Real estate in India is governed by a complex framework of fundamental laws and regulations at both the central and state levels. Some fundamental laws and regulations that play a significant role in governing real estate in India include:
Fundamental laws:
Real Estate (Regulation and Development) Act, 2016 (RERA): RERA is a landmark legislation that seeks to regulate the real estate sector. It aims to protect the interests of homebuyers and promote transparency and accountability in the industry. Each state and union territory in India has its own RERA authority.
The Transfer of Property Act, 1882: This law governs the transfer of immovable property in India. It contains provisions related to the sale, mortgage, lease, and exchange of property.
The Registration Act, 1908: This act requires the registration of property transactions to make them legally valid. It also provides for the establishment of a public record of property transactions.
The Indian Stamp Act, 1899: This act deals with the payment of stamp duty on various documents, including property real estate transactions. Also, the amount of stamp duty varies from state to state.
The Land Acquisition Act, 2013: This law lays down the rules and procedures for acquiring land for public purposes by the government. It includes provisions for fair compensation to landowners.
The Benami Transactions (Prohibition) Act, 1988: This act prohibits benami transactions, which involve holding property in the name of one person but benefiting another. Therefore, the 2016 amendment to this act strengthened its provisions.
The Municipal Laws: Local municipal laws and bylaws are essential for land use and development regulations within specific municipal areas. These laws vary from one municipality to another.
Basic Laws:
The Consumer Protection Act, 2019: This act provides remedies to consumers, including homebuyers, for issues related to unfair trade practices, deficiency in services, or faulty products.
Goods and Services Tax (GST): GST has impacted the real estate sector by introducing a unified tax regime for the sale of under-construction properties and the supply of construction materials and services.
Foreign Exchange Management Act (FEMA): FEMA regulations govern the purchase and sale of real estate by foreign nationals and non-resident Indians (NRIs) in India.
State-specific Laws: Each Indian state and union territory may have its own laws, rules, and regulations related to land use, land development, and real estate transactions. These can vary significantly from one region to another.
It’s important to note that the real estate sector in India is highly dynamic, laws and regulations can change or evolve over time. Therefore, it’s crucial for individuals and entities involved in real estate transactions to stay updated on the latest legal developments and seek legal advice when dealing with property-related matters.
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