I am planning to buy a flat in an under construction, multi storied project in Bangalore. The landowner of the project site bought land from the original owners (migrant labourers) who were given the land by the government under grant in the 1970's. The land was converted to non agricultural use and thereafter the District Commissioner gave permission for sale of the land. The project has RERA approval and plans have been approved by the Bangalore Municipal Corpn and NOCs obtained from required agencies. Now, some descendants of the original owners have filed suits for partition, separate possession and declaration of sale deed of the land as non-binding. All these suits have been filed between 2000 and 2015, AFTER the original owners sold the land . These cases are still pending before the courts. The project company has offered to indemnify the flat buyers from any adverse financial implication arising out of the court verdicts but this indemnity is valid only upto date of registration of individual flats, i.e., upto Dec 2021 only My question is: Will the title to my individual flat be considered as free and marketable if I go ahead and buy this flat? If I want to sell the flat in a few years, what problems can I anticipate? Based on your responses I would like to take this conversation further as I am also seeking legal opinion on the land papers.
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Hi, When the suit for partition is pending before the Court it is difficult to say good and marketable title of the whole property. It will adversely affect the title of your property.
[2] The Indemnity of the builder will not helpful. It is only induce you to purchase the same. It is better Don't invest in this type of project.
1) Whether any stay order has been passed by courts ?
2) any sale of flats would be subject to final outcome of the suit
3) even if builder seeks to indemnify you in case any third party claims are made to recover money from builder is Herculean task
You are aware that a litigation is pending before court in respect of the title to the property as well as the erstwhile owners have filed a suit to declare their title besides seeking to declare the subsequent sale deeds as invalid and not binding on them.
This litigation covers the entire property in which the flat which you now propose to buy is also lying.
The details what you have mentioned are subsequent issues, whereas the litigants are disputing the title itself and are requesting the court of law to partition the property and allot their respecitve share in the property.
Therefore if your flat falls within their share of property then you may have to obey the court order, losing your flat, you may or may not compensation especially if the builder goes bankrupt subsequently.
Therefore better avoid buying the property which is under litigation even if the builder assures to clear all the litigation. You may wiat for the litigation to be cleared to buy the property, can wait until then.
If a litigation is ending in respect of an immovable property then it can not certainly be called as free from encumbrance .
There is risk involved in the property in the event of court decision goes against the developer. It is wiser to look for other property.
1. It's advisable to get the property papers checked by a Lawyer and based on his legal opinion, you can take a decision.
2. Since the project company is not going to indemnify the buyer beyond December 2021, it's not advisable to proceed further.
Thank you.
In a case like this where local laws are predominantly involved, only a local lawyer on this portal can answer effectively.
Dear sir,
since the final verdict of the court is still not out, it is advisable not to buy this property.
also remember that the indemnity is up to Dec2021, so why to enter into an already complicated contract when you can buy the same in the other part of the area.
No doubt that the property is RERA approved but to be on a safer side, i advice you not to buy this.
