Decoding the Real Estate Laws (Acts) and Regulations in India - Old and New Property Rules

March 26, 2024 in Property Guide

Artistic ImpressionDecoding the Real Estate Laws (Acts) and Regulations in India - Old and New Property Rules

Understanding the Crucial Real Estate Laws and Regulations!

Before purchasing a property in India, you need to learn all about the relevant real estate laws and regulations in India. Both state laws and central laws govern the real estate laws and regulations in the country.

Real estate refers to anything related to land or a building, i.e., residential or commercial properties. There are several property laws and property acts which are important to consider before purchasing a house. Read on to learn more about things to consider before buying a house under the new property rules.

All About Property Laws in India

Real estate laws in India play a significant role in every property-related transaction in the country. These real estate laws and policies are decided by the state governments and the central government of India from time to time.

According to the Property Act, immovable property is a property which includes land, benefits arising out of the land and a thing which is permanently attached to the earth or permanently fastened to anything attached to the earth. The Real Estate Regulatory Authority (RERA) governs real estate projects' marketing, sale, and development in India.

Because of the definition of land in the Indian Constitution, property laws in India come under the purview of relevant property acts and property laws. According to the Indian Constitution, “land” is listed in the State List of the 7th Schedule of the Constitution, which states that the state can only legislate land agreements. But on the other hand, contracts other than those for agricultural land fall under the Concurrent List of the 7th Schedule, which says that the central government can legislate on these matters. As a result, there are several real estate laws in India. Thus, it becomes pertinent to consider these laws before buying a house in India.

=> Read Also: MahaRERA (RERA Maharashtra) - All You Need Know About MahaRERA Before Buying a House!

Real Estate Laws and Regulations in India

Listed below are some of India's basic real estate laws that every homebuyer should keep in mind before purchasing a property.

Registration Act, 1908 and India Stamp Act, 1899

These two acts define the laws required to register multiple deeds, instruments, and documents required to transfer the immovable property to the interested customer. Both acts also ensure that proper documentation is maintained for the property transfer and payment of stamp duty.

Real Estate Regulatory Authority or Real Estate Regulation and Development Act (RERA), 2016

The Real Estate Regulatory Authority Act 2016 takes care of the marketing, sale, and development of real estate projects. The act safeguards the interests of customers looking to purchase a property. It is mandatory for all the developers to register all the real estate properties under this act to be considered valid. Different state governments have hence created their own RERA authorities to monitor the implementation of this act.

Rehabilitation and Resettlement Act, 2013

This act is important as it regulates land acquisition by the government and lays down the procedure and rules for granting compensation, rehabilitation and resettlement to the affected persons in India. In case the beneficiaries are not satisfied, they may seek legal redressal from an appropriate authority.

=> Real Also: RERA Gujarat (GUJRERA) - Essential Things You Need to Know About RERA Gujarat Before You Buy a House!

Transfer of Property Act, 1882

The Transfer of Property Act is a central act regarding ownership of immovable assets like land in the form of loans, exchanges, gifts, mortgages, leases, etc. Any property being sold by a seller and purchased by a buyer is governed under this act.

Indian Contract Act, 1872

This act governs the contracts in India. The act also takes care of the execution, implementation, remedies, and breach of contracts. The sections which are included in the Transfer of Property Act are a part of the Indian Contract Act.

Foreign Exchange Management Act, 1999

FEMA was introduced for the non-residents of India who want to purchase land in the country. The FDI policy takes care of all the foreign investments made in the real estate sector.

Can an NRI Buy a Residential Property in India?

There might be a few restrictions for some people if they want to purchase a residential property. There are three kinds of people who live outside India:  
  •     Non-resident Indians
  •     Indian-origin foreign nationals
  •     Non-Indian origin foreign nationals

Non-resident Indian and Indian-origin foreign nationals are allowed to have ownership of any residential property in India that is inherited by non-resident Indians and Indian-origin foreign nationals. Non-Indian foreign nationals are not allowed to purchase a housing property. All these laws apply to residential properties and commercial properties, as no foreign company can acquire land in India by itself.

=> Real Also: HRERA (RERA Haryana) - All You Need to Know about RERA Haryana Before Buying a Home!


It is easy for people to purchase a house in India if they know all the property and real estate laws applicable in India. For good residential properties, you can refer to Adani Realty. It offers various properties in different cities for real estate investment in India. You can go through the Adani Realty website to learn about all the real estate laws and other things to consider while purchasing a house.

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