Buying a new home could be challenging, especially in the case of first-time buyers. A number of intricate stages are required to be completed, as well as the terminology employed is filled with legalese and jargon, further adding on to the confusion. Let us first discuss the procedure as well as a straightforward explanation of the Indian real estate regulations.
Real estate is a vast subject in India, which may create a lot of confusion for the newcomers. Therefore it is advised to employ the assistance of an experienced realty lawyer or a commercial real estate lawyer near you.
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Law Of Registering Any Property In India
The Indian Registration Act provides for the law of registration of documents. This law provides for the registration of all properties purchased in India, so as to ensure safeguarding the evidence, prevent fraud and assure ownership. According to Section 17 of the Act, all realty transactions, which exceed the amount of Rs.100 have to be registered. Also, gifts in the form of property and all lease agreements for a period of over 12 months must be registered. In order to understand the law in a better way, it is better to seek legal assistance from an experienced commercial lease lawyer or real estate law attorney.
Procedure And Documentation Required for Registration
All documents which are supposed to be registered are required to be submitted to the Sub-Registrar of Assurances, which depends upon the place where the property is located. Also signatures of two witnesses who should be present, as well as the signatures of the buyer and seller in order to register the property. The witnesses mentioned before, along with the buyer and seller must have proof of identity, in order for the documentation to be accepted. This may include PAN card, Aadhaar Card, Driving Licence, etc.
All required documents including the receipt of stamp duty and the property card are required to be handed over to the sub registrar. After the verification process has been concluded, the sub-registrar would decide on whether or not such a document could be registered.
Time Limit And Fees to be Paid
The documents required must be presented to the sub-registrar within a period of four months of execution, as well as the requisite fee. A condonation of delay could be applied for if there is a delay in presenting the documents. This shall be done within the upcoming four months. Failing to register your property shall put you in serious risk, as you would have no evidence to present in the court of law in case of any dispute.
State-Level Legislation
Though the rules provided under the real estate Act are centralised, every state has the authority to make its own set of rules. States also have their own regulatory authorities and could modify the centralised laws. But, at present only 13 states have their own respective laws.
Real Estate Disputes
In the event of a dispute, individuals buying homes can now go to special real estate courts which have been set up in every state. This step has been taken to speed up the redressal procedure and has proven to be successful over the last few years.
Penalties in Case of Delayed Projects
Any delay which has occurred in the housing projects by the builder would be penalised by fine. The builder of such a building would either have to refund the entire amount to the homebuyer or would have to pay interest to the home buyer until the said property has been delivered. The interest rate, in such cases, would be 2% higher than what is charged by the State Bank of India, on the total amount which has been paid by the investor.
How are real estate properties distinguished by the government of India?
Areas of land have been usually divided into various sectors on the basis of the land usage. Some of these main zones are commercial zones, residential zones, industrial zones, etc. There are special zones as well such as Special Economic Zones (SEZs), etc.
What are RERA’s main objectives?
RERA is the short name for Real Estate Regulatory Authority, which has been introduced with the introduction of the Real Estate (Regulation and Development) Act, 2016, which had the objective to bring transparency to the real estate industry and address the existing discrepancies and issues related to it.
Some of the main objectives of RERA have been mentioned below:
- Regulating the realty sector as well as promoting a safe market for buying and selling real estate.
- To ensure that the market is more transparent, therefore making it safer for investors to invest in the real estate
- To ensure protection to the interests of the consumer
- To establish an authoritative body so as to speed up any disputes which may arise
As could be deduced from the above discussion, real estate law in India is quite extensive and it is not possible for a common person to have entire practical knowledge of the whole procedure as well as the documents related. Hence, it is advised that it would be favourable for such a person to secure professional assistance from a real estate attorney or a commercial real estate lawyer.
Lead India offers you a team of experienced advocates who have years long experience in dealing with cases related to real estate issues. Hence, if you wish to talk to a lawyer or seek free legal advice online, you may contact us.
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