Real Estate Law – IIB Exam

Syllabus Review – On line Study

By .Er.K.Sundarapandian,
BE,MBA,MRICS,LLB,(MSc,REV),FIIV,AIV,MIITArb,
Member – IIV & IOV
Syllabus at Glance
• Land Acquisition - The Right to Fair Compensation • The Transfer of Property Act, 1882
and Transparency in the Land Acquisition, • Transfer of Immovable Property: Sale, Mortgage, Gift,
Rehabilitation and Resettlement Act, 2013 Exchange, Assignement, Charge, Lien, Tenanciers / Sub-
• General Building Rules and Regulations Tenancies
• Lease of Immovable Property, Lease granted by Private
• Rent Control Laws: Sections pertaining to Occupancy
and Statutory Bodies - Impact of each on Valuation -
Rights of Tenants, Freezing of Rent and Protection Sections: 3, 5, 6, 7, 25, 53 and 53A of the Transfer of
against Eviction of Tenant and its effect on value of Property Act, 1882
property
• Laws Relating to Inheritance/Succession
• Right of Way and Section 52 - Licenses under the • Mohammedan: Muslim Personal Law
Indian Easements Act, 1882
• The Hindu Succession Act, 1956, the Hindu
• Salient features of the Real Estate (Regulation and Succession
Development) Act, 2016 and Real Estate Regulating
Authorities established under the Act • (Amendment) Act, 2005 (39 of 2005)
• The Indian Succession Act, 1925: Law of succession
for person other than Hindu and Mohammedan
• - Will & Testament, Succession Certificate
 Land Acquisition
• Land acquisition in India refers
to the process by which the
union or a state government in
India acquires private land for
the purpose of industrialisation,
development of infrastructural
facilities or urbanisation of the
private land, and provides
compensation to the
affected land owners and their
rehabilitation
Land Acquisition

• 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 re
settlement to the affected .
Land Acquisition

• Land acquisition is a process where

government take possession of land for public
purposes for its own use or for private entity
by paying compensation to its owner. Land
Acquisition Act was of 1894.
Land Acquisition
Land Acquisition
Land Acquisition
Land Acquisition
Land Acquisition
Land Acquisition
Land Acquisition
Land Acquisition
Land Acquisition
General Building Rules and Regulations

