DEALS TO BE DONE EXTRA CAREFULLY
Property Deals That Require Extreme Caution in Delhi NCR
Buying or selling property in Delhi can be highly rewarding — but certain types of deals demand utmost care, expertise, and professional guidance. Below are the most sensitive kinds of property transactions and why they require deep attention before you invest or collaborate.
1. Foreclosure Deals of Banks
Q: Why are foreclosure deals risky?
A: Because there is no money-back guarantee from banks if the borrower later sues the bank or the purchaser of that property. Such deals may seem attractive but can turn into long legal battles.
2. Unauthorized Properties
Q: Are unauthorized properties safe if they have sale deeds or electric connections?
A: No. Unauthorized properties remain unauthorized even if they get sale deeds, bank loans, or utility connections. They are always legally weak and can face demolition or regularization issues anytime.
3. Under Construction Properties / Bookings
Q: What are the risks in under-construction property bookings?
A: Buyers often pay builders in advance, sometimes in “gray” (unaccounted) money. Some (not all) builders have faced civil or criminal cases, and several have been jailed. Payments without strong legal backup can be dangerous.
4. Power of Attorney (GPA) Deals
Q: Why should one be cautious with GPA or Power of Attorney deals?
A: As per the landmark Supreme Court judgment in Suraj Lamp Industries, GPA or Sale Agreement are not valid instruments for property transfer. Yet, half of Delhi’s properties are still sold this way. Be extra careful, especially in privately developed colonies built on agricultural land.
5. “Will”-Based Properties
Q: Are properties based on a Will reliable?
A: No. Registered or unregistered Wills are easily challenged. Deal only if the Will is probated or you know the family personally. Otherwise, avoid — as ownership can be disputed anytime.
6. Properties with Suspicious Transaction History
Q: How can past transactions create risk?
A: Properties with unverified documents like old GPAs, Wills, or ATS can be fraudulent. If sellers can’t show bank proof for cheque payments or registration history, it’s a red flag. Such deals can lead to misrepresentation or fraud.
7. Properties with Restricted Construction or Usage Rights
Q: Are all Delhi properties free for construction or modification?
A: No. Many properties have strict usage or construction limits.
- (i) Properties near protected monuments under the ASI Act face construction bans within 100–300 metres. Violations can lead to demolition.
- (ii) Certain DDA flats or zones like Lutyens’ Delhi have height and usage restrictions.
- (iii) Always verify permissible construction before investing.
8. Properties with Structural or Maintenance Issues
Q: Why inspect physical condition carefully?
A: Because structural flaws or poor maintenance can result in costly repairs or safety risks. Always include inspection in your due diligence.
9. Deals Involving Multiple Intermediaries or Brokers
Q: Are multi-broker deals risky?
A: Yes. When multiple intermediaries are involved, confusion and disputes over commission or price often occur. Define everything in writing — roles, commission, and responsibilities — or avoid.
10. Shared Access Properties
Q: What’s the issue with shared access or roof rights?
A: Shared driveways, parking, or roofs often lead to neighbor disputes. Confirm physical measurements and site plans before buying.
11. Leasehold Properties with Expired or Soon-to-Expire Leases
Q: What’s the risk with leasehold properties in Delhi?
A: Many DDA or L&DO leasehold properties have expired leases. Renewal may be costly or denied, making resale or financing very difficult.
12. Tenanted Properties under Delhi Rent Control Act
Q: Why avoid tenanted properties with DRC protection?
A: Because protected tenants cannot be evicted easily. Such properties become nearly unsaleable for self-use.
13. Properties Under Litigation
Q: How do legal disputes affect a property?
A: Court cases, partition disputes, or stay orders can block ownership for years. Always check court records and sub-registrar files before signing any agreement.
Conclusion
Delhi’s real estate market is full of opportunities — and hidden risks. Truly clean titles are rare, and many properties (even in premium zones) face legal, structural, or regulatory issues. From Sainik Farms’ unauthorized status to ASI restrictions near heritage sites, caution is vital.
Deal only through reliable, certified realtors and never skip title verification, physical inspection, or legal due diligence.
Disclaimer
This is my personal opinion, shared based on my experience and knowledge. Please form your own opinion based on your circumstances.
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