Decoding the Major Real Estate Laws in India: Navigating Old and New Property Rules
Understanding the intricate web of real estate laws in India is crucial before embarking on a property purchase journey. From state to central regulations, this guide deciphers the legal landscape governing residential and commercial properties. Let's explore the key aspects to consider under both old and new property rules.
Property Laws in India: A Primer:
Real estate laws in India hold immense significance in property transactions, shaped by both state and central governments. Governed by the Property Act, immovable property encompasses land, its benefits, and permanent attachments. The Real Estate Regulatory Authority (RERA) further regulates marketing, sale, and development, ensuring consumer protection.
Indian Constitution and Land Legislation:
The Indian Constitution classifies "land" under the State List, limiting state legislations to land agreements. In contrast, contracts excluding agricultural land fall under the Concurrent List, allowing the central government to legislate. This duality results in a complex legal framework, emphasizing the need to navigate diverse real estate laws.
Key Real Estate Laws and Regulations:
1. Transfer of Property Act, 1882:
Governing the transfer of ownership for immovable assets, this central act covers various transactions, including loans, exchanges, gifts, mortgages, and leases.
2. Indian Contract Act, 1872:
Addressing contracts in India, this act manages execution, implementation, and remedies, with sections related to property transfers falling under the Transfer of Property Act.
3. Registration Act, 1908 and India Stamp Act, 1899:
Defining the registration of deeds and ensuring proper documentation, these acts facilitate the transfer of immovable property while overseeing stamp duty payments.
4. Foreign Exchange Management Act, 1999
FEMA was introduced for the non-residents of India who want to purchase land in the country. The FDI policy takes care of all the foreign investments made in the real estate sector.
5. Rehabilitation and Resettlement Act, 2013:
Regulating government land acquisitions, this act outlines procedures for compensation, rehabilitation, and resettlement, offering legal recourse for dissatisfied beneficiaries.
6. Real Estate Regulatory Authority (RERA), 2016:
Safeguarding consumer interests, RERA mandates developers to register projects, providing transparency and accountability in the marketing, sale, and development of real estate.
Conclusion:
In the realm of Indian real estate, knowledge of property laws is the cornerstone of informed decision-making. Whether contemplating a residential or commercial investment, adherence to these regulations is paramount.
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