The real estate industry, like any other industry, needs to be regulated and monitored so that the interests of the parties concerned are protected. The real estate laws in India are governed by both state-specific laws and central government laws. As per the constitution of India “Land” falls under the state-governed laws and “Transfer of Property and registrations of deeds and documents” falls in the concurrent list, which means both the state legislature and the parliament have a common interest in these laws. It is important for home buyers to know their rights and the basic rules and regulations to avoid surprises and blunders before it is too late.
Let us look at some of the important real estate rules and regulations that have been formulated to protect the interests of the parties involved, especially home buyers.
1. The Real Estate (Regulation and Development) Act, 2016 (RERA)
RERA governs the development, marketing, and sale of real estate projects. This act protects the interests of the consumers in the real estate sector. The act mandates compulsory registration of projects and key players in the real estate sector. It also established an adjudicating mechanism of speedy dispute redressal with the Real Estate Regulatory Authority and the Appellate Tribunal.
The consumer can access all details of any project such as land status, approvals, certificates, proposed completion date, promoter details, etc
2. Registration Act, 1908 and Indian Stamp Act, 1899
These acts govern the laws relating to the requirement of registration of various deeds, documents, and instruments that are related to the transfer of interest in the said movable property. The payment of stamp duty to the state government during the property registration process under the Indian Stamp Act is calculated as a percentage of the property value and is paid by the buyer.
3. Transfer of Property Act, 1882
The Transfer of Property Act provides general principles of movable and immovable property such as sale, and exchange, mortgage, lease, and gift of property, part performance, and lis pendens (pending legal action).
4. The Indian Contract Act 1982
The Act governs laws related to contracts in India. It includes the capacity to enter a contract, its execution, and implementation thereof, and breach and remedies available to parties thereto.
A home buying guide can give an overview of the legalities and regulations related to the real estate industry, But, it is always advisable to consult a real estate lawyer or property consultants who can guide you through the complete process of buying the property in compliance with all the rules and regulations.
