Real estate is everything related to constructing and developing commercial or residential buildings and land. It sounds like a straightforward concept, but it covers many areas of law. Property law regulates who can use and own land or buildings.
Some terms used in property law:
– Title is a standard legal term describing the owner of a property.
– A mortgage is a loan of money with interest in exchange for the right of ownership of the debtor’s property. Once the debt is paid, the title lapses.
– The term ‘foreclosure’ is used when a lender takes possession of a house or any property used for a mortgage loan if the debtor fails to repay the amount
– A formal meeting at which title to land or property is transferred is called a foreclosure.
– Escrow is the term used for money or property deposited with a third party for safekeeping.
– A real estate broker is authorized to negotiate and execute real estate transactions.
Last year, the Indian government announced a long-awaited real estate regulation, namely introducing the Real Estate Regulatory Act (RERA). The Act requires house builders to deposit around 70% of the amount in an escrow account. This guarantees buyers that the money will not be used for other projects.
Benefits of RERA:
– As mentioned earlier, the builder deposits 70% of the amount taken from the buyers in an escrow account, which guarantees the buyers that their money will be used only for this project and that it will be safe and not transferred to other projects.
– With this new law, buyers will not have to pay for the area above the carpet’s surface. This is one of the maximum critical things to remember.
– All approvals from the buyer and the developer must be completed before the sale. The builder must provide information about the home.
Developers can only sell their property once they have obtained the necessary permits.
RERA is a central law, but since real estate is a state jurisdiction, state governments play an essential role in implementing this law. However, real estate law also involves several other practice areas, such as tax law, landlord and tenant law, accidents and injuries, estate planning, and insurance law.