Understanding real estate laws and regulation in India

In India, several rules and regulations control the Real estate industry. These laws may vary across the state. Some important laws governing the real estate industry includes the Real Estate (Regulation and Development) Act 2016 (RERA), the Transfer of Property Act of 1882 and the Registration Act of 1908. Basic knowledge of these laws and their implementation can help realtors and clients.

1. Transfer of Property Act 1882: The law regulates property transfer, including by way of sale, mortgage, lease, exchange, gift and transfer of actionable claims.
2. The Act administering the possession of flats
3. Real Estate (Regulation and Development) Act 2016 (RERA): The law has been introduced to protect the interests of consumers. The law works by establishing the Real Estate Regulatory Authority to regulate the industry and mandating material disclosures by the promoters on registration and in conveyances executed with allottees of real estate projects, prescribing timelines for project completion and delivery of goods, and mandating the registration of all pending and future real estate projects with land area over 500 square meters and number of apartments over 8 with the RERA will ensure the sale of plots, apartments, and buildings transparently and efficiently.
4. Co- operative Societies Act applicable to relevant states: These laws provide registration of co-operative societies, the rights and liabilities of its members, the management of societies and settlement of disputes.
5. Rent Control Act applicable to relevant states: This law provides for the fixing of standard rent and permitted increases.
6. Indian Stamp Act 1889, and the relevant State Stamp Acts: According to this law, stamp duties must be paid to the government on a variety of documents, such as agreements for sales, conveyances, and reconveyances, as well as agreements relating to the deposit of title deeds, gifts, leases, lease surrenders, leave and licence agreements, mortgage deeds, powers of attorney, releases, etc. It also outlines the penalties for non-payment or underpayment.
7. Registration Act 1908: This law outlines the requirements for mandatory registration of specific papers, the registration process, and the penalties for non-registration.
8. Land Revenue Codes: They regulate ownership of land and conditions of subsidy of Government owned lands.
9. Regional and Town Planning and Municipal Act: These acts regulate the land usage, construction and conversion.
10. Indian Easement Act 1882: This act provides general principles of properties which are movable and immovable, such as sale, exchange, lease etc.
11. Zoning and Land Pooling, ventures in real estate law: Based on land use, the officials have given various regions distinct names through zoning. Land pooling is an efficient method of including farms as land partners in development initiatives because the government pays the landowners in the shape of a portion of land. A real estate investment trust (REIT), which is listed with the Securities and Exchange Board of India, is one of the options available to investors. (SEBI). Residential contract terms range from 2 to 3 years, while business lease terms range from 5 to 9 years.
12. Indian Contract Act 1872: This act governs the laws regarding contracts in India.

In addition to the laws listed above, numerous state, local, or city laws, traditions, and policies also apply to the real estate industry in India. These give an outline of the laws that are present in India.