Litigation Property: Meaning, Risks & How to Handle It

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A litigation property is any real estate asset involved in a legal dispute—whether over ownership, boundaries, inheritance, or prior agreements. It’s risky territory for buyers and investors.

What Does Litigation Mean?

  • Property is under court proceedings or legal challenge

  • May involve multiple claimants, unclear title, or pending judgments

  • Governed by laws like the Transfer of Property Act and Doctrine of Lis Pendens (Section 52)

Risks of Investing:

  •  Ownership may be overturned by court

  •  Possession or registration may be blocked

  •  Banks may refuse loans

  •  Long delays and legal costs

  •  Reputation damage for developers or agents

How to Handle It:

  • Conduct title verification and check for pending cases

  • Review Encumbrance Certificate and mutation records

  • Check for court orders restricting sale

  • Consult a property lawyer for legal opinion

  •  Avoid unless dispute is resolved or court permits transaction

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