Understanding Essential Real Estate Laws and Regulations!
Before purchasing real estate in India, it is essential to familiarize yourself with the current real estate laws and regulations. State and central laws govern the country’s real estate laws and regulations.
Real estate refers to anything related to land or a building, whether residential or commercial. Several real estate laws and regulations are important to consider before buying a home. Read on to learn more about what to consider before buying a home under the new property rules.
All About Real Estate Law in India
Indian real estate law plays an important role in all real estate transactions. These real estate laws and policies are defined by the state and central governments of India.
According to the Indian Constitution, immovable property is property comprising land, the benefits derived therefrom, and any object permanently fixed to the land or permanently attached to any object fixed to the land. The Real Estate Regulatory Authority (RERA) governs the marketing, sale, and development of real estate projects in India.
Because of the definition of land in the Indian Constitution, real estate law in India falls under the relevant land laws and regulations. According to the Indian Constitution, the term “land” appears in the State List of the 7th Schedule, which stipulates that the state may legislate only on land contracts. However, contracts other than those relating to agricultural land fall under the Concurrent List of the 7th Schedule, which stipulates that the central government may legislate on these matters. Consequently, there are several real estate laws in India. It is therefore advisable to review them before buying a house in India.
Real Estate Laws and Regulations in India
Below are some of the key real estate laws in India that every buyer should keep in mind before purchasing a property.
Registration Act of 1908 and Indian Stamp Act of 1899
These two acts set out the requirements for registering deeds, instruments, and documents necessary for the transfer of real estate to the interested party. They also ensure the preservation of documents necessary for the transfer of ownership and the payment of stamp duty.
Real Estate Regulatory Authority or Real Estate Regulation and Development Act, 2016 (RERA)
The Real Estate Regulatory Authority Act, 2016 governs the marketing, sale, and development of real estate projects. It protects the interests of buyers. To be valid, developers must register all their real estate properties in accordance with this law. Therefore, individual states have created their own RERA authorities to oversee the implementation of this law.
Transfer of Property Act, 1882
The Transfer of Property Act is a fundamental law concerning the ownership of immovable property such as land, in the form of loans, exchanges, gifts, mortgages, leases, etc. Any property sold by a seller and purchased by a buyer is governed by this law.
Indian Contract Act, 1872
This law governs contracts in India. It also deals with their execution, enforcement, remedies, and termination. The sections of the Transfer of Property Act are an integral part of the Indian Contract Act.
Foreign Exchange Management Act, 1999
FEMA was introduced for non-resident Indians wishing to acquire land in India. This FDI policy covers all foreign investments made in the real estate sector.
Can an NRI purchase residential property in India?
Purchasing residential property may be subject to certain restrictions. Three categories of individuals reside outside India:
Non-Resident Indians
Foreigners of Indian Origin
Foreigners of Non-Indian Origin
Non-resident Indians and foreign nationals of Indian origin are permitted to own any residential property in India they inherit. Non-Indian foreign nationals are not permitted to acquire residential property. All these laws apply to both residential and commercial real estate, as no foreign company can acquire land in India itself.
Buying a home in India is easy if you know all the property and real estate laws in force. To find good residential properties, you can contact CashbackBro. This platform offers various properties in different Indian cities for real estate investment. Visit the CashbackBro website to learn more about real estate laws and other key points to consider when buying a home.
