arise in case of getting flat registered in my name later or not? What are the risks involved? 

Answers (5)


73 votes

Firstly I think lots of complecation will be arise after registration as because owners have no clear title over the property. Is it not a joke who have no clear title he wil give you complete possession over the property.
Secondly any private bank does such type of approvals because it is their buseness policies. This such type of private banks have no intrest over the property, they are only intrested with their new customers. You wil have alligible to get loan when your service or business are in secured possition and not more.
Thirdly any local bodies like zila parisad, Gram Panchyet or corporation where the property is situated wil issued such sanctioned plane after receiving fees.


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339 votes

It is very simple law that what you are having you can not transfer more than that. In your question you have stated that the flat which was booked from your end is under encumbered title. Hence your title could not be better than the title holding by the owner of the land with whom you have entered into or intend to purchase the flat. If the title of the owner is defective that he could not transfer in your favour a better title than which he has with you which please note. Corporation has nothing to do with title title of the property. They are liable to see the mutation papers and assesses number of the premises and shall grant the sanction and construction may be completed by the land lord or its partner and after inspection of the site when it has become habitable corporation or municipality may grant completion certificate against the project upon receipt of the valuable fees and charges. Once again I have failed to understand that how you have come to the conclusion that the property in which you have booked a flat is not having marketable title and no PSU bank or any other private bank or financial institute shall have any right to amend the defect of the title and the same shall remain defective. If you have any knowledge of dispute in respect of title title than please share the same so that I shall be answer to the same.

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160 votes

In your case as far as my understanding goes as I am a partner in a legal firm situated at high court, the xx empanelled lawyers are acting on behalf of the bank which are reluctant to provide you loan that's why they are making your situation complex. I can assure you if tomorrow any legal issue arise out of the situation BLRO, KMC/municipality and all other authorities involve will face the consequences.How can you say the owner has no clear title? A public sector bank has approved it. It means the have done all the searching including court search. Also tell us who's enjoying the physical possession of the said flat? If it's owner or promoter then you have no reason to worry. However before buying it hire an advocate yourself and be satisfied about the title and then approach any other bank for loan instead of xx bank.contact lawrato for further details.

337 votes

When there is a dispute in title then the transfer of the Property has not been done properly. The question then arises is when will the title get cleared which if entangled in court can take years to resolve. So buying a flat on disputed land is a risk as in case of future sale of the said flat the property unless it has clear title will be very difficult to sell.

240 votes

The query has been too much generalised. Last 25 years searching report, land conversion status, all stake holders written consent, sanctioned building plan, Land taxes payment status and records related to statutory compliance on the part of the promoter/developer etc are to be put to due diligence process.
This is a must legal exercise to protect your financial and legal interest.
If you so desire, contact me through lawRato.

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