Why Renting Out Property Now Demands Extra Caution
Investing in property has always been considered a smart financial move. Many people build houses, shops, or purchase land to rent out and generate steady income. However, a recent Supreme Court verdict has made it clear that landlords need to be more careful than ever. If certain conditions are met, tenants could legally claim ownership of a rented property. Read on for the complete details.
A Small Negligence Could Lead to Big Loss
Often, property owners rent out their assets focusing solely on receiving regular rental income. However, negligence in monitoring the property could now result in losing ownership rights altogether. Landlords who ignore their rented properties might face serious legal consequences under new property possession rules.
Supreme Court’s Major Verdict on Property Possession
In a significant ruling, the Supreme Court stated that if a tenant has occupied a property continuously for 12 years without any interruption or ownership claim from the landlord, that tenant can legally become the owner. This rule applies strictly to private properties and not to government-owned lands.
Conditions for a Tenant to Claim Ownership
To legally claim ownership through adverse possession, a tenant must meet specific criteria:
- The landlord must not have objected to the possession during the 12-year period.
- Utility bills like water and electricity bills or a valid property deed must support the tenant’s claim.
- The possession must be continuous and undisrupted for the entire 12 years.
If these conditions are fulfilled, the tenant can file for ownership under adverse possession laws.
Legal Sections Related to Property Disputes
Several legal provisions deal with issues surrounding property disputes:
- Section 406: Covers cases where trust is misused to seize property. Victims can register complaints under this section.
- Section 467: Applies when false documents are created to fraudulently claim property. This is a serious, non-compoundable crime and is handled by a first-class magistrate.
- Section 420: Addresses fraud, deceit, and false promises related to property. Victims must file legal action if they face such issues.
Adverse Possession Laws: A Historical Perspective
The concept of adverse possession dates back to British rule. According to this law, if a person lives on a property for 12 consecutive years without any legal challenge from the owner, they can claim legal ownership. However, the tenant must provide solid documentary evidence to back their claim.
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