Failing to transfer property ownership legally in India can lead to several severe consequences, both legal and financial. The primary issue is the lack of legal validation. Without proper registration, the buyer does not gain legal ownership of the property, leaving the seller as the lawful owner. This leaves the buyer vulnerable to disputes and legal challenges, as they do not possess a legally binding document to assert their ownership rights​.

Additionally, without legal registration, the property does not get updated in official records, such as municipal or revenue records. This oversight can lead to complications in future transactions, as accurate mutation records are essential for any subsequent legal or financial dealings involving the property. This scenario underscores the necessity of consulting a land ownership dispute lawyer India to ensure proper legal procedures are followed​​.

Financial repercussions include the inability to avail of tax benefits or accurately assess property taxes, as government authorities rely on registered documents for these purposes. Moreover, unregistered properties are less marketable, as potential buyers are less likely to invest in properties with unclear titles​.

Unregistered property transactions are also not enforceable in court, meaning any disputes or claims related to the property cannot be legally defended. This situation can be particularly problematic in cases of fraudulent claims, as unregistered transactions do not provide a legally binding document that can be used as evidence. To avoid these issues, it is crucial to consult with a land ownership dispute lawyer India to navigate the complexities and ensure all legal requirements are met​.