Real estate

    Real estate laws in India are indeed governed by a combination of State-specific laws and Federal laws. The Constitution of India divides legislative powers between the central government (Union) and individual states. In the context of real estate, “Land” falls under the State List, while “Transfer of property and registration of deeds and documents” falls under the Concurrent List.

Constitutional Framework

State-Specific Laws

Transfer of Property Act, 1882

Registration Act, 1908

Real Estate (Regulation and Development) Act, 2016 (RERA)

Stamp Duty Laws

Urban Land (Ceiling and Regulation) Act, 1976

Municipal and Local Laws

Consumer Protection Laws

Foreign Exchange Management Act (FEMA)

1. Constitutional Framework

    The distribution of legislative powers between the center and states is defined in the Seventh Schedule of the Indian Constitution.The Union List includes subjects on which only the central government can legislate.The State List consists of subjects on which only the state governments can legislate. Entry 18 of the State List specifically mentions “Land.”

2. State-Specific Laws

    State-specific laws in India refer to the legal provisions, regulations, and statutes that are enacted and enforced at the individual state level, governing various aspects of land and real estate. These laws are distinct to each state and union territory, allowing them to address specific regional needs, concerns, and priorities. 

3. Transfer of Property Act, 1882

    The Transfer of Property Act, 1882, is a central legislation in India that establishes the legal framework governing the transfer of property. Enacted during British rule, this law continues to be a significant statute in the realm of property transactions. The primary purpose of the Transfer of Property Act is to prescribe the general principles and rules concerning the transfer of various interests in immovable property.

4. Registration Act, 1908

    The Registration Act, 1908, is a central legislation in India that governs the registration of various documents, including those related to the transfer of immovable property. Enacted during the British colonial period, this law serves as a crucial mechanism for authenticating and recording important transactions.The Act applies to a wide range of documents, including deeds of sale, mortgage, lease, and gift, which involve the transfer of immovable property.

5. Real Estate (Regulation and Development) Act, 2016 (RERA)

    RERA is a central statute enacted to regulate and promote transparency in the real estate industry in India. Enforced from May 1, 2017, the primary objectives of RERA are to protect the interests of homebuyers, establish accountability and fairness in real estate transactions, and create a more organized and efficient real estate market. 

6. Stamp Duty Laws

    Stamp duty laws refer to the legal provisions and regulations related to the imposition and collection of stamp duty on various instruments, including property transactions. The term “stamp duty” is associated with the payment of a tax on specified documents or instruments to make them legally valid and enforceable

7. Urban Land (Ceiling and Regulation) Act, 1976

    The Urban Land (Ceiling and Regulation) Act, 1976, was a central legislation in India enacted with the objective of preventing the concentration of urban land in the hands of a few individuals and promoting more equitable distribution. The Act empowered the government to acquire excess vacant land in urban agglomerations.

8. Municipal and Local Laws

    Municipal and local laws refer to the legal provisions and regulations established by municipal corporations, local governing bodies, or panchayats at the city, town, or village level.Municipal and local laws encompass the legal framework established by local governing bodies to regulate and administer the affairs of a specific municipality, town, or local area. These laws are distinct from broader state or national laws, as they are tailored to address the unique needs and characteristics of the local community.

9. Consumer Protection Laws

    Consumer protection laws are legal frameworks established at both the national and state levels to safeguard the rights and interests of consumers in various transactions, including those related to real estate. These laws aim to protect consumers from unfair practices, ensure the provision of accurate information, and maintain the quality and safety of goods and services.

10. Foreign Exchange Management Act (FEMA)

    The Foreign Exchange Management Act (FEMA) is a central legislation in India that regulates foreign exchange and payments. Enacted in 1999, FEMA replaced the Foreign Exchange Regulation Act (FERA) and aimed to simplify and liberalize foreign exchange transactions. The Foreign Exchange Management Act (FEMA) is a comprehensive legal framework in India that governs foreign exchange transactions, including the acquisition and transfer of immovable property by non-resident Indians (NRIs) and foreign nationals.