Real Estate is everything related to the construction and development of land and buildings, whether commercial or residential. This seems to be a very simple concept, but there are many legal disciplines involved. The Real Estate Law governs who can own the land or buildings.
Some terms to keep in mind in the Real Estate Law:
• Title is the official legal term that describes the owner of the property.
• The mortgage consists of lending money at interest in exchange for the title to the debtor’s property. After successfully completing the payment of the debt, the title transfer becomes void.
• Foreclosure is the term used if the lender takes control of the home or any property used for the mortgage if the borrower does not pay the amount
• The official meeting to transfer ownership of the land or property is called closing
• Escrow is the term used for money or property held with a third party for safekeeping.
• Real Estate Agent is the person licensed to negotiate and carry out real estate transactions.
The much awaited regulation in the real estate sector has been announced by the Government of India last year, which is the introduction of the RERA Act (Real Estate Regulation Act). By law, homebuilders have to deposit about 70% of the amount into the escrow account. This will ensure buyers that the amount is not diverted to other projects.
Benefits of the RERA Law:
• As mentioned above, the builder will divert 70% of the amount taken from the buyers to the escrow account and this will assure the buyers that their amount will only be used for this project and will not be transferred to other projects.
• With the introduction of this new law, buyers do not have to pay for the area above the carpet area. It is one of the important things to remember.
• All authorizations from both the buyer and the builder must be done before selling. The builder must disclose information about the apartment.
Builders can sell the property only after obtaining the proper authorizations
RERA is the central law, but since Real Estate is subject to the state, state governments have an important role in the implementation of this law. However, the other practice areas related to Real Estate law include Tax Law, Landlord and Tenant Law, Accident and Injury, Estate Planning, Insurance Law.