Real estate means the development of land and construction
in relation to
immovable property. Some key aspects of real estate include- lease, sale,
license, mortgage, title check etc., relating to immovable property.
In India, it is a combination of Federal and State-specific laws which is
governed according to Article 246 of the Constitution of India, Transfer of
Property except for the agricultural land, registration of deeds and documents
and Contracts fall under the Concurrent List of the Constitution of India, which
give power to Centre and States to legislate them.
Laws and legislations
The Real Estate (Regulation and Development) Act, 2016 (RERA)
- This Act is the most important act for real estate. It facilitates the
development, sales activity of real estate projects to safeguard the
interests of consumers in this sector. It addresses speedy dispute redressal.
- Real Estate Regulatory established an adjudicating mechanism and the
Appellate Tribunal conducts compulsory registration of projects and key
players in real estate sectors. RERA Rules and regulations have also been
adopted and implemented by the States to ensure the effective role of the
Central Act at the local level.
- These are three tiers of laws and regulations that apply to this sector
namely, Union territory laws, state laws and municipal laws. Specific laws
as per the requirement of a particular state or area are necessary as India
is a vast country.
Transfer of Property Act, 1882 and Indian Easement Act, 1882:
These Acts provides general principles of movable and immovable property, such
as sale, exchange, mortgage, lease etc.
Some more Acts include:
Registration Act, 1908 and Indian Stamp Act, 1899, The Indian Contract Act,
1872, the Transfer of Property Act, 1882 etc.
Real Estate Jurisdiction in International Arenas In India
The Foreign Exchange Management Act, 1999 and the Foreign Exchange Management
Regulations, 2000 facilitates the sale and purchase of immovable property in
India by foreign entities .
A foreign corporate having a branch office in India is allowed to acquire
immovable property in India.
Foreign direct investment is not allowed in Real Estate Business
with immovable property and land, focusing on earning profit from such business.
It expands the role of private developers as well. Foreign direct investment is
allowed in construction and development projects under the Automatic Route, and
the government has also deleted the exit norms for foreign investors in this
Zoning and land pooling, ventures in real estate laws
The authorities have named different areas through zoning
, based on land use.
In land pooling, the government provides compensation to the landowners in the
form of a piece of land, It is an effective way of incorporating farmers as land
partners of development projects.
An investor invests in various units of a real estate investment trust (REIT),
which is registered with the Securities and Exchange Board of India (SEBI). The
lease term for commercial leases varies between 5 to 9 years and for residential
leases between 2 to 3 years.
The Real Estate Laws are interpreted by the Judiciary to provide a pathway for
homebuyers in obtaining possession of their homes for which they invest their
incomes. Hence, the laws and the entire process of real estate is one of the
most vital for financial as well as individual benefit.
- Article 246, The Constitution of India
- Constitution of India, available at https://www.india.gov.in/my-government/constitution-india/amendments/
- The Real Estate (Regulation and Development) Act, 2016, available at,
- Llerena Guiu , Landscapes of Accumulation: Real Estate and the
Neoliberal Imagination, available at,
- Business Today, What is Land Pooling, available at,https://www.businesstoday.in/current/economy-politics/land-pooling-delhi-houses-cheaper-dwarka-dda/story/252534.html.
- Indian Law Partners, Real Estate Laws In India , available at, https://www.legallyindia.com/home/real-estate-laws-in-india-20170723-8675
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