Government Advisory Guidelines for the Real Estate Sector

Both central and state regulations govern the real estate market in India. According to the Indian Constitution, the transfer of property and registration of deeds and papers is under the Concurrent List, whereas land is part of the State List. Due to this, buying and registering a property may appear to be a difficult process. Let's start with the basics of India's real estate law.

Significant regulations governing real estate in India

Indian Stamp Act, 1899 and Registration Act, 1908

Deeds, instruments, and other papers used to transfer an interest in immovable property must be registered under regulations governing the registration of such transfers and the payment of stamp duty.

Real Estate (Regulation and Development) Act, 2016 (RERA)

To ensure that buyers' interests are protected while making real estate investments, the Real Estate Act of 2016 examines the construction, advertising, and sale of properties. The statute also established the Real Estate Regulatory Authority and the Appellate Tribunal as a means of swiftly resolving disputes. Property development initiatives are within its purview and must be registered. To ensure that federal law is followed throughout the country, many states have passed RERA laws.

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

With this law in place, families and individuals may be assured that they will be fairly paid if their land is taken by the government for use by a corporation or for other public purposes. It outlines, in general terms, the compensation and rehabilitation steps the government must take in the event of property or land acquisition.

Transfer of Property Act, 1882

The Transfer of Property Act 1882 is a foundational statute that establishes the rules governing the transfer of ownership of real estate and other immovable assets through means such as purchase, sale, lease, mortgage, and gift.

Indian Easement Act, 1882

The Indian Easement Act of 1882 grants the occupant of a property the right to use that property for a certain time. It examines the many scenarios in which one makes use of the property but does not legally own it.

Indian Contract Act, 1872

This act establishes the legal framework for contracts in India, including the requirements for parties to be of legal age to sign an agreement, the procedures for doing so, the consequences of breaking the agreement, and the options for redress in the event of a dispute. The act includes the parts and chapters from the Transfer of Property Act of 1882.

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Land Revenue Codes

Land revenue laws, tenancy kinds, agricultural land ownership, and other related topics are regulated by several state land revenue rules across the country. Immovable property in a state is classified, transferred, and regulated according to the rules and penalties outlined in the defined law.

Numerous more laws, customs, and regulations from various Indian states and municipalities also apply to the real estate market. Special Economic Zones (SEZs), land pooling, land ceilings, land zoning, and land usage are only a few examples of the many complexities involved in slum rehabilitation and redevelopment.

Regulations for real estate investment trusts (REITs) in India

In 2008, SEBI first proposed laws for REITs as a concept, but they were never officially approved. Later, on 26th September 2014, SEBI released SEBI (Real Estate Investment Trusts) Regulations, 2014, which established the rules regulating REITs in India following years of proposals, public comments, and engagement with stakeholders.

As a trust, an REIT is formed in line with the Indian Trusts Act 1882, and its sponsor applies to SEBI for a certificate of authorization to conduct business in the REIT in the manner required by Schedule I of the Regulations. An REIT's Sponsor, Manager, and Trustee must meet certain criteria laid down in Regulation 4, as well as the REIT's eligibility requirements for a certificate.

How does the government ensure that low-income families have access to homes?

Several initiatives by the government are facilitating the construction of new homes for the economically disadvantaged. Following are some of those measures:

• Permitted affordable housing to be classified as infrastructure, which opens the door for affordable housing developers to access a wider range of funding sources such as external commercial borrowings (ECB), foreign venture capital investors (FVCI), and foreign portfolio investors (FPIs).
• Previously expected to be completed in three years, affordable housing developments now have a target completion time of five years.
• Developers are permitted a grace period of one year to pay tax on the notional rental revenue of unsold finished units.
• Previously, the affordable housing market allowed for a three-year lease, but this has been shortened to two years.
• Modified the Affordable Housing Eligibility Criteria to Include Carpet Area
• National Housing Bank (NHB) enhanced the refinancing facility for individual loans to finance low-cost homes.

=> Read Also:- How RERA Empowers Homebuyers in India

Conclusion

The real estate budget is part of the government's plan to end homelessness in India by building affordable homes for everyone who needs one. The government has backed an affordable housing programme with infrastructural improvements and funding support. As a result, the Indian government is doing everything it can to encourage the development of cheap homes.

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