• CMDA COMBINED RULES

• INSPECTOR OF FACTORIES
(Factories Act 1948)
• SINGLE WINDOW SYSTEMS
(Approvals)
• REGULARISATION
• NOC
BUILDING RULES & REGULATIONS
BUILDING RULES & REGULATIONS OF LOCAL BODIES MINISTRY OF
URBAN DEVELOPMENT, GOVERNMENT OF INDIA
• In 2004 a Model Building Bye-Laws was issued by GOI for the
guidance of guidance of the State Govts, Urban Local Bodies,
Development Authorities to carry out the mandate under the 74th
Amendment of the Constitution which empowered local bodies to
prepare and enforce the Master Plan for orderly development of
urban areas.
• scope of master plan as defined by Town Country Planning
Organisation under 9 MOUD, is confined to proposals & allocation of
land for various purposes - residential, industrial, commercial,
recreational, public & semi public for guiding and regulating
development in urbanisable area over a period of time.
BUILDING RULES & REGULATIONS
• Zoning and Sub division regulations are a part of Development Control Regulations
(DCR) under Master Plan.
• They stipulate the densities of the development in various pockets of urbanisable
land through Floor Area Ratio (FAR) or Floor Space Index (FSI), maximum ground
coverage, maximum height permissible etc.
• Building Byelaws is a separate document governed by the regulations given in
Master Plan that guides and controls the setting, design and construction of the
buildings with due recognition for ventilation, light and built envelope
requirements from health and sanitation perspectives.
• The use, coverage, FAR setbacks, open space, height, number of dwelling units,
parking standards for residential premises on plotted development, group housing,
resettlement and up gradation and non-residential premises shall be as per the
provisions contained in Master Plan / Zonal Plan / Development Code or as per
simplified Development Promotion Regulations of the Urban Development Plan
Formulation and Implementation Guidelines and where these are silent on such
issues or which require interpretation the norms as decided by the Authority, shall
apply.
BUILDING RULES & REGULATIONS
• Master Plan and Zoning Rules Where the Town and Country planning Acts are
operational usually the Directorate of Town and Country Planning oversees
planning and development in urban and rural areas by way of issuance of Master
Plans prepared for the urban centres and notified rural areas by indicative Land
Use Plans.
• Such Directorates exist in almost all states and has a Town and Country Planning
Organisation (TCPO) under the Urban Development Department.
• The Town and Country Planning Organisation (TCPO), technical arm of the
Ministry of Urban Development, Government of India, is an apex technical
advisory and consultant organisation on urban and regional planning strategies
and monitoring of central government schemes and development policies.
• But master plans may not integrate well with plans of other authorities like the
Regional Development Authority, any Mineral Area Development Authority
(MADA) or the Mines Board.
BUILDING RULES & REGULATIONS
• Master Plan and Zoning Rules The Directorate of Town and Country Planning oversees planning
and development in urban and rural areas by way of Master Plans prepared for the urban centres
and notified rural areas by indicative Land Use Plans. Such Directorates exist in almost all states.
The Town and Country Planning Organisation (TCPO), technical arm of MOUD,GOI, is an apex
body on urban and regional planning strategies and monitoring of central government schemes
and development policies. The Zoning and Development Promotion Regulations Development
Authority has following zones
• 1. Residential Use Zone
• 2. Commercial Use Zone, including commercial along notified commercial roads; strip commercial
along roads as earmarked in the master plan and areas earmarked as Commercial use in the
Master Plan
• 3. Multiple Use Zone, including areas covered in Transit-Oriented Development (TOD) zone
• 4. Public and Semi - Public Use Zone
• 5. Work Centre Use Zone
• 6. Open Space Use Zone - Parks, Playgrounds, Exhibition grounds, Green buffer zone
• 7. Water bodies Use Zone - River, stream, Nallah, Storm Water Drains, Lakes
• 8. Transportation Use zone (Road, rail, Airport, Bus depots, Terminals, Workshops, Truck
terminals, Warehouses, Parking areas/Parking lots/Parking complex
BUILDING RULES & REGULATIONS
• 9. Special Reservation Use zone
• 10. Sites specifically earmarked as heritage conservation - buildings and
precincts/areas rocks & hillocks/Natural heritage
• 11. Defence / Military lands
• 12. Burial grounds, Cremation grounds etc 11
• 13. Special Area Development Plan (SADP)
• Residential Use Zone
• The residential areas are developed either as
• (a) Plotted development or
• (b) Group housing/flatted development. Density pattern i.e. (high, high medium,
low medium or low) are followed for working out development with respect to
size of the plot, no. of dwelling units on each plot, setbacks, FAR and no. of storeys
/ height of building. Municipal and social infrastructure as per the norms and
standards specified in the master plan are provided. Various sites/plots required
for social and municipal infrastructure are indicated in the layout plans.
BUILDING RULES & REGULATIONS
• Plotted Development -Layout plans for residential scheme are formulated
• (1) Sufficient light & air in buildings when constructed
• (2) Protection against noise, dust and local hazards
• (3) Sufficient open space for various family needs
• (4) Circulation & access is easy & safe from accident point
• (5) as far as possible, plots are of regular shape and size
• (6) Logically arranged in a systematic manner so as to give a regular pattern of development in the
form of row houses, detached & semi-detached houses and regular bungalow type plots. 'Group
housing means more than two buildings on a plot with one or more floors and with one or more
dwelling units in each floor.
• i) Boundary roads must BE minimum width of 12 metre.
• ii) FAR should be considered with reference to the width of public road abutting the property and
the FAR should be calculated after deducting the area reserved for parks, open spaces and civic
amenities.
• iii) The set-backs should be provided with reference to depth and width of total plot area. iv)
Coverage shall be with reference to total area of the layout.
• v) Distance between the buildings should be a minimum of half of the height of the tallest
building.
BUILDING RULES & REGULATIONS
• vi) 25% of total area is reserved for OSR spaces
• vii) Access to the building blocks in the area of group housing shall be as
follows:
• Access Less than 100 meters Road width 6 meters Access 100 to 200 meters
Road width 9 meters Access more than 200 meters Road width 12 meters
Other Specifications Included For: Hostel, Guest House, Boarding House And
Lodging House, Motels Community Centre, Industrial Plot, Flatted Group
Industry & Service Centre, Light And Service Industry, Extensive Industry,
Hospital, Health Centre/Nursing Home, Nursery & Primary Schools, Higher
Secondary School, College, Education And Research Centre (Large Campus-
Above 8Ha.), Auditorium / Community Hall, Religious Premises, Security
Services, Police Post, Police Station/Fire Post/Fire Station, Post And
Telegraph Office, Head Post Office, Public And Semi-Public Premises, Farm
Houses, Professional Activity
Rent Control Laws

