For most people, buying a home isn’t just a transaction. It’s a lifetime’s worth of savings poured into a single decision. And yet, time and again, property buyers step into deals blindfolded, trusting paperwork they don’t read and sellers they don’t vet. The result? Defective property titles, and the chaos that follows.
At the heart of every legitimate real estate transaction is one document: the title deed. It’s not just paperwork; it’s proof. Proof that the seller has the legal right to transfer ownership. Proof that no one else can come knocking with a counter-claim. And when that proof is weak or flawed, the consequences are unforgiving.
What Makes a Bad Title?
Several things, and none of them obvious to the untrained eye.
1. Liens on the Property
A lien is the lender’s grip on a home when a loan is unpaid. It’s legally enforceable and can override a buyer’s claim if not cleared before sale. And not all liens are easy to spot. Some are private agreements registered quietly, others imposed by court orders during ongoing disputes.
2. Court Cases in Progress
A property tangled in litigation, whether over inheritance, fraudulent Power of Attorney transactions, or unresolved family divisions, is a minefield. Even if there's no visible lien, the court's jurisdiction takes precedence, often leaving buyers in limbo.
3. Encumbrances and Mortgages
Encumbrances differ slightly from liens. They’re usually tied to mortgage-backed loans. When a third party, like a lender, has legal rights over a home, the buyer cannot safely claim ownership unless that interest is cleared. Buyers should always demand an encumbrance certificate from the local sub-registrar’s office.
4. Multiple Sales of the Same Property
There are documented cases where one seller transferred the same flat to multiple buyers. Payment was collected from all. Some of it is used to close loans. Others disappeared. These fraudulent overlaps lead to years-long courtroom battles and immense financial stress.
5. Government-Notified Properties
These are plots or homes earmarked by the state for infrastructure projects. Even if a seller produces all “right” documents, a notification in the official gazette can override ownership. Such titles are often irreversibly defective, and buyers lose both property and money.
6. Illegal Land Use Conversion
A rising number of housing projects are springing up on lands originally designated as agricultural. Converting such land for residential use requires strict procedures and government clearance. Skipping these steps results in titles that, while seemingly legitimate, can be overturned.
7. Rediscovered Wills
A legitimate transfer from government or via succession can be undone if an older Will resurfaces. If that Will has legal standing, ownership changes. Buyers who believed they were purchasing clean risk having the property pulled out from under them.
8. Forged Documents
Other con artists make sale deeds just short of perfect, including false identification and impersonation. It doesn't even matter if the deal is recorded – if forgery is discovered, it will erase the sale. That leaves the buyer not just without property, but under investigation.
9. Survey Disputes and Encroachments
In high-density areas, land demarcations blur. Survey mismatches, encroachments on government or neighbour land all complicate the true size and scope of what’s being sold. Titles affected by such ambiguity are vulnerable to third-party claims.
10. Conditional Ownership
Some developments offer leasehold land. This isn’t outright wrong, but you, the buyer, don’t get all rights. Re-sale, mortgage, or re-construction may be limited. This “conditional title” translates to limited ownership, and is frequently misunderstood and not considered during purchase.
11. Breaks in Title Chain
There are some instances, however, where it’s not induced fraud or litigation just sloppy paperwork. A misspelt name. A missing signature. A skipped inheritance transfer. These errors break the chain of title, and that’s enough for a court to stall or void the sale.
What can homebuyers do?
Prevention is still cheaper than recovery. Here's what it is recommended:
Scrutinise the Sale and Title Deeds: Ensure registration is proper, signatures are intact, and names match exactly across all documents.
Establish a 30-Year Ownership Trail: Demand and review property records tracing back three decades. Breaks in the chain should be red flags.
Avail an encumbrance certificate: It is to ensure that the land you are planning to buy has no liens, mortgage or any other legal liabilities.
Check if Registered Under RERA: According to the Real Estate Regulatory Authority (RERA), it is mandatory for new or under construction properties to register.
Compare Online Records to Official Maps: Compare recording maps and computer land records for size, usage, and survey numbers.
Look at Property Mutation: Verify the seller's name against municipal records to confirm the seller as the rightful owner.
Demand All NOCs: Objections Note Objections NOC are required for utilities, environment, and urban development reservations. Their absence is a dealbreaker.
