New Guidelines Issued by The Government for Real Estate

It might be challenging to buy a home, especially if it's your first time doing so. Several technical requirements must be met, and the language employed is dense with legalese and jargon that just adds to the complexity. We'll break down the process and explain the basics of Indian property law so you can make informed decisions.

A mix of national and individual state regulations governs the Indian real estate market. This is because while "Transfer of property and registration of deeds and papers" is included in the Concurrent List, "Land" is mentioned in the State List of the Indian Constitution. Due to this, obtaining and registering property looks like a difficult process. Let's start with the basics of real estate laws in India.

Various Rules And Laws That Control The Real Estate Market In India.

The Indian Registration Act of 1908 and the Indian Stamp Act of 1899

Deeds, instruments, and other papers relating to the transfer of an interest in immovable property are subject to registration and stamp duty requirements under the laws governing these acts.

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

The Real Estate Act of 2016 aims to protect buyers' interests in the real estate market by investigating the construction, advertising, and sale of properties. The Act also set up a system for the quick resolution of disputes by creating the Appellate Tribunal and the Real Estate Regulatory Authority. All real estate developments fall within its purview and must be registered. Many states have passed RERA rules to ensure that the national law is carried out on the state and local levels.

The Fair Compensation and Transparency in Land Acquisition, Resettlement, and Relocation Act of 2013

When the government acquires private land for a company or particular public objectives, this Act guarantees that families and individuals will be fairly paid for their loss. It outlines, in broad strokes, how the government would compensate landowners and how they will be helped if their land is taken from them.

Transfer of Property Act, 1882

The Transfer of Property Act 1882 is a foundational statute that defines the basic procedures for transferring real estate ownership, including buying, selling, leasing, mortgaging, and gifting.

The Indian Easement Act of 1882

A person may obtain a right to use real land for a limited time under the Indian Easement Act of 1882. It examines the many scenarios in which one makes use of the property but does not legally own it.

The Indian Contract Act of 1872

The Indian Contract Act sets the rules for all aspects of contract law in the country, including who can sign, how contracts are to be carried out, what happens if they are broken, and what legal recourse is available to the parties involved. Contract-related sections and chapters of the Transfer of Property Act 1882 are incorporated herein.

Policy on Foreign Direct Investment and the Foreign Exchange Management Act of 1999

The Foreign Exchange Management Act (FEMA) and the regulations enacted thereunder govern the acquisition and disposition of immovable property in India by non-Indian corporations and individuals. Regarding real estate in India, the unified FDI Policy sets the rules for who can invest, how much, and how they can get out. The Reserve Bank of India and the Department of Industrial Policy and Promotion (DIPP) of the Government of India oversee these types of investments from outside.

Land Revenue Codes

Land revenue policies, tenancy kinds, agricultural land holding, and other related topics vary widely throughout the states. Specific legislation defines the many types of real estate within a state and the laws and consequences for transgressing those rules.

In addition to the federal and state regulations mentioned above, the real estate market in India is also subject to several regional and municipal regulations. Special Economic Zones (SEZs), land ceilings, land pooling, land zoning, and land usage are only a few of the areas where there are complexities. Others include rent control, slum rehabilitation and redevelopment, property tax, urban development, ownership of property, and more.

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What Are the Different Kinds Of Real Estate Rights?

Many different kinds of land rights are recognized in India, and they all belong to the same bigger bundle of rights that arises through the law, contracts, inheritance, and other sources.

Freehold Rights

Perfected against all others, these rights refer to ownership of land in its entirety. As a result, the owner of such an estate has complete control over the land in perpetuity and may put it to any lawful use he or she sees fit, subject to zoning and other restrictions.

License Rights

Such agreements grant the licensee a limited, non-exclusive right to enter, occupy, and utilize real property without granting the licensee any kind of ownership interest or easement in the land. These rights are rights in personam and are therefore not transferable or inheritable.

Possessions Under a Lease

During the length of the lease, the lessor or landlord (who holds legal title to the property) grants the lessee or tenant the sole right and interest to hold, possess, and use the leased property. Leasehold rights are a type of property right.

Easement Right

The Indian Easement Act states that those who have used things for a long time have an unrestricted right to them (similar to a privilege). The default rights accrue to a property owner, including the right to air or light, the right of way, the right to construct, and the right to the free and unimpeded water flow. All of these are common examples of easement rights enjoyed by property owners.

The Right to Develop

A developer must have "Development Rights" to build or otherwise alter their land within the bounds established by state or local ordinances. Transferable Development Rights are a subset of development rights that allow property owners to be compensated for transferring development potential from one parcel of land to another when that potential cannot be used on the original land parcel due to development regulations. Some states recognize TDRs governed by specific zoning ordinances and building codes. Joint development agreements with land title holders for joint development of real estate developments are one way to acquire development rights in land. These privileges arise from a legally binding agreement.

Rights of Specific Enforcement for Part Performance

In the law of contracts, specific performance is a form of equitable relief that can be obtained by petitioning the court to compel a party to do certain conduct, such as fulfilling the terms of a contract. Contractual relief, including specific performance, is not a matter of course but is awarded only if certain circumstances are met. Recent developments in contract law have narrowed the scope of judicial discretion in deciding whether to grant a specific contract performance.

Subsurface Rights

The term "subsurface rights" refers to ownership of resources located below a property's surface. Subsurface rights include mineral rights.

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Conclusion

It's not uncommon for people to be intimidated by the prospect of buying property and registering it with the proper authorities. Real estate laws in India can initially seem daunting, but with little background knowledge, you'll see that it's rather straightforward. Please visit Adani realty if you intend to invest in real estate.