(7) Law - Real Estate

Land Acquisition - The Right to Fair Compensation and Transperency in the Land Acqisition
Rehabilitation and Resettlement Act 2013

The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and
Resettlement Act, 2013 (also Land Acquisition Act, 2013) is an Act of Indian Parliament that
regulates land acquisition and lays down the procedure and rules for granting compensation,
rehabilitation and resettlement to the affected

Compensation : Given the inaccurate nature of circle rates, the Bill proposes the payment of
compensations that is up to 4 times the market value in rural areas and 2 times the market value
in urban areas.

Provisions for Acquisition of Land under Muncipal Laws -

Acquisition of Property - Power to acquisition, by Agreement, can not by Agreement,

Streets, Improvement of public streets, Street lines, Maintaining register with plan showing all the
regular lines of street & to keep it open for inspection, SettingBack Building to regular line of street,
Take possession of land portion within Building line, Order setting back of Building, Acquisition of
Open Land, Platform with regular line of street, Acquisition of Remaining part of Building or land,
Compensation to be paid & Betterment Charges to be Levied,
Imporovement Scehems - Collector to take Possession After making an Award and Transfer of
Land to Corporation

Preliminary Survey, Date of publication of notification, Payment of Slatium, Apportionment of

Compensation, paymeny, Temporary Occupation of Land, Misc

Determination of Damages, Compensations etc - Take possession after payment

Development Control Regulations (DCR) -

Vital impact on Market Value of the property through regulation controlling the type and quality of
use and the intensity of use of properties

TP Acts, Prepare Master Plan / Developemnts Plans, TP Schemes for better planning of towns,
DCR and regulations, Land use & zoning regulations, FSI, FAR, height restrictions, room sizes,
ventilation, marginal open spaces, safety regulations

Necessity of DCR - Exercises control over development, stopping undesirable and haphazard
due to overburdening of utility services, basic civik amenities like water supply, roads, drainage,
sewerage disposal, solid waste disposal, street lighting

Building Rules & Regulations - DRC

Open Space -
It is any open piece of land that is undeveloped (has no buildings or other built structures) and is
accessible to the public. Open space can include:Green space (land that is partly or completely
covered with grass, trees, shrubs, or other vegetation).

FSI -
(total covered area on all floors of all buildings on a certain plot, gross floor area) / (area of the plot).

Plinth Area Restrictions -

Built-Up Area or Plinth Area - Total covered area of the apartment or commercial property unit.
It can be calculated by adding areas of utility ducts within property unit, internal and external walls
to the carpet area. As a rule of thumb, built up area can be calculated by adding 10% loading
factor on carpet area.

Rent Control Laws -

Tenant - Person by whom rent is payable for any premises

Occupancy Rights of Tenants - A landlord shall not be entitled to the recovery of possession of any
premises so long as the tenant pays, or ready and willing to pay, the amount of standard rent and
permitted increases. Tenant cannot be ordinarily evicted if he pays frozen rent regularly

Recovery of Possession ( Eviction of Tenant ) -

Tenant made Aulteration which causes damage to building & permanantly injurious to premises
Tenant errected any permanent structure on premises without permission of landlord
Tenant sublet or give on licence whole or part of let out premises
Let out premises are reasonably and bona fide required by landlord for personal use
Landlord - for purpose of erecting new building - bonafide purpose
Let out premises have not been used for a continuous peiod of 6 months prior to suit date

Premises - Land not used for agricultural purpose, Building other than Farm Building

Effect of Rent Control Act on Valuation -

Frozen Rent, landlord discoraged to constrcut new building for letting. Shortage of house
Landlord discontinued maintaing & Repairing building due to low rental income
Illegal system of payment - salami, pagdi, premium - anaccounted money
Damaged ethical and moral standards
Right of Way - Licenses under the Indian Easement Act 1882 -

A being the owner of the house adjacent to B's land has right of way over B's land to and from
his house for the beneficial enjoyment of his house. Such right is also recognised by law and is
defined under the Indian Easement Act, 1882
Light, Air, Drainage, Right to Support

RERA Act 2016 -

developer can’t make any changes to the plan without the written consent of the buyer
500 Sqm Land, and 8 or more apartments
realty project is completed in time. If delayed, then the developer will have to pay interest on the
amount paid by the buyer
every phase of apartment will be considered a standalone real estate project, and separate
registration needs to be obtained for each project
It is compulsory for a state to establish a State Real Estate Regulatory Authority as per the new act.
Buyers could approach this body for redressal of their grievances.
The property will have to be sold to buyers based on carpet area and not on super built-up area
which will become illegal under the new law.
Failing to register a property will attract a penalty up to 10% of the project cost and a repeated
violation could send the developer in jail.
developer will have to place 70% of the money collected from a buyer in a separate escrow
account to meet the construction cost of the project
If the buyer finds any shortcomings in the project then buyer can contact the developer in writing
within one year of taking possession
The law has a provision of a maximum jail term of three years with or without a fine, for a developer
who violates the order of the appellate tribunal of the RERA

