Purchasing property in India is like walking through a legal maze blindfolded, and trust me? Most of us learn the hard way. When I was searching for a house three years ago, I figured the real estate laws were mere bureaucratic mumbo-jumbo that lawyers took care of. Then I came very close to getting burned on a deal that seemed perfect until Reeltor.com intervened and explained what the heck I was actually doing.
As a customer, the Real Estate Regulation and Development Act (RERA) should be your best friend, but everyone is like it is some dull government report. This act was actually written to save you from developers who will tell you anything you want to hear and get you a crater instead of the moon. All projects of a minimum size need to be registered with Reeltor-recommended RERA authorities, and developers are required to deposit 70% of the funds in escrow accounts. My cousin paid for this lesson in a hard way when his builder disappeared with all our money on an unregistered project.
Here's something you never hear about stamp duty until you're in the registrar's office: it's absolutely different from state to state and can totally derail your budget. You may get charged 5-6% of the property price for the same property in Maharashtra, which is fairly less in other states. Reeltor advisors always advise to research the below charges beforehand because they are not negotiable and you have to pay them immediately at time of registration.
The Transfer of Property Act is this giant piece of legislation that dictates how property is transferred in India. Exciting, huh? It has important safeguards such as the right to examine property documents and clear title obligation on the seller. When I was purchasing my apartment, Reeltor walked me through what "clear title" really means making sure the seller actually owns it legally and no one else does.
Property registration is where things get seriously technical, and this is also where most buyers make costly blunders. Upon signing the sale agreement, you have four months to register the property. If you are unable to register before this four month deadline, there can be serious penalties involved. Registration of property involves numerous stamp papers, witness signings, biometric identification, etc. Reeltor professionals have helped buyers out of registration entanglements by correctly following through these processes.
Consumer protection acts also cover real estate, which is an area that is not understood by most buyers. If a developer fails to hand over possession after the date assured, you can get compensation based on consumer protection rules. My neighbor had battled for two years in court on delayed possession and was awarded valuable compensation because she knew her rights under consumer protection acts.
Tax effects are yet another minefield that Reeltor.com experts assist you in negotiating. Capital gains tax, property tax value addition, and TDS deductions on property transactions can have a huge effect on your financial planning. The Income Tax Act contains certain provisions for property transactions that can either provide you with savings or prove to be expensive depending upon how well you are aware of them.
While approvals of building or occupancy certificates are just a paper trail, they are legislative requirements that can bail you out of trouble in the future. Homes built without any approval or not properly noticed and approved can be demolished by demolition orders or contested in the courts. Reeltor will always check these documents as there is absolutely no amount of money that could list the peace of mind of knowing your happily living in an approved property.
Knowing these laws is not avoidance. It is knowledge for you to make decisions that will help preserve value and security for you and your and your family's future.
Comments
0 comment