TN Rent control ACT

Rent Control ACT

• One such act favouring

the rental property market
in India is the Rent Control Act.
• Rent Control Act was an attempt
by the Government of India to
eliminate the exploitation of
tenants by landlords.
• Rent legislation tends to
providing payment of fair rent to
landlords and protection of
tenants against eviction.
Rent Control ACT
Sections pertaining to Occupancy Rights • IN INDIA, Every state has its own rent control
of Tenants act.
• Act relating to the landlord’s / tenant’s rights
As a tenant, you have the right to live in a safe,
to fix the fair rent or evict the tenant on
secure and quiet environment that is managed
expiry of the notice of eviction.
in accordance with the law.
You also have a responsibility to take good care • Rent Control Act is common to the Landlord
of the property, pay the rent on time, and and Tenant, and any one of them can
adhere to the terms of your tenancy agreement • approach the Rent Controller for Fixation of
Rights of Land Lord fair rent.
• With regards to the rent payable by the
Right to evict a tenant
tenant or for eviction, judiciary will find an
Right to temporary recovery of possession amicable solution to fair rent or for eviction of
Right to increase the rent tenants. The Court takes technical assistance
from Qualified Engineers to fix the Fair rent or
To be advised of necessary repairs for building structural stability.
Rent Control Act
• These legislation are enacted to regulate rent • Premises exempted from provision of
payable be tenant. Many acts seek to prevent Tenancy Act
it from exceeding standard rent, regulate
repair and maintenance of the property and • Some premises are exempted from the provisions of
also regulate eviction of tenants. rent control/ tenancy regulation as per Tenancy Act.
Act does not apply to any premises owned by Central
• Rent Control Acts of different states favour or State Government, or Government undertaking or
the tenants. a local authority or other statutory body.
• The Rent Control Act applies on lease • Any tenancy created by the Central Government, or
agreements of at least 12 months, and hence any State Government in respect of the premises
an eleven month agreement helps landlords taken on lease or requisitioned by that Government.
to take a pre-emptive measure of avoiding Any tenancy where the lease with due consent of the
filing eviction suit against tenant to claim back tenant has been registered under the
possession of premise. • Registration Act, 1908 (16 of 1908), after the
• Sec 106 of Transfer of Property Act has commencement of this Act, and the fact of such
consent has been recorded in the instrument so
limited application where ever a State level
registered If premise is rented to a foreign mission or
legislation regulating rent and lease prevails. international agency; or a tenancy created by a
foreign mission or an international agency, either by
way of lease or otherwise
Rent Control Act
• Section-2 of The Tamil nadu Buildings • Section-4 of The Tamilnadu Buildings
Lease And Rent Control Act 1960, Lease And Rent Control Act 1960, enables
building means, any building or hut or the fixation of Fair rent and Principles laid
part of the building or part of the hut down in the Act has to be followed.
are to be considered for residential or • Fair rent for any Residential Building shall
non residential purposes which be 9% gross return per annum on the total
includes Garden, ground or out cost of such building.
• Fair rent for any Non Residential Building
• house, if any appurtenant to such shall be 12% gross return per annum on
building, the hut or part of such total cost of such building
building or hut let or to be let out
along with such building. Any • Total cost referred to in Sub – Sections (2)
& (3), shall consist of the Market Value of
furniture supplied by the Landlord for site in which the building is constructed,
such use of such building or hut but cost of construction of building and cost of
does not include a room in hotel or provision of anyone or more of the
boarding house. amenities as per Schedule-I as on the date
of application for Fixation of fair rent.
Rent Control Act
• Market value of land in which the • The cost of the construction of the
building is constructed and a portion building including the cost of internal
up to 50%, thereof of the vacant land water supply, sanitary and electrical
to be taken into account. If any vacant installations shall be determined according
land is available AS appurtenant to to the Rates adopted for the different
such building excess portion of the types of buildings by the PWD of Tamil
vacant land, is treated as Amenity nadu Government for the area concerned.
provided in the property. The cost of • The depreciation are calculated for the age
provision of Amenities stipulated in of the building at the rates specified in the
the Schedule –I shall not exceed: Schedule. (LINEAR METHOD)
• In case of Residential building – 15% • In case of building having more than one
floor the market value of the land has to
be proportioned to the number of floors in
that building.
Rent Control Act
• 1. In this act, land market rate is the • Even though the property value increases during this
deciding factor in determining the value of period, the fair rent adoption by the courts may not be
the equal to market rent, since the time taken by the court
for fixing the rent may occur after years. Hence, for
• property for rental purpose. In most of the rent controlled properties the rate of return on rents is
cases, the market rate is substantiated by low as per the Court decisions.
• the guideline rate and guideline rate will • 4. Eviction of tenant - the process is cumbersome and
be the authenticated rate in a court. will get delayed. Eviction of tenant may take a longer
Though time, even the landlord citing reason like building
deterioration, Non-payment of rent, Sub-letting
• there are many court judgments, stating building without due authority and permission.
that the guide line value / Circle Rate is • The tenant using for purpose other than for which it
not was leased, committing acts of property value
• the market value, in lower courts the reduction & utility, Tenant using for immoral or illegal
purpose, nuisance TO others also attracts eviction.
judgment is made as per GLV only. Also for, Even the tenant after given notice to quit, but
• 2. Rent will be on the petitioned date and he may not deliver vacant possession of premises to
not on valuation date. Inspection and the landlord in accordance to such notice. Hence, the
market value of the rent controlled properties will
• valuation of property may happen 1 or 2 have lesser value when compared to freehold
years after filing of petition. properties and are frozen for a longer period.
Rent Control Act
• Ownership rights for rent
• Ownership rights are not transferred in
rental agreements. He has to pay rent
periodically and cannot pledge the
property. He has no power to make
improvements in the property. He has only
the right to live during the tenancy period.
• The Rent Control Act will not be applicable
to licensed business premises. To avoid
complications and relief from the Rent
Control Act, the properties are given
under the type of leave and license as per
section 52 of the Indian Easements Act,
1882.
• The property right of enjoyment is not
transferred to the Licensee. The value of
licensed premises will depend upon net
profit of the business
 Types of Easement

