Real estate is anything related to the construction and development of land and buildings, whether for commercial or residential purposes. It seems like a very simple concept, but it encompasses many legal disciplines. Real estate law governs who can use and own land or buildings.
There are some terms from real estate law that need to be considered:
– Title is a formal legal term that describes the owner of property.
– Mortgage is the lending of money at interest in exchange for title to the debtor’s property. After the debt is successfully paid off, the transfer of title expires.
– Foreclosure is when the lender takes control of the home or other property used for the mortgage if the debtor fails to repay the amount.
– A formal meeting to transfer ownership of the property or real estate is called a “closing.”
– Escrow is a term used to refer to money or property that is held by a third party for safekeeping.
– A real estate agent is a person licensed to negotiate and conduct real estate transactions.
Last year, the Indian government announced the long-awaited regulation of the real estate sector, namely the Real Estate Regulation Act (RERA). Under this law, real estate developers will have to deposit about 70% of the amount into an escrow account. This ensures that buyers will not divert the amount to other projects.
Benefits of the RERA Act:
– As mentioned earlier, the builder will deposit 70% of the amount collected from buyers into an escrow account, which ensures buyers that their amount will only be used for this project and will also be safe from going to other projects.
– With this new law in place, buyers will no longer have to pay for the area above the carpet. This is one of the most important things to keep in mind.
– All permits must be obtained from both the buyer and the builder before the sale. The builder is required to disclose information about the home.
Developers are only allowed to sell properties after obtaining the proper permits.
RERA is a central law, but because real estate is administered by the states, state governments play an important role in implementing the law. Various other areas of real estate law include tax law, landlord and tenant law, accident and injury, estate planning and insurance law.
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