Restrictions on Registration of Litigated Properties: Tamil Nadu Government Tightens Measures

Chennai:  The Registration Department in Tamil Nadu is gearing up to enforce stricter measures to prevent the registration of properties entangled in legal disputes.

Registration Process in Tamil Nadu

In Tamil Nadu, it is  customary for buyers of properties, including houses and plots of land, to register the sale deeds at the Sub-Registrar's office. During this registration process, it is imperative that the documents are free from any legal encumbrances.

Emphasis on Clear Documentation

The property  buyers are advised to thoroughly investigate such documents before proceeding with registration. As the department moves towards online registration of documents, it continues to emphasize the importance of ensuring that all documents are clear and free from disputes.

Expert Opinion

Real estate  property evaluator, Balamurugan, stated: "Generally, when loans are provided based on properties, banks examine whether there are any civil disputes involved. However, during the process of mortgage deed submission, banks sometimes overlook these issues. This leads to acceptance of documents related to properties embroiled in legal battles as collateral. Problems arise when a court ruling in favor of the opposing party complicates matters for the lender."

Proposed Solution

Balamurugan suggested that the survey numbers of properties involved in civil litigations should be transparently displayed at the respective Sub-Registrar offices. This would enable the public and financial institutions to act with caution. 

Departmental Action

Officials from the Registration Department stated that efforts are underway to block the registration of properties involved in civil or loan disputes. They are considering the publication of survey numbers of such properties to make the information accessible to the public.

Importance of Transparent Information

The move to publicize the survey numbers of disputed properties aims to prevent individuals and institutions from inadvertently dealing with properties under legal scrutiny. This measure will help in safeguarding the interests of buyers and lenders, ensuring they are aware of any ongoing legal issues associated with a property before committing to a transaction.

Conclusion

The Tamil Nadu government's decision to prevent the registration of litigated properties without clear documentation is a crucial step towards protecting the interests of property buyers and financial institutions. By making information about disputed properties readily available, the government aims to foster transparency and reduce the risk of legal complications arising from property transactions. This initiative is expected to enhance the integrity of the property registration process and provide greater security for all stakeholders involved.