Property In India: Elements And Disputes<!- author name and link for post -->
Property disputes are a common occurrence in India, mostly in states like Chennai, Maharastra, Delhi, Bengaluru etc. where property rights have increased and are on a further rise. Similarly, the wars fought over wealth has also increased for decades from low-level household income groups to the elite. Such disputes are time consuming and result in litigation and each case has its intensity.
Most types of property disputes may appear in the form of, disputes occurring from unhappy beneficiaries who may have received a lesser share in the property. Disputes may also arise in the event of property grabbed by using illegal means such as forceful possessions, complaints and cases, forgery etc.
The solution to such a problem is to take the matter to court of law. On the contrary, property disputes in courts extend for even decades from the lower court to the highest one. However, coming to an amicable settlement will resolve such disputes to an extent.
5 Types Of Property Disputes
Here are some common facets identified in property disputes :
Disputes In Title Of Immovable Property
The title of a property is a symbolic representation of the ownership right to a property. A person having a good title to a property, refers to the fact that the person is entitled to enjoy the rights of interests in that property. A good title must always be supported by authentic documents which protects your property against any interruption by another part. A dispute in title of a property may also arise when a property that is acquired by gift or under a will was not found to be lawful.
Sometimes a property is purchased without researching on the following such as:
- Without verifying the location of the property.
- Without finding out the actual person in the possession.
- Without checking the latest development or regional plan.
- When a property being subject to a road setback, school, welfare centre reservation or reservation of garden or playground, and is not represented to the buyer and the buyer ends up without inquiring about the same and pays advance money and later finds out the fact of a property being restricted in its use.
Disputes In Delay Of Handing-Over Flats
Any delay relating to the delivery of possession of flats by builders is considered a vague today. Currently, more than 80% of the real estate development, may it be residential or commercial are being delayed due to delays in following authoritative compliance’s such as, Intimation of disapproval, construction certificate, occupation certificate, and no objections certificates of sewerage, water, environment, fire, tree, police etc.
A fraudulent conduct performed by the builder to raise funds, enables him to sell a single unit or a flat to many buyers in order to raise funds at a construction stage. Such an act leads to a dispute. Moreover, delays may also occur because of lack of sufficient funds.
Disputes Due To Timely Payments/ Non-Payment of Rent To Members Of Housing Society
One common dispute in the real estate sector is the non-payment or delay in payment of rent to the members of housing society. When a builder undertakes to develop a housing society, he is under an obligation to offer a temporary accommodation of the members till the new building is constructed.
In the beginning of construction, everything moves with ease, but, at times, the construction of the building will come to a stop due to financial reasons or delays in compliances, disputes with a title etc. Members of such housing societies are left with little choice, that is, to request the builder from time to time to make the payment or else approach consumer court.
Disputes Relating To Inherited Property
Basically an Inherited property refers to the property received by a person through a will, as an heir or otherwise. One has to be very careful in buying inherited property inherited from his or her ancestors or from other persons. There are problems buying or even selling such property as the process is cumbersome and involves fraudulence.
Disputes generally occur when a purchaser buys such inherited property without the knowledge of such property being an inherited property or without the knowledge that such property is being subject to the conditions of will, probate, letters of administration or a succession certificate. When a person dies and has made a will for distribution of his assets, the property is distributed as per wishes set out in the will.
Wills may be challenged as to its authenticity on the grounds that the maker of the will was not a fit person when he made the will or the will is not the last and final will or the property has been distributed in contravention of the wishes set out in the will or the will is fallacious.
Disputes Between Buyers Builders/Estate Agents
Currently, the fraud played by buyers in cities have become a common phenomenon. The reason behind this is because of the fraudulence played by many builders in the market, with the help of illegal estate agents. In many cases, documents of the property are misinterpreted or providing documents which do not pertain to the property.
Disputes between buyers and builders lead to criminal complaints, civil disputes and sometimes physical threat as well. Such disputes have been found in the consumer courts. Fraudulence is not just restricted to money, but it extends to other breaches which the builder or the estate agents commit in contrast to the promises they offer to the buyer.
5 Elements Of Property Investment In India
Most people in India are of the assumption that any property makes a good investment, but what most do not understand is the risk involved in it. Property investing is a complex form of financial activity that requires taking large amounts of debt and accompanies a risk factor along its journey of being purchased. You would want to learn ways as to avoid these risks with thorough research, before getting into a deal. A successful investor knows that property investments are acquired with the help of an investment strategy that is built carefully with proper research and planning.
Well, here are 5 elements of property investment that you need to keep in mind, in order to make it all the way up the property ladder:
Financial Capacity And Risk Profile
Deciding on an investment strategy based on your long-term investment goals is critical. In order to do so you need to understand your financial position and capacity to purchase an investment property as well as the amount of risk you can handle as an investor.
Taking the help of a qualified financial investment advisor is recommended. Sometimes, seeking advice in a cost effective manner may turn out to be expensive in the long run. Spending ample time on research is the key to a more complex, trustworthy, and wise investment on a property of your choice.
Property Investment Team
It takes a lot of combined knowledge to create a successful property investment strategy and portfolio. Finding investors with a personal track record in property investment must be treated with utmost importance. Investment advisers can be accountants, financial advisers, mortgage brokers etc.
You need to beware of people who are not aware of your interests. Property promoters and armchair experts are largely unaware of the market fundamentals, which will thereby impact your investment in a complex manner.
Preferred Property Market
Once you identify your investment strategy, you must have a clear idea as to what type of location will be perfect to purchase your dream home. While, there are many properties on the market at any given, they may not be the right investment for your property in terms location. You need to select certain locations based on location, future capital, and demographic setup. Never invest on a place based on whether or not you would want to live there.
Make Your Best Property Investment
Once you have figured out the location, it’s time to think about the type of property that will suit your investment strategy. Always remember that no two lanes or streets are alike. Properties within close connection to amenities like hospitals, lakes, schools, metro stations etc. will have greater demand and therefore dominate when it comes to selling in in future. Take for instance, in new vicinity’s there are two factors that you need to look at when investing a whole sum of money namely walkability factor and ease of access to basics.
How Much Is The Property Worth
Once you find the right requirement for your property, you also need to make sure you do not pay too much for it. The best option is to engage an investment expert in the field who has sufficient knowledge on the locality and offer advise of what they believe the property is actually worth.
Successful property investors recognize that once they have acquired the land, the research over it doesn’t end, instead a critical evaluation of their performance on an annual basis and ensuring there is no future risks. This includes facets like, how to structure your investment ownership, and manage your investment related debt.