Why is registration not enough to prove you own a property?

'Registration provides evidence, but not ownership,' warns SC in a ruling that could impact thousands of Indian homebuyers.

Don't want to miss the best from Business Standard?

In a significant ruling, the Supreme Court has reiterated that merely registering a property does not make you its legal owner. The judgement, delivered in the Mahnoor Fatima Imran vs M/S Visweswara Infrastructure Pvt Ltd case, has direct implications for millions of Indian homebuyers and investors. If you’ve bought a property based solely on a registered sale deed, you may want to read the fine print and go beyond.

 

Registration is not ownership: What the law actually says

 

“Ownership of a property comprises several aspects, of which registration is only one,” says Harsh Parikh, partner at a law firm, Khaitan & Co.

 

Under Indian law, properties above ~100 require registration. But that’s not all. “A buyer must also prove full payment, possession, and custody of original title documents,” he explains.

 

“Registration provides prima facie evidence of a transaction, but it doesn’t confer valid ownership if the transferor lacked the legal right to sell,” added Rakesh Malhotra, chairman and director of PRIME Developments.

 

When registered property deals can still be invalid

Even a registered sale can be set aside by courts in several scenarios:

 

“If the buyer hasn’t fully paid, or fraud, coercion, or impersonation is involved,” says Parikh.

 

“If the seller is a minor, mentally incompetent, or doesn’t legally own the property,” adds Malhotra.

 

Aman Sharma, MD of Aarize Group, notes that lack of government approvals, like change of land use, can also render a sale invalid.

 

In short, a registered paper doesn’t protect a buyer from a flawed or forged transaction.

 

How to verify property title the right way?

 

Experts unanimously stress the need for robust due diligence before buying any property:

 

• Examine the full chain of title for at least 30 years 
• Check encumbrance and mutation records 
• Ensure there’s no pending litigation or tax dues 
• Issue a public notice to invite claims 
• Verify zoning permissions and consult a property lawyer

 

“Simply holding a registered deed is not enough. You must confirm the seller actually owns what they’re selling,” cautions Malhotra.

 

The SC’s message: Buyer beware

 

The ruling underscores a long-standing principle, aveat emptor, or “buyer beware.”

 

“The court has clarified that title flows from lawful ownership, not just paperwork,” says Sharma. If a registered deed is based on fraud or defective title, buyers could face eviction, lose money, or get entangled in court cases.

 

For Indian property buyers, the message is clear: don’t mistake registration for legitimacy. Do your homework, get expert help, and verify every layer of ownership.