A builder can technically attempt to sell flats during a pending ownership dispute in Delhi, but doing so exposes both the builder and the buyer to serious legal risk, because any such sale remains subject to the doctrine of lis pendens under Section 52 of the Transfer of Property Act, 1882, meaning the outcome of the pending suit will bind the buyer regardless of the sale transaction. If the litigation ultimately goes against the builder, or against whoever the builder derived their title from, the buyer's purchase can be rendered ineffective or substantially compromised, even though they paid full consideration in good faith.

Beyond the civil law consequences, a builder selling flats during a pending ownership dispute in Delhi involving a registered real estate project also faces potential regulatory consequences under the Real Estate (Regulation and Development) Act, 2016, since builders are required to disclose all pending litigation affecting the title of the project at the time of registration with the Real Estate Regulatory Authority, and failure to disclose an ongoing ownership dispute can amount to a violation inviting penalties, project deregistration, or compensation claims from affected buyers under Sections 12 and 18 of the Act.

If you are a party to an ownership dispute and discover that the builder or opposing party is proceeding to sell flats despite the pending litigation, the appropriate and urgent remedy is to move an application for a temporary injunction under Order 39 Rules 1 and 2 of the Code of Civil Procedure, 1908, specifically restraining further sale, booking, or registration of units until the dispute is resolved, and where sales have already occurred, to seek impleadment of the affected buyers so that the final decree binds them directly rather than triggering fresh rounds of litigation.

For prospective buyers considering a flat where the underlying land title is under litigation, thorough due diligence, including a title search, RERA registration verification, and encumbrance certificate review, is essential before parting with any money, and the Top Property Lawyers in Delhi | Aapka Legal Advice regularly conduct exactly this kind of pre-purchase verification for buyers in Delhi's real estate market. If you are already a party to a title dispute and are concerned about ongoing sales by the builder, reach out via Aapka Legal Advice promptly to explore an urgent injunction application.

Where a builder deliberately conceals a pending ownership dispute to induce buyers into purchasing flats, this may amount to cheating and misrepresentation under the Bharatiya Nyaya Sanhita in addition to RERA violations, and the platform's panel of retired judges, together with its criminal lawyers, can advise on pursuing both regulatory complaints and criminal action where warranted. In summary, a builder selling flats during a pending ownership dispute in Delhi creates significant legal exposure for all parties involved, so both litigants seeking to restrain such sales and prospective buyers conducting due diligence should treat this situation with considerable caution.