When it comes to purchasing a property, it becomes essential to understand a set of laws. This task might seem a bit difficult for a regular homebuyer. Real estate has various aspects which include – sale, lease, license, mortgage etc. It is important to do a title check as well before investing in a property or purchasing one.
RERA (Real Estate Regulatory Authority) Act, 2016, has brought about a revolutionary change in the real estate sector.
Even after a lot of formalities, the terms and conditions of real estate lease and sale-purchase were always in the favour of the builder. Hence, the need for a revised set of rules and regulations was due. That is when RERA came into place.
These are the major real estate acts
- RERA (Real Estate Regulatory Authority) Act, 2016
- Stamp duty has to be paid as per state requirements
- The Transfer of Property Act, 1882
- For Non-Resident Indians (NRIs) FEMA( Foreign Exchange Management Act, 1999) also apply.
- The Registration Act, 1908.
- Investors have to abide by local laws and bylaws.
- The specific relief Act, 1963
- Land Acquisition Act, 2013
- Clearance as per environmental laws have to be taken before starting with any project for the construction of an immovable property.
- Other labor laws including regulating minimum wages and safety insurance provisions.
Provisions under RERA
- Under RERA, it is compulsory for the builders to register the land. The registration of land can be exempted only when the area of the land is too small.
- Due to this act, the possession of the property is given on time to the purchaser. If the builder delays the possession, he has to provide a penalty to the customer.
- There are separate real estate courts for property disputes. The district courts do not have any jurisdiction for such disputes.
The laws that govern real estate have a wide scope and it is essential to focus on legal compliance if a person is in the real estate industry. Due to the enactment of RERA, the real estate industry has been regularised which has proven to be helpful for homebuyers and builders as well. The risk for investors is reduced because of better regulation. They can freely invest in real estate which makes it a win-win situation for investors, customers, and builders.
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