Merely Registering Property Won’t Confirm Ownership: Supreme Court

The Supreme Court of India in a recent development while deciding a case made an observation that having your property registered would not automatically make you the legal owner of a property. The case was decided by Justice Abhay S. Oka, who held that  registration is merely one part of the process of the legal ownership and cannot be considered as the ultimate final proof.

Registration Isn’t Ownership

The Court observed that:“Mere registration does not establish full ownership rights.”

Thus even if an individual has a registered deed in their name, such person cannot be considered as the true owner of such property unless they have all necessary legal documents as well as proper title to the property as required by the law.

Legal Documents and Validation by Court are Necessary

According to the judgement of the Supreme Court, in addition to registration document, one must prove. 

1. Historical ownership records proving legal title 
2. One must have the physical possession of the property.
3. There shall be no disputes or conflicting claims over the property.

The Court held that, “Legal adjudication remains central to the resolution of property disputes.”

It means that the courts will still have a final say in the matters of ownership, especially in cases where there are conflicts or unclear titles.

How the Judgement Would Affect the Buyers, Sellers, and Real Estate Sector

This ruling will have an affect on everyone involved with the property transactions, i.e. buyers, sellers, builders, or even brokers. The ruling could be summed up in a simple sentence- ownership has to be legally documented and verified and not merely registered.

Advice From the Experts-

If you planning to buy or sell a property, it is advised that you-  

• Verify all related legal documents before buying or selling a property.
• Do not rely on the registration deed only.
• One must conduct a legal due diligence check with the assistance from experienced property lawyers from Sharks of Law.

Supreme Court’s Clarification on Property Possession

Another crucial point the court raised was that physical control and clear title are necessary. Even if the registration is done, if someone else is in possession or a legal case is ongoing, ownership can be challenged.

How This Judgement Matters to Property Buyers.

The judgment could be referred to as a wake-up call for property buyers. It is a general assumption that a registered property will be free from legal issues. However, the ruling forces the buyers to dig deeper. A prospective buyer must-

• confirm who has the possession of the property.
• ensure that there are no legal disputes or pending cases related to the property.
• must confirm that the title is clear and backed by valid documentation.

Steps Property Buyers and Owners Must Follow-

Leading to the judgement by the Hon’ble Supreme Court, property owners and prospective buyers should-

• Ensure physical possession of the property as well as legal documentation.
• Ensure they have a clear title certificate.
• Follow regular visits to the property in order to avoid illegal occupants.
• Consider title insurance to protect ownership.
• Must seek legal counsel from an experienced legal professional from Sharks of Law before finalising their property deal.

Conclusion

The ruling passed in the case of  K. Gopi vs The Sub Registrar, has changed the way property ownership is dealt with in India. Though having your property registered is a necessary step, it can not be said to be the only necessary document required to ensure ownership over a property. In addition to registration, legal clarity, possession over the property, as well as court validation will be necessary for property ownership. 

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