How Safe Is It To Buy Unregistered Resale Property In India?
How Safe Is It To Buy Unregistered Resale Property In India?
Everyone dreams of purchasing their dream home, but buying a home is a challenging task. It requires solid financial planning and a considerable budget. However, only some have a enough budget to buy a good home. In search of good residential properties at affordable prices, they move towards resale property in India. It is not an issue to purchase a resale property, but the issue comes when we talk about purchasing unregistered resale property in India.
Such properties include too many encumbrances and liabilities that everyone should know or get cleared before buying; otherwise they will lose all their hard-earned money. Today, we will educate you about unregistered resale property in India and how safe it is to buy them?
Difference Between Registered and Unregistered properties
Everyone needs to know the difference between registered and unregistered properties so you can save yourself from any future legal complications and ownership disputes.
Registered Property
Registered properties include updated property details in the government record with updated ownership details. They are registered in the local sub registrar's office with two witnesses, as well as the buyer and seller. Registered property is entirely safe as it is protected by law and has been registered in the government records. So, no one can claim ownership of the property other than the actual owner. The registered property also involves stamp duty and registration charges as prescribed. So, it is safe to buy a registered resale property in India.
Unregistered Properties
Unregistered properties have no government records and can have legal complications in the future. Such properties have no official documents to verify the actual owner in the government records, which is why there could be fake claims against such properties. Unregistered properties may have undisclosed liabilities and have a more precise history of previous owners that can create disputes in the future.
However, unregistered resale property in India, such as flats, is usually safer to buy because the developer has all the records about the property, and no one can claim it. Even if someone file claim against the property, the builder will reject it as there will be discrepancies in the ownership details. However, an unregistered independent home or any property whose builder is unknown. If someone claims against your property, you can have various legal implications.
Is It Safe To Buy Unregistered Resale Property In India?
Various concerns occur if you purchase an unregistered resale property in India.
Discrepancies In Ownership
Without registration, there is no way to prove your ownership of property. It may lead you to complex legal proceedings, and you will face many problems in the future. You will have to go through various legal challenges to prove your ownership.
Problem to secure financial help
You will need help getting a loan on unregistered resale property in india because financial institutions need proper documentation to provide you with a loan on your property.
Low Resale Potential
Everyone hesitates to purchase unregistered resale property in India because it may involve legal proceedings, and no one wants to get into such trouble.
Tax implications
Owning an unregistered property could increase tax liabilities and the chances of legal consequences for non-compliance with tax laws.
Difficulty in documentation
An unregistered property lacks essential documents such as sale deeds, title certificates, and property tax receipts. This lack of documentation complicates ownership and hinders the registration process.
What should you do before purchasing an unregistered resale property?
Before purchasing an unregistered resale property in India, always make an "agreement to sell" document with a notary of at least 100 rupees stamp paper and verify that the owner has not made any other agreement to sell before this with someone else. Suppose anyone legally challenges you in court. In that case, you will have the agreement to sell to show that this property belongs to you, but always remember if there are two persons with an agreement to sale documents.
The first one will be considered the actual owner, so always verify if there is an additional agreement to sell on an unregistered resale property. If you are the only person with an ATS, you will be considered the owner in case of fraud.
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