The real estate sector in India is booming and for good reason! The market is ripe with opportunity and many exciting investment possibilities. However, it’s important to understand the RERA rules and regulations that govern this industry before investing in it. This blog post will discuss the key aspects of Indian real estate law. So, anyone who is thinking about investing in Indian real estate, read on!
RERA Act
The Real Estate (Regulation and Development) Act, 2016 was introduced to protect buyers’ rights and boost investments in the real estate sector. The act came into effect in May 2017. As per RERA guidelines, all real estate projects that are ongoing or yet to be launched must be registered under RERA. Once a project is registered, the builder has to upload and update all details related to the project on RERA’s website.
This includes information like the layout plan, land status, completion schedule, and details of promoters and architects, among others.
Significant laws regulating real estate in India
The Indian Easement Act, 1882:
This Act provides for the legal rights of way and other easements.
The Indian Registration Act, 1908:
The act governs the registration of title deeds and documents relating to immovable property.
The Transfer of Property Act, 1882:
The law regulates the transfer of ownership of immovable property in India.
The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation, and Resettlement Act, 2013 :
This law provides just compensation to landowners whose land is acquired by the government for public purposes.
The National Building Code of India, 2005:
The code sets minimum standards for the design and construction of buildings in India.
The Indian Contract Act, 1872:
The law regulates the formation and performance of contracts in India.
The Foreign Exchange Management Act, 1999:
The law regulates the inflow and outflow of foreign exchange in India.
The Indian Stamp Act, 1899:
The Indian Stamp Act, 1899, is India’s primary legislation governing stamp duty. The Act levies stamp duty on instruments of transfer of immovable property.
Land Revenue Code:
The Land Revenue Code is India’s primary legislation governing land revenue. It contains provisions for the assessment and collection of land revenue and the administration of land records.
Documents to Consider When Buying a Home
To buy a home in India, be sure to keep the following documents handy:
An Occupancy Certificate
The first document one should check for is an occupancy certificate, also called an OC. This document is issued by the local municipality and indicates that the building is ready for occupation. The certificate includes information about the property, such as its location, dimensions, and construction details.
Completion/Occupancy Certificate
The builder must obtain a completion or occupancy certificate from the concerned authority. The certificate proves that the building has been constructed per the sanctioned plan and is safe.
Building Plan
It is advisable to have a building plan ready before buying a piece of land or starting construction. This will indicate the plan of the property, the area of the property, etc. This will help to understand the estimated construction cost and avoid legal hassles later. RERA laws mandate that all real estate agents and developers register their projects with the authorities.
No objection certificates
The builder may have to obtain a NOC from various agencies depending on the type/location of the property before starting the construction of any building. The purpose of this document is to ensure that the proposed construction project does not violate existing laws or regulations.
The Bottom Line
Overall, the real estate laws in India are designed to protect the rights of buyers and sellers, as well as ensure that transactions are conducted fairly. These laws provide a framework for how property can be bought, sold, and leased and lay out the rules for what happens if there is a dispute. While they may seem complex at first glance, understanding them can help make buying or selling property in India much smoother.
Disclaimer- This article is based on the information publicly available for general use. We do not claim any responsibility regarding the genuineness of the same. The information provided herein does not, and is not intended to, constitute legal advice; instead, it is for general informational purposes only. We expressly disclaim any liability, which may arise due to any decision taken by any person/s basis the article hereof. Readers should obtain separate advice with respect to any particular information provided herein.
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