Prior to purchasing a property in India, the buyer needs to know the relevant real estate laws and regulations in India. Both state laws and central laws govern the real estate laws as well as the regulations in the country.

Real estate refers to anything related to land or even a building, i.e., residential or commercial properties. There are indeed several property laws and acts that are rather important to consider before purchasing a house.

What to know before buying a house under the new property rules?

All about property laws in India

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

Based upon the Property Act, immovable property is a property that includes land, benefits that arise from the land, and a thing that is indeed 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.

The definition of land in the Indian Constitution means property laws in India are under the purview of relevant property acts and property laws. It is important to consider these laws before making a purchase.

Real Estate Laws and Regulations in India

There are a few of India’s basic real estate laws that a homebuyer needs to know prior to purchasing a property:

Registration Act, 1908, and the India Stamp Act, 1899

These two acts do define the laws that are 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 the payment of stamp duty.

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

The Real Estate Regulatory Authority Act 2016 does deal with the marketing, sale, and development of real estate projects. The act safeguards the interests of customers who are searching for a property. All developers must register all the real estate properties under this act to be considered valid. Different state governments have created their own RERA authorities for monitoring the implementation of this act.

Decoding real estate laws and regulations in India

Rehabilitation and Resettlement Act, 2013

This act is indeed important as it regulates land acquisition by the government and also lays down the procedure and rules for granting compensation, rehabilitation, and resettlement to the affected persons in India. If the beneficiaries are dissatisfied, they can seek legal redress from an appropriate authority.

Transfer of Property Act, 1882

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

Indian Contract Act, 1872

This act does govern contracts in India. The act also takes care of execution, implementation, remedies, and breach of contracts. The sections that happen to be included in the Transfer of Property Act are part and parcel of the Indian Contract Act.

Foreign Exchange Management Act, 1999

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

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


It is easy for people to purchase a house in India if they know all the property and real estate laws applicable in India.

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