In the Indian real estate market, the transfer of property title is not just a formality—it is a legal necessity. A clear title ensures rightful ownership and protects homebuyers from future disputes. One of the most important concepts in property law is the “chain of transfer”, which refers to the sequence of ownerships a property has gone through before reaching the current buyer. Ensuring a clean and legal transfer in this chain is essential for a secure transaction.
What is a Property Title and Why is it Important?
A property title is a legal document that proves ownership of a particular piece of real estate. When someone buys a property, the ownership must be legally transferred from the seller to the buyer after verifying the complete history of ownership—the chain of transfer.
Every buyer who has paid the agreed consideration through a legal mode of payment and has conducted proper due diligence is considered a bona fide buyer under Indian law. Such buyers are protected if the chain of transfer is clean and undisputed.
Section 17 of the RERA Act, 2016: Safeguarding Ownership Transfer
Section 17 of the Real Estate (Regulation and Development) Act, 2016 (RERA) deals specifically with the transfer of title in real estate projects. It makes it mandatory for promoters (builders) to execute a registered conveyance deed in favor of the allottee (buyer), which includes:
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- Transfer of the plot, apartment, or building.
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- Handover of physical possession.
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- Transfer of the undivided share in common areas to the association of allottees or the competent authority.
This must be done within a specified period, according to the sanctioned plans and local laws applicable in that area.
When Must the Conveyance Deed Be Executed?
The timeline for executing the conveyance deed depends on the type of project:
For Single Building Projects:
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- Within three months from the date of receiving the Occupancy Certificate, or
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- If 51% of total allottees have paid the full consideration amount—whichever is earlier.
For Larger Layouts with Multiple Buildings:
If no specific time is agreed upon for the title transfer:
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- Within one month from the registration of a Co-operative Society or Association of Allottees, or
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- Within three months from the issuance of the Occupancy Certificate—whichever is earlier.
These rules ensure timely and lawful property ownership transfer, reducing the risk of legal disputes.
What If the Promoter Fails to Deliver Possession?
RERA protects buyers if the developer:
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- Fails to deliver possession on time,
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- Violates terms of the agreement,
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- Faces cancellation of registration, or
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- Is unable to complete the project for any reason.
In such cases, the promoter is liable to refund the entire amount received, along with interest and compensation as prescribed under the Act. If the buyer decides not to withdraw, the promoter must pay monthly interest for each month of delay until the property is handed over.
Title Insurance: An Extra Layer of Protection for Homebuyers
To protect buyers from disputes in the chain of ownership, the Real Estate Regulatory Authority has made it mandatory for developers to purchase Title Insurance. This insurance covers:
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- Financial losses,
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- Legal expenses, and
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- Other costs incurred due to wrong or defective property titles.
This safeguards buyers from unexpected legal troubles arising from prior owners and ensures they receive clean, marketable ownership.
Conclusion
Whether you’re buying a flat, apartment, or plot in India, understanding the legal transfer of property title under Section 17 of RERA is crucial. A registered conveyance deed, proper due diligence, and awareness about title insurance are key to a safe and secure investment.
For developers, following these rules is not just a legal obligation—it builds trust and credibility in the eyes of homebuyers.