ILN: BUYING AND SELLING REAL ESTATE - AN INTERNATIONAL GUIDE

[BUYING AND SELLING REAL ESTATE IN INDIA]

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primarily on immovable property and then on the development thereupon. 2.5. The Real Estate (Regulation and Development) Act, 2016 The Central Government, through the Ministry of Housing and Urban Poverty Alleviation, has enacted the Act. It is an Act to establish the Real Estate Regularity Authority for the regulation and promotion of the real estate sector and to ensure sale of plot, apartment or building, or a real estate sector project in an efficient and transparent manner and to protect the interests of the consumers in the real estate sector and to establish an adjudicating mechanism for speedy dispute redressal and also to establish the Appellate Tribunal to hear appeals from the decisions, directions or orders of the Real Estate Regulatory Authority. 2.6. The Indian Evidence Act, 1872 Under the Act, in the event status of any person as the owner of a piece of immovable property is questioned, of which such person is shown to be in possession of, the burden of proof clarifying that such person is not the owner lies on the person who asserts that person in possession of immovable property is not the owner. 2.7. Urban Land (Celling and Regulation) Act, 1976 This legislation affixed a ceiling on the vacant urban la nd that a ‘person’ in urban clusters can acquire and hold. Under the Act, excess vacant land is either to be surrendered to the Competent Authority appointed under the Act for a small compensation, or to be developed by its holder only for specified purposes. Even though the Government of India has

repealed this Act in relation to most areas, it is still in effect in certain states.

3. CATEGORIZATION OF REAL ESTATE 3.1. On the basis of ownership 3.1.1. Freehold Property

Refers to an estate which is free from the hold of any entity, besides the owner. In its true essence the owner alone enjoys the complete ownership and can utilize the estate for any purpose (renovate or transfer or lease) in accordance with the local regulations. In its strict interpretation, sale of such estate will not require any prior legal or government consent and thus has less paperwork attached. For such reasons, a freehold asset is more expensive when compared to a leasehold asset.

3.1.2. Leasehold Property

Refers to an estate which has been leased to a person for a certain number of years but the estate at all times remains under the ownership of the state. Utilization of the Leasehold estates if affixed to the purpose for which it was obtained. Since the person is possession of such estate is not the owner and property is not freehold, transfer of such estate requires prior state consent (obtained at the land office).

3.2. On the basis of land use 3.2.1. Residential

Such land is utilized exclusively or intended to be used for family dwelling or associated uses for residential purposes. Zoning for

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