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Real Estate laws: That you need to know

Real Estate laws: That you need to know

In our Constitution, while ‘Land’ falls under the State List, ‘Transfer of property and registration of deeds and documents’ falls under the Concurrent List. Hence, in India, Real Estate Laws are governed by both State-specific laws and Federal laws. 

The process of buying and registering a property may seem perplexing. You need not worry we are here to help you know the real estate law in India better.

1. The Real Estate (Regulation and Development) Act, 2016

The purchase of property in India falls under the Real Estate Regulatory Authority or RERA that governs the development, marketing, and sale of real estate projects to protect the interests of the consumers in the real estate sector. Act established an adjudicating mechanism for speedy dispute redressal Vide the Real estate Regulatory Authority and the Appellate Tribunal. It mandates compulsory registration of projects and key players in the real estate sector. RERA Rules and regulations ensure effective enactment of the central Act at a local level.

2. The Indian Stamp Act, 1899

The Act governs the payment of stamp duty relating to land. It forms a vital component of costs involved in property registration and is to be paid to the state governments by the buyer. Since it is collected by the state government, the rates vary from state to state. In most states, stamp duty is paid in terms of a percentage of the total transaction value

3. The Transfer of Property Act, 1882

This Act is central and provides general Principles of movable and immovable property, such as sale, exchange, mortgage, lease and gift of property, part performance, and lis pendens. However, the States must adopt the provisions of this Act. As per the Transfer of Property Act, a ‘sale’ is the transfer of ownership in exchange for a price paid or promised or a price part-paid and part-promised. In the case of tangible immovable property, the transfer can only be made by registered documents, as enumerated in the Registration Act, 1908 mentioned above. Under Section 55 of the Act, the seller must disclose to the buyer any material defect in the property or in the seller’s title of which the seller is, and the buyer is not aware and which the buyer could not, with reasonable care, discover. Misrepresentation gives the buyer the right to compensation or indemnity from the seller. Though the seller discloses all information about the property and his title, the buyer should exercise due diligence and check the title of the seller.

4. Indian Easement Act,1882

An Act to define and amend the law relating to Easements and Licenses. Easement, as defined under Section 4 of the Act, is a right enjoyed by the owner of the dominant heritage over the heritage of the servient owner for the beneficial enjoyment of his land.

The word ‘land’ refers to everything permanently attached to the earth and the words ‘beneficial enjoyment’ denotes convenience, advantage, or any amenity or any necessity. The owner or occupier referred to in the provision is known as the Dominant Owner and the land for the benefit of which the easementary right exists is called Dominant Heritage. Whereas the owner upon whose land the liability is imposed is known as the Serviant Owner and the land on which such liability is imposed to do or prevent something, is known as the Servient Heritage.

5. The Indian Contract Act,1872

This Act governs law related to contracts in India including the capacity to enter into a contract, execution, and implementation thereof and breach and remedies available to the parties thereto. The chapter and sections of the Transfer of Property Act,1882 relating to contracts shall be taken as part of the Indian Contract Act, 1872.

6. Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013

This Act governs the acquisition of private lands by the Government for certain public purposes or for a company and the compensation and rehabilitative measures to be undertaken thereto by the Government.

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