Real Estate Laws in India are governed by both State-specific laws and Federal 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 understand the fundamentals of Indian real estate rules and laws.
As a homebuyer, it’s important to be aware of various rules and real estate laws that govern real estate rules. Till the property is following the due procedure, the buyer does not become the legal owner of the property. Income tax laws apply when you earn a property on the sale of your property. Consequently, you will have to pay short-term or long-term capital gains tax on the profit.
List of rules in Real Estate in India:
Property Disclosures: First and more important real estate laws Sellers typically require to disclose certain information about the property’s condition. These real estate rules include known defects, previous repairs, environmental hazards, or any other factors that may affect the value or desirability of the property.
Fair Housing Laws: Fair housing laws prohibit discrimination based on race, color, religion, sex, national origin, disability, or familial status.
Contractual Obligations: When you enter into a purchase agreement or contract with a seller. It’s crucial to understand your obligations and rights.
Title and Ownership: A clear title is essential when buying a property. Title searches and insurance protect buyers from any outstanding liens, encumbrances, or ownership disputes.
Zoning and Land Use Regulations: Zoning laws and regulations govern the use of land in specific areas. It’s important to understand the zoning restrictions and any planned developments or changes that may affect the property or the surrounding neighborhood.
Homeowners Association (HOA) Rules: If the property is part of a homeowners association. There may be additional rules and regulations that govern the use of the property and common areas.
Tax Laws: Property taxes can vary based on the location and value of the property. Understand the local tax laws, exemptions, and any potential tax implications of homeownership.