Close
In India, real estate laws are important to all transactions involving the ownership of property. Real estate laws and regulations are determined by both the central and state governments of India periodically. Real estate refers to land or buildings, whether residential or commercial.
Before buying a home, it is essential to consider several property laws and acts to ensure a smooth and legal transaction, as compliance with real estate laws is crucial for a successful property deal.
Passed by Parliament in 2016, the Real Estate (Regulation and Development) Act (RERA) went into full force on May 1st, 2017. It aims to increase real estate investments and safeguard homebuyers by promoting efficiency and openness in the buying and selling of real estate.
The Act creates the Real Estate Regulatory Authority (RERA) in every state to oversee the real estate industry and serve as a tribunal for resolving disputes quickly.
Regulatory authorities need registration for every project with a minimum land size of 500 square meters or eight apartments.
Developers who violate the orders of Appellate Tribunals and Regulatory Authorities may be imprisoned for up to three years, while agents and purchasers may be imprisoned for up to one year.
The Transfer of Property Act of 1882 addresses the rights and responsibilities of properties associated with real estate transactions, including matters concerning the protection of legitimate buyers, the legality of transfers, and the transfer of property rights.
Properties are divided into moveable and immovable categories under the Transfer of Property Act of 1882. Each has unique traits and consequences for the law. Tangible things like cars, equipment, furniture, and other personal possessions are included in the category of transportable property. Delivery can be used to complete a transfer of moveable property, and unless otherwise required by other applicable regulations, a written document is not necessarily necessary.
The term “immovable property” describes assets such as buildings, land, and any stake in land that cannot be relocated. For it to be legally binding, it has to be in writing and registered per the Registration Act of 1908.
The Contract Act constitutes a collection of regulations that govern contracts within a specific jurisdiction. A contract is generally defined as an arrangement that establishes legally binding duties between two or more parties. The Indian Contract Act of 1872 defines a contract as “An agreement which is enforceable by law” under Section 2(h).
The Indian Contract Act of 1872 defines a valid contract as one that includes several essential elements: an offer and acceptance, lawful consideration, the ability of the parties to contract, mutual consent given freely, a lawful purpose, and clear terms.
Documents are made legally binding and enforceable by the use of stamp duty. It basically serves to guarantee the legitimacy of transactions and generate income for the government.
The cost of real estate purchases can be greatly impacted by stamp duty rates, which range between Indian states. Anyone entering the real estate market needs to be aware of these rates since they have the power to make or break a deal.
Stamp duty rates are affected by several factors, such as the kind of property, the size of the transaction, and even the state’s economic state. Stamp duty on non-residential property, for instance, may vary greatly from that on residential property.
For real estate purchasers and sellers, digging into the specifics of stamp duty rates in various states can provide insightful information. States like Delhi and Maharashtra, for instance, can have various property registration fees, which would greatly affect the cost of your transaction.
Understanding the legal framework governing real estate laws and transactions in India is essential for both purchasers and sellers. Familiarity with key acts like RERA, the Transfer of Property Act, and the Indian Contract Act, along with careful attention to details such as stamp duty and registration, can help ensure a successful and legally sound real estate transaction. Always conduct thorough research and due diligence to avoid common legal pitfalls.
Also Read: Tenant Rights vs. Landlord Rights: Striking a Balance in Indian Rental Law
References:
Mr. Kshetry is dedicated to providing world-class legal services. he employ exceptionally talented lawyers with outstanding academic and personal achievements.
© Copyright Kshetry And Associates 2025. All Rights Reserved.
