The real estate sector is largely unorganized and unregulated. There is not much information with the intending transferor and transferee about the legal status of transaction and they rely most on real estate agents and property dealers.
Broadly, real estate includes land and building. Land may be used for agricultural, industrial, residential or commercial purposes. Land uses are mostly defined and it is not permissible to use land for any other purpose other than what it has been earmarked.
Rising prices of land has given rise to multistory buildings in India in both residential and commercial sector. The developer acquires the land, obtains necessary permissions and raises flats/apartments on the said land with a view to sell the same.
The Union Government has drafted a model Real Estate (Regulation of Development) Act. The goal of the Act is to establish a regulatory authority and appellate tribunal to regulate, control and promote planned and healthy development and construction, sale, transfer and management of properties.
