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Property and Real Estate Laws in India – A Complete Guide

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purchasing a property in India can be complex due to laws and regulations. this guide aims to provide a better understanding of laws if you’re buying, selling, or investing in real estate in India

Key Real Estate Laws in India

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

Real Estate (Regulation and Development) Act or RERA was introduced in 2016. under this act, developers have to register their projects with the authorities before any sales. it is also mandatory to provide detailed information about the project. this reduces the risk of delays or defaults and establishes a faster system for resolving disputes between buyers and developers. overall the purpose of RERA is to protect buyers and enhance transparency in the real estate sector.

Transfer of Property Act, 1882

The Transfer of Property Act, 1882 came into force on July 1, 1882. “Transfer of property” means conveying property to others, either now or in the future. Any kind of property, including immovable property, can be transferred unless legally restricted. Absolute restraints on disposing of property interests are generally void under the Act. Only those with an interest in the property can transfer it and pass on a valid title. Transferees acting in good faith, for consideration, and without notice of defects, are protected.

Registration Act, 1908

Registration Act was enacted in 1908. it mandates and regulates the registration of property-related documents in India to ensure transparency and prevent fraud in real estate transactions. it is important to note that unregistered documents hold no legal validity and are on the greatest risk.

The Indian Contract Act, 1872

It is the foundational legal framework governing contracts in India. It encompasses various contract types like indemnity, guarantee, bailment, and pledge. it ensures that terms and conditions are enforceable legally.

Important Considerations in Real Estate Transactions

Now we know about important laws governing property transactions in India. let’s see what are important considerations in real estate transactions.

Title Verification

It is important to research the history of the property before buying. ensure that the property’s title is clear and seller has the right to sell the property. make sure that the property don’t have any pending litigation or unpaid dues.

Sale Deed and Agreement to Sell

After all agreements are reached, your next step is Sale Deed. it is a crucial document that transfers ownership from the seller to the buyer. it must be registered at the local Sub-Registrar of Assurances office. during this process, both parties must be present, which ensures that both parties agree with the terms and conditions of the property transactions.

Stamp Duty and Registration

The next step is the payment of Stamp Duty which is mandatory for the registration of property documents. the rate stamp varies by each state and is typically percentage of the property’s market value

After all these steps the property is legally transferred to the buyer. to make sure the transfer process is complete,  buyer should apply to the local municipal authority to have the property transferred to their name. This step is crucial to establish the buyer’s ownership.

After completing these formalities, the seller will hand over possession of the property to the buyer. it ensures that the buyer has legal ownership and rights associated with it.


Understanding property and real estate laws in India is crucial for ensuring a smooth and legally sound transaction. By familiarizing yourself with key regulations, such as RERA, the Transfer of Property Act, and the Registration Act, you can navigate the real estate market with confidence. you can consult with our real estate lawyers to address specific concerns for expert legal guidance and support.

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