Buying property involved in litigation

At a glance

Obtain the pleadings and current orders before committing to a purchase. A pending case can affect the interest acquired even where a deed can technically be executed.

Law and context

Section 52 of the Transfer of Property Act addresses transfers during specified litigation. The nature of the proceeding, property and court orders matter. An existing restraint may create additional consequences beyond the doctrine itself.

Practical next step

Identify the case, parties, property schedule and latest interim directions. Have counsel assess the proposed transaction against the complete record and any required permission.

Important qualifications

This guide does not state that every pending case makes a sale void or that a buyer can disregard litigation disclosed in a search.

Document checklist

• Case pleadings
• Latest orders
• Property schedule
• Proposed sale terms

Sources

• The Transfer of Property Act, 1882 — 52
• Code of Civil Procedure, 1908 — OrderXXXIX

General information. The appropriate course depends on the complete facts, documents and applicable law. Editorial process and website disclaimer.