Property Reconstruction

Property Reconstruction by a Gautam Law Chamber

1. Meaning of Property Reconstruction

Property Reconstruction means regularizing, restructuring, or resolving disputes relating to property, often when the ownership, title, or financial structure is complex.
It covers:

  • Title clearance & legal due diligence

  • Dispute resolution (civil suits, partition, tenancy disputes, encroachments)

  • Regulatory compliance (Municipality Act, Urban Land Ceiling, Revenue rules, RERA, etc.)

  • Reconstruction of property finance (loan restructuring, escrow arrangements, mortgage release)

  • Asset monetization & settlement

In India, banks, NBFCs, real estate developers, and even individuals often need a law firm to act as a reconstruction agency for properties.

2. Scope of Work for Law Firm

🔹 Legal Due Diligence

  • Title search (past 30–50 years revenue & registration records)

  • Mutation, khata, and revenue record verification

  • Checking encumbrances (mortgage, lien, stay orders, etc.)

🔹 Litigation & Dispute Resolution

  • Handling partition suits, tenancy disputes, succession disputes

  • Clearing municipal / revenue objections

  • Representing before Civil Court, High Court, and Revenue Boards

🔹 Financial/Bank Related Reconstruction

  • Assisting in loan restructuring against property

  • Negotiating with banks for release of mortgage/charge

  • Drafting escrow arrangements for property sale proceeds

  • Supporting banks in SARFAESI auctions & NPA property regularization

🔹 Regulatory Compliance

  • Land use change approvals

  • RERA registration and compliance

  • Municipal/Development authority permissions

  • Regularization of unauthorized construction

🔹 Transactional Support

  • Drafting sale deeds, lease deeds, joint development agreements (JDAs)

  • Vetting property documents for investors & corporates

  • Facilitating property investment summits / distressed asset sales

3. Business Models for a Law Firm

A law firm can position itself as:

  1. Property Reconstruction Advisory – assisting clients with property title, disputes, and compliance.

  2. Escrow & Settlement Partner – creating escrow mechanisms for disputed or mortgaged properties.

  3. Bank/Finance Partner – acting as panel lawyer for banks to clear titles & regularize mortgaged properties.

  4. Investor Partner – guiding investors in buying distressed properties with clear legal reports.

4. Advantages of Law Firm as Property Reconstruction Agency

✅ Legal & financial expertise under one roof
✅ Neutral trusted advisor between borrower, bank & buyer
✅ Compliance with RERA, SARFAESI, Registration & Revenue laws
✅ Minimizes litigation and accelerates property monetization
✅ Builds credibility with banks and real estate investors

5. Example Service List for Brochure/Press Note

  • Property Title Verification & Due Diligence

  • Court Dispute & Revenue Clearance

  • Loan/Mortgage Settlement & Escrow Structuring

  • Property Sale/Purchase Agreements & Registration

  • RERA & Municipal Approvals

  • Investor Advisory for Distressed Properties