A litigation property is any real estate asset involved in a legal dispute—whether over ownership, boundaries, inheritance, or prior agreements. It’s risky territory for buyers and investors.
What Does Litigation Mean?
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Property is under court proceedings or legal challenge
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May involve multiple claimants, unclear title, or pending judgments
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Governed by laws like the Transfer of Property Act and Doctrine of Lis Pendens (Section 52)
Risks of Investing:
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Ownership may be overturned by court
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Possession or registration may be blocked
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Banks may refuse loans
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Long delays and legal costs
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Reputation damage for developers or agents
How to Handle It:
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Conduct title verification and check for pending cases
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Review Encumbrance Certificate and mutation records
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Check for court orders restricting sale
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Consult a property lawyer for legal opinion
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Avoid unless dispute is resolved or court permits transaction
