It has recently been found that the malicious act of selling one property to multiple buyers by the builders increased substantially. So here we are discussing this problem in different parts with all the intrinsic details so that you can have the vivid picture of this issue:

a)  What is the sale of Property?

  • A sale of the property is a legal transfer of ownership from one person to another against some consideration.
  • Sale of property is done by executing sale deed between the Transferor (Seller) and the Transferee (Buyer).
  • The deed of sale should be registered with the registrar in whose jurisdiction the location of the Property falls.

b)  Why is it illegal to sell same property to two buyers?

  • Any property for which ownership has already been registered in the name of the owner then only the owner has a right to sell or transfer it.
  • If any builder sells the same property to multiple persons then it makes the title of the property defective.
  • If the property which already has the title and without the knowledge of the registered owner, the builder of the property sells it to another buyer then this becomes an illegal act.

c)  Remedies Under Indian Penal Code

  • The selling of property to another person which already has a legal title is an illegal act under Section 420 of the Indian Penal Code.
  • Section 420 of the Indian Penal Code deals with the act of cheating and dishonesty which induces the delivery of property to any person.
  • The punishment under Section 420 of Indian Penal Code is imprisonment of 7 years and fine.

d)  Precautions:

As discussed above, the ownership of the property can only be registered or transferred through sale deed and the records for the same remains with the Registrar in whose jurisdiction the property is located so if you are planning to buy a property then below-mentioned are some measures to prevent any loss or damage which might occur:

  • Inspection of the previously executed sale deed, if any, of the property in which you are going to park your funds.
  • One has to apply to the Registrar office under whose jurisdiction the property is situated, to obtain the certified copy of the previously executed sale deed, if any.
  • Certified copy of the Sale deed can be obtained on the payment of requisite fee and stamp duty.
  • After obtaining the certified copy of the sale deed the ownership of the property can clearly be identified.
  • If the property is already registered in the name of other person and the same property is the builder is offering you to buy, then, in this case, you can ignore the proposal to mitigate your loss.

In the light of above, it can clearly be concluded that though there are legal remedies available the damage or loss which may occur at the later stage could be prevented at the very early step so rather facing hassles later on act wisely and save yourself.

Note – Please note that the above article is for education purpose only. This is based on our interpretation of laws which may differ person to person. Readers are expected to verify the facts and laws.


  1. Sir,
    I paid Rs.2,00,000/- for booking flat NO. G 803 in Golden Apartments, Hubli Karwar Road, Hubli on 29-5-2019 through RTGS from my Bank account, in Bangalore, to the joint account of the owners. After receipt of the money, the sellers closed the joint account and one of the owners asked me to remit further amount/s to his single account, which i refused and asked for refund of the money since the property is in the joint names After my writing to the Police, he was called by the Commissioner of Police, Hubli and was warned to refund my money. He issued me a cheque on 13.11.2019 for full amount and given me a letter written by him confirming the same. After repeated requests, he agreed to present the cheque on 6.1.2020 and the cheque bounced. I issued him notice, letters for which he did not reply. I understand he has been called by Hubli Police and taken his statement recently. I also suspect he must have sold this property to another person.
    Kindly advise.

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