Real Estate Laws In India
India’s large landscape and huge land area covering distance area of 3,287,263 km has always attracted large scale real estatedevelopment and the economic boon, the rise of disposal income,rise of nuclear families and the rise of tier II and III cities and towns have paved the way for further growth in the real estate industry. Arecent survey from leadingmagazine has declared
India has become popular destination for real estate development.These circumstances coupled with the opening up of real estate market to FDI or Foreign Direct Investment in 2005 has led to an increasingly growing interest of the investor in the real estate market. However, the investor is often faced with the serious issue of lack of clarity on thepractices that are prevalent in this highly unorganised sector.
Laws and Policies of a country at the same time play highly significant role in shaping the action of the investors who are investing or wish to wish to invest in the real estate market and we aim to describe and give a crystal clear view of the norms, practices and policies that govern the real estate sector and which thereby can help an Indian investor or a foreign investor who wish to invest in India.
Real estate law is part of the civil law that deals with rights of possession, utility and enjoyment of the land and other permanent structures that are attached to the same. This law is derived from the English Common Law. As per the common law, real property referred to the property that has resulted due to the real action of any person.
Under the ambit of this law, relationship between various owners, community and owners, tenants and landlord, transfer in the interest of the property, mortgages and deeds related to the real property are included. The federal and state law governs the transaction that is the sale, purchase and lease of real estates. Defining real estate The law might vary based on the state that you reside. This arena of law is an extensive one and different aspects of the law overlaps with the contract law.
Different terms as real estate, real property and realty that are used in different transaction that are part of the law are often interchangeable. Often people tend to associate this law with buildings and structures, but in reality the term refers to the land and other immovable structures as trees, building, houses and minerals that are attached with the same. Provide detailed legal documents The interest and benefits that are associated with the real property, the right to reside in the property, drill the ground, right to inhale the air adjacent to the property in a specific timeframe are also under the ambit of this law. If you are claiming or contesting for any property, then you have to provide legal documents regarding the same. It is important for this document to be verified and these generally provide description of the boundaries of the property.
The Central Acts, the local municipal laws of each state and union territory and the recently issued consolidated FDI Policy 2010 are some of the norms that govern the various transactions and practices in the Real Estate.Sale, lease, mortgage, licence are some of the transactions that are governed by the below mentioned laws and policies.
The various laws governing the real estate transactions have been abridged as
follows:
o The Indian Contract Act, 1872.
o The Transfer of Property Act, 1882.
o The Indian Registration Act, 1908.
o The Specific Relief Act, 1963.
o The Urban Land (Ceiling & regularization) Act, 1976.(Now Repealed)
o The Land Acquisition Act, 1894.
o The Indian Evidence Act, 1872.
o The Indian Stamps Act, 1899.
o The Rent Control Act.
o The State Laws governing the real estate.
o The Consumer Protection Act, 1986
o The Arbitration & Conciliation Act, 1996
o Income Tax Act, 1961.
o The Wealth Tax Act, 1957
o The Co-operative Societies Act, 1912
o The Multi-state Co-operative Societies Act, 2002
Then there are development Plans & rules for every major cities.
All the Laws, rules & regulations are capable of generating various types of litigation & disputes, either with the Government or conflicting parties.
We endeavor to provide solutions to any or all the disputes.
