Investing in real estate for the first time can seem a very daunting task for several reasons. It involves a complex set of laws to govern real estate. These laws are necessary for the smooth functioning of constructions and sale and purchase of property. To understand real estate laws, a homebuyer prefers seeking assistance of a legal expert in carrying out the property purchase. In this article, we have composed a list of five important real estate laws that every home buyer in India should be aware of.
The Transfer of Property Act, 1882
The Transfer of Property Act came into force on 1 July 1882. According to the Act, 'transfer of property' means an act by which a person conveys the property to one or more persons, or himself and one or more other persons. The act of transfer can be done in either present or in future. When an immovable property is transferred from a living person to another living person(s), the Transfer of Property Act, 1882 comes into play.
The Registration Act, 1908
Property or land registration is government in India under Section 17 of the Indian Registration Act, 1908. As per Section 17 of the Registration Act, 1908, to become a lawful owner of your property, it is mandatory to register documents in relation to transfer, sale or lease of a property. The objective of Registration Act is elaborately discussed by the Hon’ble Supreme Court in case of Suraj Lamp and Industries Pvt. Ltd. versus State of Haryana and Another AIR 2012 SC 206, as under:
“The Registration Act, 1908, was enacted with the intention of providing orderliness, discipline and public notice in regard to transactions relating to immovable property and protection from fraud and forgery of documents of transfer.”
RERA (Real Estate Regulatory Authority) Act, 2016
With a view to regulating real estate industry under one regime, and aim to establish the Real Estate Regulatory Authority (RERA) for regulation and promotion of the real estate sector and to bring transparency in the Real Estate transactions, the RERA or Real Estate (Regulation and Development) Act, 2016 was enacted. The bill of this Parliament of India Act was passed by the Rajya Sabha on 10 March 2016 and by the Lok Sabha on 15 March 2016. The RERA Act was effective on and from 1 May 2016. During this time, Out of 92 sections, 59 were notified. All the other provisions came into force on 1 May 2017.
Foreign Exchange Management Act, 1999, (FEMA)
The Government of India formulated FEMA or Foreign Exchange Management Act in the year of 1999 to replace the Foreign Exchange Regulation Act (FERA) of 1973. The objective of the Foreign Exchange Management Act, 1999, (FEMA) is to “facilitate external trade and payments” and “promote orderly development and maintenance of foreign exchange market in India”. Another important objective of the is to revise and unite all the laws that relate to foreign exchange. Foreign Exchange Management Act (FEMA) is applicable to all parts of India.
Draft Model Tenancy Act 2019
The ministry of housing and urban affairs recently came out with the draft Model Tenancy Act 2019. The draft act is not only aims to promote rental housing segment across the country but also introduce new rental laws in the best interest of the landlords and the tenants.