Property registration in India is mandatory for all immovable property transactions exceeding ₹100 as per Section 17 of the Registration Act, 1908. According to latest reports, registration is effectively obligatory since almost every property now exceeds this threshold. The registration process requires specific documents including a sale deed, Aadhaar, PAN cards, passport size photographs of both parties, property tax receipts, and latest property cards with dues cleared by the seller. Banks trust registered titles, and registered assets fetch better resale value, making proper documentation essential for property transactions.
A recent Reddit post by a homebuyer has highlighted the potential risks of purchasing resale flats without proper due diligence. According to reports from Business Standard, the buyer purchased a flat in 2022 through a bank loan, with most of the transaction handled by a broker. The seller reportedly assured the buyer that around ₹80,000 in pending maintenance dues would be cleared. However, a few months after moving in, the apartment association demanded payment from the new owner, claiming he should have obtained a no-objection certificate (NOC) before buying the property. The issue remained unresolved until former committee members approached the buyer again, demanding payment.
Legal experts confirm that there is no single law across India that automatically transfers previous owner's maintenance liability to buyers. As reported by Business Standard, Alay Razvi, managing partner at Accord Juris, explains that the legal position depends on applicable state apartment law, association registered by-laws, and terms of the sale deed. Fazl Askari, senior associate at PSL Advocates & Solicitors, notes that in some states, buyers and sellers may be jointly liable for unpaid common expenses, while in others, the matter is governed by contractual terms and local regulations. Madhura Samant, founder of Elarra Law Offices, adds that courts in several jurisdictions have allowed housing societies to recover maintenance arrears from current owners.
Experts explain that maintenance dues generally do not appear in public land records, and property registration primarily verifies ownership documents, stamp duty, and statutory requirements rather than society accounts. According to Business Standard reports, Shravanth Shanker, managing partner at B. Shanker Advocates LLP, notes that registration authorities generally do not examine private maintenance disputes, while banks primarily focus on marketable title and property value as security. Tushar Kumar, advocate at Supreme Court, confirms that registration authorities do not examine private maintenance disputes unless local laws specifically require clearance of maintenance dues before transfer.
Legal experts emphasize that most disputes can be avoided through proper due diligence before purchasing. As reported by Business Standard, experts recommend obtaining a written no-dues or maintenance clearance certificate from the apartment association, asking for a statement of outstanding maintenance charges, and ensuring the sale deed clearly states that all dues up to the date of sale have been paid by the seller. Shashank Agarwal, founder of Legum Solis, advises buyers to collect maintenance records, correspondence with the association, and written undertakings from sellers before concluding transactions. Samant suggests buyers may consider retaining part of the sale consideration until the association confirms all maintenance dues have been cleared.
