Common real estate regulations and guidelines in India
Buying a house may be difficult, particularly for first-time buyers. There are several technical procedures to fulfil, and the terminology used is riddled with legalese and jargon, further complicating matters. Allow us to demystify the method and give a simple explanation of Indian real estate rules.
Both state-specific and national rules apply to India’s real estate business. This is because “Land” is specified in the Indian Constitution’s State List, whilst “Transfer of property and registration of deeds and papers” is contained in the Concurrent List. As a result, the process of acquiring and registering property appears to be complicated. Let us first understand the principles of Indian real estate law.
RERA governs property acquisitions in India:
The Real Estate (Regulation and Development) Act, 2016, and the institution established under it, the Real Estate Regulatory Authority, or RERA, control the establishment, promotion, and sale of real estate projects. It was established to protect the rights of purchasers in the real estate industry. It formed the Real Estate Regulatory Authority and the Appellate Tribunal to help resolve issues quickly. Furthermore, it mandates the registration of all real estate developments.
All documents and paperwork connected to land must be registered under the Registration Act of 1908. The technique for registering papers in India is well developed, and there is a robust government infrastructure in place to register and handle these records.
The Indian Stamp Act of 1899 governs the payment of stamp duty on real estate. It is a large percentage of the costs involved with property registration and must be paid to state governments by the buyer. Because the charges are gathered by the state government, they vary from state to state. Stamp duty is typically charged as a percentage of the entire transaction amount in the majority of states.
The Transfer of Property Act of 1882 is another law that governs the acquisition and selling of real estate. A “sale” is defined by the Transfer of Property Act as the transfer of ownership in return for a price that has been paid in full or in part. To transfer tangible immovable property, only registered papers, as defined in the aforementioned Registration Act of 1908, may be employed. Section 55 of the Act requires the seller to notify the buyer of any substantial fault in the property or the seller’s title that neither the seller nor the buyer is informed of and that the buyer could not have found even with reasonable effort. Owing to deception, the buyer has the right to reimbursement or indemnification from the seller.
Even if the seller provides all essential information about the property and his title, the buyer should do thorough research and check the seller’s title.
Conclusion:
Buying real estate and registering it with the proper authorities might appear to be a difficult undertaking. You’ll discover that, notwithstanding its complexity, Indian real estate law is doable if you have a basic grasp of the process.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
