Standard real estate rules and regulations in India

Posted on: 2022-09-19
Standard real estate rules and regulations in IndiaStandard real estate rules and regulations in India

Indian real estate law is feasible despite its complexity, provided you have a basic grasp of the process.

The Indian Stamp Act of 1899 governs the payment of stamp duty on real estate.

Buying a home or house may be tricky, especially for first-time buyers. There are several technical procedures to fulfill, and the language used is riddled with legalese and jargon, further complicating matters. Let us demystify the process and give a simple resolution of Indian real estate rules.

Both state-specific and national rules apply to India's real estate business. This is because "Land" is specified in the Indian Constitution's State List, whilst "Transfer of property and registration of deeds and documents" is contained in the Concurrent List. As a result, the process of acquiring and registering property seems to be complicated. Let us first understand the principles of Indian real estate law.

RERA governs property acquisitions in India: The Real Estate (Regulation and Development) Act, 2016, and the institution established under it, the Real Estate Regulatory Authority, or RERA, controls the establishment, marketing, and sale of real estate projects. It was established to protect the rights of purchasers in the real estate industry. It formed the Real Estate Regulatory Authority and the Appellate Tribunal to help resolve issues quickly. Furthermore, it mandates the registration of all real estate developments.

Indian real estate law does not have a land registration system. The legal papers needed to transfer ownership from buyer to seller are referred to as a "registration."

All documents and paperwork connected to land must be registered under the Registration Act of 1908. The technique for registering documents in India is well established, and there is a robust government infrastructure in place to register and handle these records.

The Indian Stamp Act of 1899 governs the payment of stamp duty on real estate. It is a large percentage of the costs involved with property registration and must be paid to state governments by the buyer. Because the charges are collected by the state government, they vary from state to state. Stamp duty is typically charged as a percentage of the entire transaction value in the majority of states.

The Transfer of Property Act of 1882 is another legislation that governs the acquisition and selling of real estate. A "sale" is defined under the Transfer of Property Act as the transfer of ownership in return for a price that has been paid in whole or in part. To transfer tangible immovable property, only registered papers, as defined in the aforementioned Registration Act of 1908, may be employed. Section 55 of the Act requires the seller to notify the buyer of any substantial fault in the property or the seller's title that neither the seller nor the buyer is aware of and that the buyer could not have found, even with reasonable effort. Due to misrepresentation, the buyer has the right to reimbursement or indemnification from the seller.

Even if the seller provides all essential information about the property and his title, the buyer should do due diligence and check the seller's title.

Before purchasing a home, review the following documents:

  • Although not needed by law, the buyer's alertness is critical to becoming a legitimate customer. Due diligence is essential when purchasing a house. Here is a detailed guide on buying flats in India.
  • Certificate of Completion/Occupancy: When a project is completed, local authorities give a Certificate of Completion (CC). This document is required for applying for water and power connections, as well as bank loans.
  • Once a project is completed and deemed suitable for habitation, a local government agency will issue an occupancy certificate (OC), indicating that it was built in accordance with the necessary regulations. This document is required for applying for water and power connections, as well as bank loans.
  • A building or site plan is a project layout that indicates how the living quarters and utilities will be laid out. The buyer must do due diligence to ensure that the idea has received complete permission from the local municipal administration.
  • Encumbrance Certificate: An encumbrance certificate may be obtained from the sub-office registrar where the property is registered. It says that there are no outstanding obligations, both financial and legal, on the property. It is vital to verify that the seller is the legal owner of the property, that they have your authorisation to sell the property to you, and that the property has no outstanding debts (such as property or other taxes, energy or water bills).

Even though it is not legally required, a no objection certificate issued by society may be acquired.


Buying real estate and registering it with the proper authorities might seem to be a difficult undertaking. You'll realise that, despite its complexity, Indian real estate law is doable if you have a basic grasp of the process. When buying properties and homes, it is always advised to take professional and expert guidance and suggestions.