• Buy apartment on a dispute settled land

Hi All, 

I am looking to purchase a flat in apartment that has been built on 3 plots. 

Background of the plots: 
 1. The 4 plots were bought in the year 1988 by Seeta and Jaya(2 each). The 4 plots has been involved in land grabbing issue in 2015 and were sold to using fake PoA given to Vijay by somebody impersonating Seeta and Jaya. The 4 plots were sold to person Ajay & Raghav(2 each). 

2. In 2021, the real owners(Seeta & Jaya) of the plot filed a case and settled in terms of a compromise memo with the defendants. The same has been recorded in the District Munsif court. 

3. As part of compromise a plot was provided to the defendant Ajay. For Raghav, there was a mutual compromise by giving some money. 
The fake documents like PoA and sale deed (registered during land grabbing 2015) has been declared as Null and Void by the District Munsif Court. This statement is also recorded in the encumbrance certificate. The court order certified Xerox copies has been made available. 


 4. For the remaining 3 plots, the real owners has given GPA to a builder to build the apartment. It's a 5 storey apartment and around 10 registrations for the flats have been completed. 

- My question is, can there be in future any issues, where the defendants claim for the plots?
 - The builder has a good reputation in the area and says all the issues were already resolved.
 - Could the defendants cause any issues in the future?
 Is it safe to proceed with the buying of flat?

 I consulted a lawyer and he says, since the compromise has been made, the defendants cannot claim anything in future. He says any 3rd party can claim, however that will not have any significance. So I can proceed with buying the apartment. 

Please let me know your insights.
Asked 3 years ago in Property Law
Religion: Hindu

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6 Answers

It does appear that title is clear and marketable 

 

2) consent decree passed is binding on parties 

 

3) no appeal has been filed 

 

4) you can if you so desire obtain certificate from local lawyer that title is clear and marketable 

Ajay Sethi
Advocate, Mumbai
99811 Answers
8147 Consultations

It is advisable to go ahead with the purchase of the flat as the court has settled all the disputes, the documents are officially deemed invalid, and authenticated copies of the court ruling have been given. 

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

Yes you can proceed with the same

Prashant Nayak
Advocate, Mumbai
34540 Answers
249 Consultations

From what you say,  no doubt there appears no problem but it is always advisable that you obtain a proper legal opinion by producing the relevant documents before an experienced lawyer and proceed only if recommended. 

T Kalaiselvan
Advocate, Vellore
90013 Answers
2497 Consultations

Dear client,  

Based on the information you provided, it appears that the legal issues related to the ownership of the plots have been resolved and that the compromise memo has been recorded in the District Munsif court. The court has also declared the fake documents as null and void and certified Xerox copies of the court order are available. In addition, the real owners have given a GPA to a builder to construct the apartment, and multiple registrations for the flats have already been completed.

However, it is important to note that land disputes can be complex and unpredictable, and it is possible that the defendants may attempt to challenge the compromise memo in the future. It is also possible that other third parties may make claims on the property. While it is a positive sign that a lawyer has given the green light to proceed with the purchase, it may be prudent to conduct additional due diligence to mitigate any potential risks.

Some steps you could consider taking include:

Obtaining a certified copy of the compromise memo from the court to ensure that the settlement terms have been accurately recorded.

Conducting a title search to verify the ownership status of the plots and to check for any encumbrances or pending legal disputes.

Verifying the builder's reputation and track record of completing projects without legal issues.

Consulting with a lawyer to review all relevant legal documents and provide additional guidance on any potential risks or issues.

It is important to conduct thorough due diligence before making a significant financial investment, such as purchasing a flat in an apartment. While there may always be some level of risk involved, taking proactive steps can help mitigate potential issues and provide greater peace of mind.

 

 

 

Anik Miu
Advocate, Bangalore
11019 Answers
125 Consultations

as per versions, it is said that court has passed orders specifically for the title of the real owners. If it is so, you can proceed forward to buy the flats after having a legal opinion on the perusal of the documents from an experienced lawyer.

Kumaresan
Advocate, Coimbatore
38 Answers

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