Apparent
Continuous
Non –
Easement Apparent
Non-Continuous
The Indian Easements Act, 1882
• Section 4 "Easement" defined. – An easement is a right
which the owner or occupier of certain land possesses, as
such, for the beneficial enjoyment of that land, to do and
continue to do something, or to prevent and continue to
prevent something being done, in or upon, or in respect of,
certain other land not his own.
• Dominant and servient heritages and owners. –The land for
the beneficial enjoyment of which the right exists is called
the dominant heritage, and the owner or occupier thereof
the dominant owner; the expression
• "land" includes also things permanently attached to the
earth; the expression
• "beneficial enjoyment" includes also possible convenience,
remote advantage, and even a mere amenity; and the
expression "to do something" includes removal and
appropriation by the dominant owner, for the beneficial
enjoyment of the dominant heritage, of any part of the soil
of the servient heritage, or anything growing or subsisting
thereon.
The Indian Easements Act, 1882
• Illustrations • (d) A, as owner of a certain house and farm, has
• (a) A, as the owner of a certain house, has the right to graze his own cattle on B's field, or to
a right of way over his neighbour B's land take, for the purpose of being used in the house,
for purposes connected with the beneficial by himself, his family, guests, lodgers and
enjoyment of the house. This is an servants, water or fish out of c's tank, or timber
easement. out of d's wood, or to use, for the purpose of
• (b) A, as the owner of a certain house, has manuring his land, the leaves which have fallen
the right to go on his neighbour B's land, from the trees in e's land. These are easements.
and to take water for the purposes of his • (e) A dedicates to the public the right to occupy
household, out of a spring therein. This is
an easement.
the surface of certain land for the purpose of
passing and re-passing. This right is not an
• (c) A, as owner of a certain house, has the easement.
right to conduct water from B's stream to
supply the fountains in the garden • (f) A is bound to cleanse a water course running
attached to the house. This is an through his land and keep it free from
easement.
• obstruction for the benefit of B, a lower riparian
owner. This is not an easement.
The Indian Easements Act, 1882
• Section 5 - A continuous easement is one • (c) Rights annexed to A's land to lead water
whose enjoyment is, or may be, continual thither across B's land by an aqueduct and to
without act of man. A discontinuous
easement is one that needs the act of man draw off water thence by a drain. The drain
for its enjoyment. An apparent easement would be discovered upon careful inspection
is one the existence of which is shown by by a person conversant with such matters.
some
• These are apparent easements.
• permanent sign which, upon careful
inspection by a competent person, would • (d) A right annexed to a's house to prevent B
be visible to him. from building on his own land. This is a non-
• A non-apparent easement is one that has apparent easement.
no such sign. Illustrations
• (a) A right annexed to B's house to receive
light by the windows without obstruction
by his neighbour A. This is a continuous
easement.
• (b) A right of way annexed to a's house
over B's land. This is a discontinuous
easement.
The Indian Easements Act, 1882
• Section 6. - Easements for limited time or on
condition.- An easement may be permanent, • (b) Rights to advantages arising from situation. -The right of
or for a term of years or other limited period, every owner of immovable property (subject to law for time
being in force) to enjoy without disturbance by another the
or subject to periodical interruption, or natural advantages arising from its situation.
exercisable only at a certain place, or at • Illustrations of the Rights referred to
certain times, or between certain hours, or • (a) The exclusive right of every owner of land in a town to build
for a particular purpose, or on condition that on such land, subject to any municipal law for the time being in
it shall commence or become void or force.
voidable on the happening of a specified • (b) The right of every owner of land that the air passing thereto
event or the performance or non- shall not be unreasonably polluted by other persons.
performance of a specified Act. (Lease, • (c) The right of every owner of a house that his physical comfort
shall not be interfered with materially and unreasonable by
license) noise or vibration caused by any other person.
• Section 7. Easements restrictive of certain • (d) The right of every owner of land to so much light and air as
