Search this article on Google: How-To Navigate India’s Real Estate Finance Laws for Successful Property Investment
1. Get Acquainted with the Real Estate (Regulation and Development) Act, 2016 (RERA):
Explore and understand the Real Estate (Regulation and Development) Act, which governs the real estate industry in India. This act establishes a regulatory authority that helps protect real estate investors.
2. Engage a Real Estate Attorney:
An experienced real estate lawyer can guide you effectively through India’s complicated legal landscape. They can assist with property agreements, examine legal titles, advise on zoning laws, provide guidance on mortgage or financing structures, etc.
3. Understand Financing Options:
Familiarize yourself with various property financing options in India. Home loans from financial institutions are a common choice. Developers also offer financing options, but these might come with higher interest rates.
4. Comprehend the Transfer of Property Act, 1882:
This act defines the general principles of property transfer between parties. Understanding it is essential for successful real estate investment.
5. Know about Tax Implications:
6. Be aware of the Foreign Direct Investment (FDI) Policy:
If you are a non-resident investing in Indian real estate, acquaint yourself with the FDI policy. It outlines who can invest, how much they can invest, and where they can invest.
7. Understand the Registration Act, 1908:
According to this act, all transactions involving property sale need to be registered to make them legally valid. Get to know the procedure, costs, and the importance of registering the property.
8. Comprehend Local Municipal Laws:
Some laws vary with location, especially in metropolitan cities. You need to understand these laws depending on the city where you plan to invest.
9. Know the Implications of The Benami Transactions (Prohibition) Act:
It prohibits benami transactions – where property is held in one person’s name but paid for by another, often to evade taxation or conceal black money. Violations carry heavy penalties.
10. Plan Property Maintenance:
11. Obtain Necessary Clearance and Permissions:
Before investing, make sure that the property has all necessary clearances like environmental clearance, approval from municipal authority, fire safety clearance etc.
12. Ensure Compliance with Occupancy Laws:
Each state in India has its own occupancy laws which dictate how a property can be used. It’s important to ensure your intended use complies with these laws.
Remember, investing in real estate is a long-term commitment and knowledge about these laws is just the beginning. Continual tracking of changes in laws and policies, coupled with expert legal consultation, will pave the way for successful property investment in India.