The Transfer of Property Act 1882 -

It contains specific provisions regarding what constitutes a transfer & the conditions attached to it.
It came into force on 1 July 1882. According to the Act, 'transfer of property' means an act by which
a person conveys the property to one or more persons, or himself and one or more other persons

Transfer of property by act of parties

between two living persons
Operation of law
Mutation of property is the recording in the revenue records thetransfer of title of a property
Family arrangement or partition
A release of relinquishment of one¶s right in favour of another
A surrender or merger
When easement is created

Sale -
According to section 54 of the transfer of property act, 1882, 'sale' has beendefined in the
following manner:'sale' is a transfer of ownership in exchange for a price paid or promised or
part-paid and part-promised

Mortgage -
Section 58 (a) of the TRANSFER OF PROPERTY ACT, 1882, defines mortgageas, “A mortgage
is the transfer of an interest in specific immovable property for the purpose of securing the payment
of money advanced or to be advanced by way of loan, an existing or future debt, or the
performance of an engagement which may give

Gift -
According to Section 122 of Transfer of Property Act, 1882 'Gift' is defined as thetransfer of
certain existing moveable and immoveable property made voluntarily and without consideration, by
one person called the donor, to another, called the donee & accepted by or on behalf of the donee

Exchange -
Exchange under the Transfer Property Act, 1882. When two persons mutually transfer the
ownership of one thing for the ownership of another, neither thing or both things being money only,
the transaction is called an “exchange”

Assignment -
Assignment on the transfer of property act 1882, strength & weakness of the sections.
Transfer of Property Act, 1882 came into force on 1st July, 1882. Transfer of property means an
act by which a living person conveys property to one or more other living persons

Charge -
Section 100 of the Transfer of Property Act, 1882(henceforth referred as “the Act") defines a
charge. The second exception lays down that no charge shall be enforced against any property in
the hands of the person to whom such propertyhas been transferred for consideration and without
notice of the charge

Lien -
a right to keep possession of property belonging to another person until a debt owed by that
person is discharge

Tenancies -
Deemed tenancy means tenancy which is implied. It is also known as tenancy by holding over.
According to the Transfer of Property Act 1882, these circumstances would lead to tenancy by
holding over: The lessee or underlessee of a propertyremains in possession after the determination
of the lease granted by the lessor

Lease of immovable Property -

A lease is a contract outlining the terms under which one party agrees to rent property owned by
another party. It guarantees the lessee, also known as the tenant, use of an asset and guarantees
the lessor, the property owner or landlord, regular payments from the lessee for a specified number
of months or years.

A lease is the grant of legal interest in land which gives exclusive possession for a fixed period of
time. A licence is merely a personal ...

Lease granted by Private and Statutory Bodies -

Financial Lease. Financial leasing is a contract involving payment over a longer period. ...
Operating Lease. ...
Leveraged and non-leveraged leases. ...
Conveyance type lease. ...
Sale and leaseback. ...
Full and non pay-out lease. ...
Specialized service lease. ...
Net and non-net lease.

Laws Relating to Inheritance / Succession

Mohmedan - Personal Law -

THE Holy Koran is the most religious and inspiring book in the Muslim World and is rightly
designated as the main and the original source of Muslim Law, religion and culture, and also of the
social, moral and other values, of Muslim Society. It is remarkable for its simplicity and practicability.
Muslims in India are governed by their personal law : Mohammadan Law.

The Hindu Succession Act 1956 -

An Act to amend and codify the law relating to intestate succession among Hindus. The Hindu
Succession Act, 1956 is an Act of the Parliament of India enacted to amend and codify the law
relating to intestate or unwilled succession, among Hindus, Buddhists, Jains, and Sikhs
The Hindu Succession (Amendment) Act 2005 -
The Act removed gender discriminatory provisions - Same rights to daughter

The Indian Succession Act 1925 -

It is a unilateral document and takes effect after the death of the person making it. It can be
revoked or altered by the maker of it at any time he is competent to dispose of his property.
A will made by a Hindu, Buddhist, Sikh or Jain is governed by the provisions of the Indian
Succession Act, 1925.

Will -
Will means the legal declaration of the intention of a person with respect to his property, which he
desires to take effect after his death. It is a unilateral document and takes effect after the death of
the person making it.

