Supreme Court Decision : Renting out a house is considered a stable source of income. This is why people invest in property—buying houses, shops, and land—and then renting them out. However, many property owners do not pay attention to their rented property. Some go abroad, while others stay in the country but remain busy with their work. All they care about is the rent that reaches their bank account every month. But both before renting out the property and even after renting it out, the owner must keep certain things in mind. Otherwise, they may end up losing their property!
In our country, there are certain rules regarding property under which a tenant can claim ownership of a property after living there continuously for 12 years. Although there are specific conditions for this, and it is not that simple, your property can definitely get into a legal dispute.
Supreme Court Decision : When Can a Tenant Claim Ownership of a Property?
There is a law made during British rule called Adverse Possession. According to this law, a tenant can claim ownership of a property after living in it for 12 continuous years. But there are certain conditions:
- The landlord must not have objected to the tenant’s possession during those 12 years.
- The tenant’s possession must be uninterrupted, with no breaks.
-
The tenant can present property documents, water bills, electricity bills, etc., as evidence.
The Supreme Court has also given a verdict on this matter. In a historic judgment regarding land disputes, the Court said that the person who has possession of the land for 12 years will be considered its owner.
The bench stated that if no one claims ownership for 12 years, the person who possesses the land will be considered its rightful owner. However, this ruling applies only to private land, not government land.
Supreme Court Overturned Its 2014 Verdict
The Supreme Court overturned its own 2014 ruling on land possession. A bench comprising Justice Arun Mishra, Justice S. Abdul Nazeer, and Justice M.R. Shah stated that if no one claims ownership over a piece of land and a tenant has lived on it continuously for 12 years, the tenant will become its owner
In 2014, the Court had said that a person claiming adverse possession cannot demand ownership of the land. The earlier ruling also said that if a landowner wants the land back from a possessor, the possessor must return it.
The latest judgment clarified that Indian law allows a person to claim rights over a property after 12 years of possession. If a land is disputed, the rightful person must file a case within 12 years to reclaim it through court.
Under the Limitation Act, 1963:
- The time limit to claim ownership of private property is 12 years.
- For government land, this limit is 30 years.
-
Complaints about illegal possession must be filed within 12 years.
The Supreme Court further clarified that if possession continues for 12 years without any objection from the owner, the property will legally belong to the possessor. If the possessor is forcibly evicted, they can file a lawsuit within 12 years to protect their rights. A will or power of attorney alone does not make someone the owner of a property.
How Property Owners Can Avoid Such Situations
To avoid such complications, owners should follow these steps:
- When renting out a house, always create an 11-month rental agreement.
- After 11 months, you can renew the agreement.
- The benefit of an 11-month agreement is that it creates a legal break in possession.
-
This break prevents the tenant from claiming ownership through adverse possession.