Real Estate is everything related to the construction and development of land and buildings, both commercial and residential. This seems a very simple concept, but there are many disciplines of law included. Real Estate Law regulates who can use their own land or buildings.
Some terms to note in Real Estate Law:
• Title is the official legal term that describes the owner of the property
• Mortgage is lending money at interest in exchange for title to the debtor’s property. After successfully completing the debt payment, the transfer of rights becomes void.
• Foreclosure is the term used if the lender takes over the house or property used for the mortgage if the debtor fails to repay the amount
• The official meeting of the transfer of ownership of land or property is called closing
• Escrow is a term used for money or property held with third parties for safekeeping
• Real Estate Agent is a person who has permission to negotiate and carry out real estate transactions
The most awaited regulation in the realty sector was announced by the Government of India last year, namely the introduction of the RERA Act (Real Estate Regulatory Act). Under the law the home builder must deposit approximately 70% of the amount in the Escrow account. This will ensure the buyer that the amount is not diverted to some other project.
Benefits of the RERA Law:
• As mentioned earlier, the builder will transfer 70% of the amount taken from the buyer to the Escrow account and this will ensure the buyer that their amount is only used for this project and is safe as well without being transferred to another project.
• With the introduction of this new law, buyers do not have to pay for the area above the carpet area. This is one of the important things to remember.
• All permits from both the buyer and the builder must be made prior to selling. Builders need to disclose information about the apartment.
Builders are allowed to sell properties only after obtaining proper permits
RERA, is the central law, but because Real Estate is subject to the state, state governments have a major role in implementing these laws. However various other areas of practice are related to Real Estate law including Tax Law, Landlord Tenant Law, Accident and Injury, Estate Planning, Insurance Law.