Real Estate Rules All Homebuyers Should Know About

Real Estate Rules : Homebuyers Should Know About

Before buying a real estate property, it is vital to understand complex real estate laws. Usually, many homebuyers find it cumbersome to understand real estate rule. Therefore, it is recommended to get the assistance of a legal expert in making a real estate purchase. You can keep in mind the real estate rules discussed below if you are aiming to buy one of your preferred real estate projects in Gurgaon.

Purchase:

If you intend to buy an under-construction property, the rules covered under the Real Estate (Regulation & Development) Act, 2016, must be considered. These rules don’t apply if you are purchasing a ready-to-move-in property. 

If a dispute arises with the developer, the homebuyer needs to contact the state Real Estate Regulatory Authority (RERA) (if it’s under construction property). However, if it’s a ready to move in property, homebuyers get the option to contact the district-level consumer dispute redressal tribunals. 

Being a homebuyer, you ought to do certain duties. Unable to fulfill the duties will impose penalties that you need to pay based on the type of offense. As per the Act, homebuyers who can’t comply with the orders of the RERA need to pay a penalty for each day of non-compliance period. The corresponding penalty may reach up to 5% of the property cost”. You can go through the RERA Act 2016 to determine the laws applicable in the case of luxury floors.

Registration:

The registration also refers to legal ownership. Until a Gurugram real estate property is not registered after following the due process, the homebuyer doesn’t become the property’s legal owner. The rules applicable to property registration are specified in the Indian Stamps Act, of 1899. In addition to paying 1% of the property value as a registration charge, the homebuyer needs to pay stamp duty whose amount ranges from 4-10% in India.

Property Sale:

If you want to put your property for sale, you must consider the Income Tax laws. According to these laws, you need to pay capital gains tax on the profit you make. In case you want to save on taxes, you can either get the assistance of government schemes or invest in other fixed properties.

Renting the Property:

The Draft Model Tenancy Act of 2015 was proposed to revolutionize the way the real estate sector worked. As per this Act, a landlord/landlady, although rightful owners of the premises or a house in Gurugram, can’t enter therein without providing the tenant a written notice 24 hours beforehand of their arrival under any conditions (whether it for renovation or inspection or any other reason). 

Transfer of the Property:

When it comes to property transfer, laws of the Transfer of Property Act, 1882 are applicable. As per this Act, any type of property can be transferred by an individual. This is possible if the individual is capable of contract and is also entitled to the transferable property, or certified to dispose of transferable property not by his/her own.

The transfer can happen via gift, sale, and relinquishment. But, the law specifies that you can never sign a contract to gift a property that you aspire to own in the future. But, home loan options are available that help you to buy your dream home.

Conclusion:

It can seem overwhelming to buy a real estate property and register with the right authorities. The discussed law helps you to understand the fundamentals of applicable real estate laws. Make sure to get fully acquainted with the relevant laws and follow the required steps when purchasing your property. It may seem complex initially, but carefully going through the laws helps you to understand them easily.