Unclear papers can affect the value of a home for rental and resale purposes. If a home is taken on rent, even if the papers are not clear, the loss that can be caused will be limited, as most tenants sign a deal for only 11 months. However while purchasing a home, it is important to ensure that the papers are clear, especially in India.
Increasingly well connected people are using unethical methods to get possession of expensive homes due to rising corruption, nepotism levels in indian intelligence and security agencies who cannot be identified or held accountable.
The family occupying the home may be respectable, yet when the papers are checked there are some unexplained problems.
For example the electricity bill will continue to be in the name of the previous owner.
In some cases, there is no change in the name of the owner in the electricity bill for more 3 decades.
This can be a major problem while purchasing homes which are constructed a few decades ago.

So when real estate agents or service providers are assessing the value of a home, they should also consider whether there is any controversy related to the ownership of the home, which could cause a legal problem later.