Real Estate Laws
Buying a property, especially for new owners, can be a confusing process. There are so many complex steps involved and the language used is full of jargon and legal jargon that leads to further confusion. Let us demystify the process for you and explain the real estate laws in India in simple terms.
Real estate laws
Real estate laws in India are governed by both state laws and federal laws. This is because according to the Constitution of India, "Land" is included in the State List, while "Transfer of ownership and registration of deeds and documents" is included in the Concurrent List. Because of this, the process of buying and registering a property can seem complicated. First, let's understand the basics of real estate law in India.
The purchase of property in India falls under RERA.
The Real Estate Regulation and Development Law of 2016 and the body that regulates it, the Real Estate Regulatory Authority or RERA, governs the development, commercialization and sale of real estate projects. It was established with the aim of protecting the interests of consumers in real estate. It established a mechanism for the rapid resolution of disputes through the Real Estate Regulatory Authority and the Court of Appeals. It also requires the mandatory registration of projects and key players in the real estate sector.
Indian real estate law does not provide for a property registration system. Rather, the concept of registration is related to the documents under which the title is transferred from the buyer to the seller. All instruments and documents related to land must be registered in accordance with the Registration Act 1908. The document registration system is well defined in India with strong government machinery registering and maintaining these documents.
The India Stamp Act of 1899 regulates the payment of stamp duty related to land. It is an important component of the costs related to the registration of the property and the buyer must pay it to the state governments. Since it is collected by the state government, fees vary from state to state. In most states, stamp duty is paid in terms of a percentage of the total value of the transaction. It does not matter which type of properties you are going to buy, what you are going to opt you should buy a property from a trusted builder. For example, you are opting for 2 or 3 BHK flats in Jaipur, Mumbai, etc.
The other act that comes into play in the purchase and sale of the property is the Transfer of Property Act of 1882. According to the Transfer of Property Act, a 'sale' is the transfer of property in exchange for a price paid or promised or a part paid and part promised price. In the case of tangible real property, the transfer can only be made by registered documents, as listed in the Registration Act of 1908 mentioned above. Under Section 55 of the Act, the seller has the duty to disclose to the buyer any material defect in the seller's property or title of which the seller is, and the buyer is unaware and that the buyer was unable, with reasonable care. , discover. Misrepresentation gives the buyer the right to compensation or indemnification from the seller.
Although the seller discloses all information about the property, as well as its title, the buyer must act with due diligence and verify the seller's title. That was a short introduction to real estate laws in India. These laws are always followed by the top builders in Jaipur, Mumbai, Delhi, Pune, etc.