Buying Property in Gujarat? A Lawyer's Guide to Avoiding Legal Pitfalls

Yash Patel
Sep 13
3 min read

Investing in property is one of the most significant financial decisions you'll make. While exciting, the process is filled with legal complexities that can turn a dream investment into a nightmare. In a recent episode of "Property Capital" on News Capital Gujarat, Advocate Yash Patel of the Gujarat High Court shared crucial insights on navigating the technical and legal aspects of real estate transactions.

Here’s a summary of the key legal advice every potential property buyer should know.

1. The First Step: Thorough Due Diligence

Before you even think about finalizing a deal, conducting thorough due diligence is non-negotiable. The history of a property can reveal potential disputes or legal issues that could affect your ownership in the future.

Check the Title History: The most critical step is to verify the property's "Title." This means confirming the chain of ownership to ensure the seller has the undisputed right to sell it. You can do this by examining land revenue records like the 7/12 extract and hak patrak (record of rights).
Use Government Portals: The Gujarat government's 'AnyROR' (anyror.gujarat.gov.in) website is a valuable tool. It allows you to check land records and the history of ownership transactions yourself.
Look for Encumbrances: Ensure the property is free from any burden or "encumbrance." This includes checking for existing loans, mortgages, or ongoing legal cases that could create complications later.
Obtain a Title Clear Certificate: It is always advisable to hire a lawyer to conduct a title search and provide a Title Clear Certificate. This professional opinion confirms that the property has a clear and marketable title, giving you peace of mind.

2. Handling Property Disputes and Encroachment

Even with precautions, disputes can arise. If you find your property has been encroached upon or face other legal challenges, you have several remedies:

Civil Suit: This is a common route for resolving ownership and contractual disputes, such as when a seller backs out after signing an agreement to sell (banakhat).
Criminal Case: If you are a victim of fraud, cheating, or forgery in a property deal, you can file a criminal complaint.
The Gujarat Land Grabbing (Prohibition) Act, 2020: This powerful law provides a specific and faster mechanism to deal with illegal land encroachment. A complaint can be filed directly with the District Collector.

3. Key Legal Points for Inherited Property

Transactions involving ancestral or inherited property have their own set of rules that must be followed carefully.

Equal Rights for Daughters: A landmark 2005 amendment to Hindu succession law gives daughters an equal right to ancestral property as sons. This is a vital point to remember when verifying the legal heirs of a property.
The Importance of a Relinquishment Deed: If one of the legal heirs wishes to give up their share in a property, it must be done through a legally registered Relinquishment Deed (Haq Jato Karvano Lekh). An informal agreement is not legally valid and can lead to future claims and disputes.

4. Advice for NRI Property Buyers

Non-Resident Indians (NRIs) can easily invest in Indian real estate, but there are specific guidelines to follow:

Type of Property: NRIs can freely purchase residential and commercial properties. However, purchasing agricultural land or farmhouses requires specific permission from the relevant authorities.
Power of Attorney (POA): If an NRI is buying property through a representative, the Power of Attorney document must be registered at the sub-registrar's office to be legally valid for property transactions.
Financial Transactions: All property transactions must be conducted in Indian Rupees (INR).

5. How RERA Protects Buyers

The Real Estate (Regulation and Development) Act, 2016 (RERA) was introduced to bring transparency and accountability to the real estate sector, primarily to protect homebuyers.

Access to Information: Developers must register their projects with RERA and upload all documents and project details, including approvals and timelines, onto the RERA website. This allows buyers to verify all information before investing.
Financial Security: A significant portion of the money collected from buyers must be kept in a separate escrow account and can only be used for the construction of that specific project. This prevents developers from diverting funds and helps ensure timely completion.
Protection Against Delays: RERA mandates that projects be completed within the promised timeline. If there are delays, the builder is liable to pay penalties to the buyers.

Conclusion

Navigating property law requires caution and a proactive approach. By verifying all documents, understanding your rights, and seeking professional legal guidance, you can protect your investment and ensure your property transaction is smooth, secure, and successful.

Disclaimer: This blog is for informational purposes only and does not constitute legal advice. It is strongly recommended to consult with a qualified legal professional for your specific real estate matters.