Real Estate is anything related to the construction and development of land and buildings either commercial or residential. This seems to be a very simple concept, but there are many legal disciplines included. Real Estate Law governs who may use an own land or buildings.
Some terms to note in the Real Estate Law:
• The title is the official legal term which describes the owner of the property
• The mortgage is lending money at interest in exchange of title on the debtor’s property. After the successful completion of the debt payment, the conveyance of the title becomes void.
• Foreclosure is the term used if the lender takes control of the house or any property used for mortgage if the debtor fails to pay back the amount
• The official meeting for transferring the ownership of the land or property is termed as closing
• Escrow is the term used for money or property withheld with the third party for safekeeping
• Real Estate Agent is the person licensed for negotiating and conducting real estate transactions
The much awaited regulation in the realty sector has been announced by the Government of India last year, which is the introduction of the RERA Act (Real Estate Regulatory Act). Under the act, the home builders have to deposit about 70% of the amount in the Escrow account. This will ensure the buyers that the amount is not diverted to some other projects.
Benefits of the RERA Act:
• As mentioned earlier, the builder will divert 70% of the amount taken from the buyers to the Escrow account and this will ensure the buyers that their amount is only being used for this project and safe as well without being transferred to other projects.
• With the introduction of this new act the buyers do not have to pay for the area over the carpet area. It is one of the important things to remember.
• All the clearances both from the buyer and the builder should be done before selling. The builder needs to disclose the information regarding the apartment.
The builders are allowed to sell the property only after getting proper clearances
RERA is the central law, but as Real Estate is subject to the state, the state governments have a major role in implementing this act. However, the various other related practice areas to the Real Estate law include Tax Law, Landlord Tenant Law, Accidents and Injuries, Estate Planning, Insurance Law.