Essentials of Will -
Legal declaration by the executant
Competency of person to make the will
Law relating to wills
Execution of will
Signature of the testator on the will
The testator shall sign or shall affix his mark to the will or it shall be signed by some other person in
his presence and by his direction. The will should be dated
Attestation
The will shall be attested by two or more witnesses. The attestation by the witnesses should be by
the signatures of the witnesses and not by their mark and the attestation should be done after the
testator has executed the will and not before. The attesting witnesses need not know the contents
of the will and the testator need not disclose the nature or contents of the document
Property, which can be, disposed off by Will

Testament -
a person's will, especially the part relating to personal property, something that serves as a sign or
evidence of a specified fact - Document

testament definition: 1. proof: 2. a will that someone makes, saying what should be done with their
money and property after they die: 3. proof of something

Succession Certificate -
as a certificate issued by a court to the legal heirs of a deceased to establish the authenticity of
the heirs and give them the authority to inherit debts, securities and other assets of the deceased
Legal Heir Certificate is issued from revenue office of the district to identify a particular deceased
person living heirs.
A succession certificate is issued by a civil court to the legal heirs of a deceased person
and Acqisition

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1 Land Acquisition 2013
2 Act Application
3 Market Value date
4 Market Value Determination
5 Important
6 Building rules & regulations
7 Parking Space
8 Open Space
9 Ground coverage
10 exists & Fire fighting
11 TDR
12 Rent Control Laws
13 Tenant eviction
14 Right of Way
15 Licence characteristics
16 RERA Act 2016
17 Main Objective of RERA
18 Salient Features of RERA
19 Salient Features of RERA
20 Transfer of Property Act 1882
21 Intangible Assets
22 Untransferable
23 Dominant heritage
24 Servient Heritage
25 Vested Interest
26 Contingent Interest
27 Mesne Profit
28 Mortgage
29 Pledge
30 Charge
31 Lease
32 Exchange
33 Gift - Section 122
34 Movable property gift
35 Immovable property gift
36 Mohmedan - personal Law
37 Hindu succession Act 1956
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7 - Law - Real Estate
Right to Fair Compensation & Transpareancy in Land Acquisition, Rehabilitation & Resettlement
Private/specified public 80% prior consent of affected families, PPP Projects - 70%
Notification date for market value determination
Sale instances, average sale price similar land nearest village/vicinity area 3 Years, highest
Exemption from income tax, stamp duty & fees on award or agreement
Local muncipal body, Master Plan & zoning Rules, NBC 2005
Building plans includes details of parking spaces
Integral site part at ground level open to sky
Area covered by Building/Total Plot Area X 100
2 Exist floors for buildiing over 15.25 m height
Transferable Development Rights in form of FSI - only for reservations
favour for tenants
change purpose, no paid rent for 3 months in 12 months, owner requirement, illegal use
Section 52 of Indian Easement Act 1882
No transfer of interest, not transferable/heritable, personal, terminated by death
Real Estate Regulating Authorities - regulate & promote real estate sector
transferancy & accountability, regularity, promote orderly growth
every state, mandatory registration, no sale, website bookings, 30 days approval from RERA
10%, 70%, 500 Sqm, 8 tenements, civil court no jurictions for RERA
Sale, Mortgage, Gift, Exchange, Assignment, Charge, Lien, Tenancies/Sub tenancies
know-how, patent, copyright, trade mark, licence, franchise, goodwill, commercial rights
Succesion, personal enjoyment right, maintenance, mere right to sue
enjoying easement rights
Owner of property & his right is asserted
interest transferred but transfer deed not done
Property transferred - effect from fate of an uncertain event or action
wrongful possession - rent loss with interest
Simple, Deposite title deed, English, conditional sale, Usufructuary, Anomalous
Movable property as security
Immovable property - security for money payment - no mortgage
Consideration, premium, rent, time period
2 persons each transfers their ownership - non money item - barter - family partition
Voluntarily without consideration - donar, accepted by donee,trust, 2 witness
transfer is optional, done by delivery of property
registered instrument - donar sign, 2 witnesses
son double share of daughter, wife 1/8 if child & 1/4 no child, more wife 1/8 equaly divided, will 1/3, gift any
Hindu,BJS, equal shares, uniform succession order, gransfathers property rights
will 1/3, gift any
 7 - Law - Real Estate

1 LAAR - Market Value by Collector highest 50%, 3 Years, nearby villages

2 The Hindu Succession Act, 1956 does not apply to Converted christans
3 The Transfer of Property Act received its assent on 17 Feb 1882
4 The Transfer of Property Act, 1882, came into effect from 1 Jully 1882
5 TPA 1882, the immovable property does not include Standing Timber, Jwellary, Crops
6 According to Transfer of Property Act, 1882 Instrument means non testimatory instrucments
7 term "attested" means 2 or more witnesses
8 Easement is a right in personam
9 Easement cannot be created by Law
10 Quasi-easement is Transfer his interest in heritage
11 Contract Agreement enforceable by law
12 promises, forming the consideration for each other, Agreement
13 Reciprocal Promice Promice & Consideration part of each other
14 Section 2G An agreement not enforceable by law is stated to be void under
15 Offer as defined under section 2(a) is Willingness
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