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Real Estate Laws and its working in India.

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)

  1. 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.
  2. 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.
  3. 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 that works 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 sector.

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.

  1. Article 246, The Constitution of India
  2. Constitution of India, available at constitution-India-forty-second-amendment-act-1976 
  3. The Real Estate (Regulation and Development) Act, 2016, available at, 
  4. Llerena Guiu , Landscapes of Accumulation: Real Estate and the Neoliberal Imagination, available at, 
  5. Business Today, What is Land Pooling, available at,
  6. Indian Law Partners, Real Estate Laws In India , available at,

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