Property registration is not proof of ownership: Supreme Court

Until now, most people believed that once a property is registered in their name, the ownership is legally theirs. However, this perception has been challenged by a recent Supreme Court verdict, which clarified that property registration alone is not sufficient proof of legal ownership. This ruling came in relation to a case involving Bhavana Co-operative Housing Society. The society had purchased 53 acres of land in 1982 and sold it to various buyers. The matter eventually reached the Supreme Court following legal disputes. The Court observed that a registered sale deed is not conclusive proof of ownership. It is merely evidence of a transaction — a record of sale — but does not, by itself, establish lawful ownership. This is a significant clarification, as buyers often assume that registration of the sale deed alone secures legal title. The Supreme Court has clarified that legal ownership of a property requires a clear and undisputed title—a registered sale deed alone is not sufficient proof. This has significant implications for both developers and homebuyers. Developers must now ensure that properties have a clean and marketable legal title before offering them for sale. On the other hand, buyers must exercise greater due diligence before finalising a purchase. This includes verifying whether the seller holds an undisputed legal title, confirming the possession status of the property, and consulting a property lawyer to thoroughly examine all documentation. Key documents that buyers should review include the title deed, sale deed (if the seller had purchased the property earlier), possession and allotment letters, registered wills (in case of inheritance), and property tax receipts. This judgment emphasizes the need for thorough legal scrutiny to avoid potential disputes and to establish rightful ownership. In short, registration is necessary, but not sufficient for proving ownership. Buyers should go beyond paperwork and ensure legal clarity before investing.