Investing in real estate in India need fulfillment with various laws which run into dozens, some of them more than 100 years old and some very new. In addition to federal laws of India, there are many state laws governing real estate transactions and investment. The main 2 federal law governing real estate includes:
Indian Transfer of Property Act
The Transfer of Property Act governs the transfer of property by various means. Sales, mortgages and exchanges of immovable property are necessary to be registered by virtue of the Transfer of Property Act. Therefore, all the above documents must be in writing and registered for selling a property in Chennai.
Indian Registration Act, 1908
The purpose of this Act is the conservation of evidence, assurances, title, publication of documents and prevention of fraud. It details the formalities for registering an instrument. Instruments which require mandatory registration include:
• Instruments of gift of immovable property;
• other non-testamentary instruments which assert or operate to create, declare, assign, limit or extinguish, whether in present or in future, any right, title or interest, whether vested or contingent, to or in immovable property;
• non-testamentary instruments which acknowledge the receipt or payment of any consideration on account of instruments in (2) above.
• leases of immovable property from year to year, or for any term exceeding one year, or reserving a yearly rent.