Though there are different types of properties, but law recognizes three types of properties i.e. personal property, Intangible properties, Real Estate. The personal property consists of all the belonging or the objects in possession of the person. Intangible property refers to the property that does not have any physical existence but that can be presented by physical item such as certification. There are bundle of rights linked with the real estate properties. Real estate law directly or indirectly impacts most of the people on a daily basis, affecting homeowners, renters, landlords, home buyers and home sellers. For the regulation and promotion of the real estate sector and to ensure sale of plot, apartment, RERA is the Authority established under the Real Estate
Act to ensure efficient and transparent working and to protect consumers in the real estate sector. India has several land related laws each has a separate function in protecting rights to land. We have the Transfer of Property Act, which deals with both movable and immovable property, and the Indian Easements Act, the Registration Act, Transparency in Land Acquisition, Rehabilitation and Resettlement Act of 2013, and the Benami Transactions (Prohibition) Amendment Act, and the Indian Stamp Act 1899 and there are many other municipal and local laws. Most industrial zones are owned by State Governments and land is allotted on a leasehold basis (mostly through perpetual leases which are usually for 99 years). Residential and commercial premises are also given on a lease and license basis, where the licensee only has the right to use and occupy the premises with no interest in the premises. A foreign corporate which has a branch office in India is permitted to acquire immovable property in India so long as this is essential for carrying out its business in India. Property tax in India varies from State to State and differs for freehold and leasehold property. The Real Estate (Regulation and Development) Act, 2016 has been recently enacted to regulate and promote the sale of real estate in an efficient and transparent manner and to protect the interest of buyers. The Government has been taking several measures to protect the interests of purchasers as several violations of consumer rights in the real estate sector had been seen in the past. The most commonly faced problems for a property buyer is delay in delivery of possession in a building. It makes other things difficult to plan for the future, and also increases other costs. If the builder delays the completion of the construction beyond the stipulated time, the property buyer is entitled to seek a refund from the builder. The buyer can also file a consumer complaint for deficit in service as specified under the provisions of Consumer Protection Act, 1986 against the builder. There are special provisions in some states for the benefit of consumers which make the builder liable to refund the money obtained from a consumer with interest if he is unable to justify delay in possession. Such provisions clearly work to safeguard the interest of the consumer and it is the duty of the builders to complete the construction on time. Before taking any action, it is advisable to send a legal notice to the opposite side. The buyer can also claim the money required to buy alternate accommodation at the ongoing market value in the respective area. He can also claim interest on the payment made till date. In case the buyer is purchasing a ready property from a builder or an investor, RERA will hardly have an impact on that deal. However, if the buyer chooses to purchase an under construction property, then RERA comes to the buyer as an advantage. RERA doesn’t propose any market control measures. Real estate prices are fully governed by market economics with practically no government regulatory control or interference. RERA will need designers to change their processes and systems and get complaint with the RERA rules. Such compliance will be definitely an additional cost which every developer would try to pass on to the buyer. If the builder fails to deliver the property on the date as stipulated in the agreement then the buyer can file a civil suit as there is a breach of obligations as per the agreement. One can also opt for arbitration if there is an “Arbitration clause” in the builder- buyer agreement. Usually, it takes 3-6 months for resolving a matter through arbitration. There is no trial under this alternative and no evidence is considered while passing the award. In a recent judgment, NCDRC has held that even when there is an “arbitration clause” in the builder- buyer agreement. If the builder has cheated or defrauded the buyer then he can file a criminal complaint under the provisions of Indian Penal Code for cheating, etc. A bailable warrant can be issued against the builder if the buyer opts to file a criminal complaint. While claiming the compensation the buyer can claim interest on the payment made till date. If the homebuyer is staying in a rented accommodation, then the money spent on rent till the possession is delayed. Also, he can claim loss of opportunity caused to the purchaser, had he invested his money elsewhere.