Lack of proper documents required for buying and selling property in India can result in financial loss, legal troubles, or even cancellation of the transaction. Some major risks include:
Ownership Disputes: Without a clear title deed, there may be multiple claimants to the property.
Legal Invalidation: Missing sale deeds or agreements can make the sale legally void.
· Encumbrances & Liabilities: An absent Encumbrance Certificate might hide loans or mortgages on the property.
· Delays in Registration: Incomplete property registration papers can stall the transfer process.
· Regulatory Non-Compliance: Absence of required approvals like Occupancy Certificate or RERA compliance can lead to penalties.
Financing Issues: Banks may reject home loan applications if the property lacks necessary legal documentation.