Registration alone doesn’t prove ownership, verify seller’s title first

An unbroken, valid chain of documents, and lawful possession are other prerequisites

- SANJEEV SINHA

A recent Supreme Court ruling has underscored a crucial point for homebuyers and heirs: A registered sale deed alone doesn’t guarantee ownership.

In the Mahnoor Fatima Imran vs M/S Visweswara Infrastructure Pvt Ltd case, the Supreme Court addressed a property dispute in which the buyers relied on registered sale deedsexecuted by ahousing society to claim ownership. The society itself based its ownership on a 1982 agreement of sale. However, the Court discovered that the land had already vested in the government since 1973 under land ceiling laws. Further, the 1982 agreement was never registered and was later “validated” through fraudulent means. In otherwords, the society never legally owned the land, and hencewasnotina position to pass onalawful title to buyers.

Key takeaways

Through this case, the Supreme Court hasclarified that property registration is merely a public record or notice ofa transaction not proof of ownership. “Legal ownershiparises only whenthe seller has a clear and undisputed title and lawful possession. If the seller’s title is defective due to fraud, encumbrances, government acquisition, or other irregularities, registration alone cannotcurethose flaws,” says Shankey Agrawal, partner, BMR Legal.

Buyersshould treat registration as a procedural step, not a guarantee of ownership. They must conduct thorough due diligence before purchasing aproperty.

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