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Issues That Make Buyers Walk Away
Deal breakers are property issues so serious that most buyers will walk away regardless of price. Understanding these helps sellers prepare and buyers identify red flags early.
In Uttarakhand's complex land environment - with historical government land conversions, multiple inheritance generations, and layered regulations - deal breakers are more common than sellers realize.
Some issues can be resolved before sale (pending mutations, missing documents). Others are fatal flaws that cannot be fixed (government land history, irreconcilable ownership disputes). This guide helps identify both.
Properties with deal breaker issues often remain unsold for years, attracting only uninformed buyers who later discover problems and back out. Better to identify and address issues upfront.
5 Fatal Issues
5 Common Issues
Title and compliance issues that cannot be overlooked
If 12 Sala records show property was ever government land (sarkar, gram sabha, van panchayat, forest), original conversion may be questionable. Government can reclaim even after decades.
Fatal - usually not fixable
Example: Properties near Jim Corbett that were forest land show forest department entries in old records.
All legal heirs must consent for valid sale of inherited property. Missing or estranged heirs, especially daughters post-2005 amendment, create title defects that void future sales.
Fatal unless resolved - all heirs must consent
Example: Daughter living abroad refuses to sign NOC. Property cannot be sold cleanly.
Active court cases disputing ownership, partition suits, or fraud allegations make property unsaleable. Courts may grant stay orders blocking registration.
Blocking - must be resolved first
Example: Cousin filed partition suit years ago. Case pending in civil court.
Forged sale deeds, impersonation, or sales without proper authority in ownership history. Once discovered, entire subsequent chain is questionable.
Fatal - title is defective
Example: Great-grandfather's "sale" to ancestor was actually forgery. All subsequent titles affected.
Property that encroaches on government land, forest area, or public road faces demolition. Even long possession doesn't create ownership rights on government land.
Fatal - encroachment is illegal
Example: Construction extends 50 feet into forest reserve. Forest department can demolish.
Site conditions that significantly impact value or usability
Property with no legal access road (dependent on neighbor's goodwill) is effectively landlocked. Without registered easement, access can be blocked.
Severe - requires easement registration
Example: Only access is through neighbor's field. Neighbor can fence tomorrow.
Properties in active landslide zones face significant risks. Government may prohibit construction or existing structures may be condemned.
Severe - safety risk
Example: NDMA has marked area as landslide prone. Insurance unavailable.
Properties in Eco-Sensitive Zone core areas (within 1km of national park boundary) face severe restrictions. New construction may be completely prohibited.
Blocking - verify exact restrictions
Example: Property 500m from Rajaji National Park. No construction permitted.
Existing buildings without MDDA/HRDA approval or significant deviation from approved plans face demolition risk. Regularization may not be possible.
Severe - may be regularizable
Example: Three-story building in area where only two stories permitted. Cannot be regularized.
Active boundary disputes where neighbors claim significant portion of property. Survey shows encroachment by or on property. Litigation may take years.
Blocking - must be resolved
Example: Neighbor built boundary wall 20 feet inside your documented boundary.
Real issues discovered during verification
Buyer paid ₹25L token for "clear title" property in Nainital. Truth Report revealed 12 Sala showed "van bhoomi" (forest land) entry from 1984. Forest department had issued encroachment notice in 2019. Buyer recovered token and walked away.
Dehradun property sold after father's death. Two sons signed. Sister who emigrated to Canada in 1990 never gave NOC. 15 years later, sister's heirs filed suit. Current owner faces litigation.
Beautiful Almora property with mountain views. Access road passed through three private properties without registered easement. After purchase, one owner blocked access with fence. Buyer stuck with unusable property.
Some can (pending mutations, missing documents, boundary disputes with willing neighbors). Others cannot (government land history, fraudulent titles, permanent encroachment). Professional verification identifies which is which.
Legally, sellers must disclose material defects. Practically, hiding issues leads to deal failure when buyers discover them, plus potential fraud liability. Honesty leads to fewer failed deals.
For minor issues, yes. For fatal flaws like government land history or fraudulent titles, no price is low enough. Smart buyers know some risks cannot be priced away.
12 Sala records, Encumbrance Certificate, court case search, surveyor verification, and advocate title opinion. Professional due diligence covers all bases systematically.
Seller assurance means nothing legally. Buyers must verify independently. If seller refuses to provide documents for verification, that itself is a red flag.
Title insurance in India is limited. Most policies exclude known defects and government land claims. It's not substitute for thorough due diligence.
Last updated: January 2026
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