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 included. The Real Estate Law governs who can use and 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 debtor’s property title. After the successful completion of the debt payment, the transfer of the title is canceled.
• Foreclosure is the term used if the lender takes control of the home or any property used for the mortgage if the debtor does not pay the amount.
• The official meeting to transfer ownership of the land or property is called a closing.
• Trust is the term used for money or property held with a third party for safekeeping.
• Real estate agent is the person authorized to negotiate and carry out real estate transactions.
Last year, the Government of India announced the long awaited regulation in the real estate sector, which is the introduction of the RERA Act (Real Estate Regulation Act). By law, home builders must deposit approximately 70% of the amount in 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 is only used for this project and that it is also safe without being transferred to others. Projects.
• With the introduction of this new law, buyers do not have to pay for the area over the area of the carpet. It is one of the important things to remember.
• All authorizations from both the buyer and the builder must be done prior to selling. The builder must disclose the information about the apartment.
Builders can sell the property only after obtaining the proper authorizations.
RERA is the central law, but as the real estate sector 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 law, estate planning, and insurance law.