Produced by: Navneet Dubey
Designed by: Manoj Kumar
Investing in property is a significant decision that demands due diligence, attention to detail, and ample research.
Unregistered property may seem tempting due to the potentially lower purchase price, but it is fraught with numerous risks. Here are some reasons why you should avoid buying unregistered property or flats.
Unregistered property lacks legal recognition, exposing you to potential legal battles and disputes over ownership. It can be challenging to ascertain its authenticity and identify true owners.
The lack of proper documentation and transparency increases the chances of fraud, such as double-dealing of property.
Banks and financial institutions avoid granting home loans against unregistered property due to their risky nature, making them useless as collateral.
Since the flats have unofficial status, the owner cannot claim tax benefits that usually come with property investments.
Unregistered properties often don’t have electricity, water, or sewage connections as they are not officially recognized or mapped by the government.
Without legal documentation and property boundaries, encroachment issues are common, leading to hostile disputes.
Selling an unregistered property can be daunting as the associated risks and complications dissuade potential buyers.
These properties often lack planned infrastructure development, such as roads, parks and community facilities, which can disrupt the quality of life.
Unregistered properties run the risk of being demolished by government authorities as they are often built without following due process and obtaining necessary permissions.