State-specific legislation and federal laws both apply to India's real estate laws. This is so because "Land" is listed under the State List of the Indian Constitution, whilst "Transfer of property and registration of deeds and documents" is listed under the Concurrent List. This makes the procedure for purchasing and registering property seem complex. Let's first comprehend the fundamentals of Indian real estate legislation. Share your thoughts with us on the Real Estate Submit Guest Post category.
Real Estate Regulation and Development Act
It has been put in place to protect the interests of consumers in the real estate sector by creating the Real Estate Regulatory Authority ("RERA") to regulate the industry and ensure the sale of plots, apartments, and buildings in a transparent and efficient manner by making it necessary for all pending and future real estate projects with land area over 500 square metres and number of apartments over 8 to register with the RERA; requiring the promoters to make material disclosures on registration and in conveyances executed with allottees of real estate projects; establishing deadlines for project completion and the delivery of possession; and prohibiting the acceptance of any advance or deposit by the promoters of more than 10% of the total consideration without an agreement.
Transfer of Property Act
The Transfer of Property Act defines a "sale" as the transfer of ownership in exchange for a price that has been paid in whole or that has been partially paid. Only registered documents, as listed in the aforementioned Registration Act, 1908, may be used to transfer tangible immovable property. According to Section 55 of the Act, the seller is required to inform the buyer of any serious flaw in the property or the seller's title that neither the seller nor the buyer is aware of and that the buyer could not have discovered even with reasonable diligence. The buyer has the right to compensation or indemnity from the seller due to misrepresentation. The buyer should undertake due diligence and investigate the seller's title even though the seller gives all relevant information regarding the property and his title. That was a quick overview of India's real estate laws. Let's now discuss the paperwork a buyer should review before buying a property.
Proof of Ownership
Except in a few specific circumstances, every transaction involving the transfer of an interest in real property must be in writing and registered with the "Sub-Registrar of Assurances" office. It is not admissible as evidence in civil proceedings for a document of transfer of interest in immovable property that is compulsorily registrable but has not been registered. The public shall be regarded to have been informed of the immovable property transactions that have been carried out as a result of the registration of relevant instruments. The majority of property holdings have undergone a government survey, been given a revenue survey number, and been granted a "Record of Right" (in the case of agricultural lands in Maharashtra) or "Property Register Card" (in the case of non-agricultural properties in Maharashtra) or something similar.