rights. -Easements are restrictions of one or pass vertically thereto.
other of the following rights (namely):- • (e) The right of every owner of land that such land, in its natural
condition, shall have the support naturally rendered by the
• (a) right to enjoy. -The exclusive right of subjacent and adjacent soil of another person.
every owner of immovable property (subject • Explanation. -Land is in its natural condition when it is not
to any law for the time being in force) to excavated and not subjected to artificial pressure; and the
"subjacent and adjacent soil" mentioned in this
enjoy and dispose of the same and all
products thereof and accessions thereto.
The Indian Easements Act, 1882
• illustration means such soil only as in its
natural condition would support the • (h) The right of every owner of land that the water of every
natural stream which passes by, through or over his land in a
dominant heritage in its natural condition. defined natural channel shall be allowed by other persons to
flow within such owner's limits without interruption and without
• (f) The right of every owner of land that, material alteration in quantity, direction, force or temperature;
within his own limits, the water which the right of every owner of land abutting on a natural lake or
pond into or out of which a natural stream flows, that the water
naturally passes or percolates by, over or of such lake or pond shall be allowed by other persons to remain
through his land shall not, before so within such owner's limits without material alteration in
quantity or temperature.
passing or percolating, be unreasonably
• (i) Right of every owner of upper land that water naturally rising
polluted by other persons. in, or falling on such land, and not passing in defined channels,
shall be allowed by owner of adjacent lower land to run
• (g) The right of every owner of land to naturally thereto.
collect and dispose within his own limits of • (j) right of every owner of land abutting on a natural stream,
all water under the land which does not lake or pond to use and consume its water for drinking,
household purposes and watering his cattle and sheep; and the
pass in a defined channel and all water on right of every such owner to use and consume the water for
its surface which does not pass in a irrigating such land, and for the purposes of any manufactory
situate thereon, provided that he does not thereby cause
defined channel. material injury to other like owners.
• Explanation. -A natural stream is a stream, whether permanent
or intermittent, tide or tide-less, on the surface of land or
underground, which flows by the operation of nature only and in
a natural and known course.
The Indian Easements Act, 1882
• Section 10. - Lessor and mortgagor.-Subject
• Section 8. Who may impose easements? - to the provisions of section 8, a lessor may
An easement may be imposed by any one impose, on the property leased, any
in the circumstances, and to the extent, in easement that does not derogate from the
and to which he may transfer his interest
in the heritage on which the liability is to
rights of the lessee as such, and a mortgagor
be imposed. may impose, on the property mortgaged, any
easement that does not render the security
• Section 9. Servient owners. -Subject to the
provisions of section 8, a servient owner insufficient. But a lessor or mortgag or
may impose on the servient heritage any cannot, without the consent of the lessee or
easement that does not lessen the utility mortgagee, impose any other easement on
of the existing easement. But he cannot, such property, unless it be to take effect on
without the consent of the dominant the termination of the lease of
owner, impose an easement on the
servient heritage which would lessen such theredemption of the mortgage.
utility.
The Indian Easements Act, 1882
• Section 52 "License" defined. -Where one
person grants to another, or to a definite
number of other persons, a right to do, or • 59. Grantor's transferee not bound by license.
continue to do, in or upon the immovable
property of the grantor, something which
• 60. License when revocable.-
would, in the absence of such right, be • 61. Revocation express or implied
unlawful, and such right does not amount
to an easement or an interest in the • 62 License when deemed revoked
property, the right is called a license.
• 63. Licensee's rights on revocation
• 53 Who may grant license.
• 64. Licensee's rights on eviction
• 54 Grant may be expressed or implied.
• 55. Accessory licenses annexed by law
• 56 License when transferable.
• 57. Grantor's duty to disclose defects
• 58. Grantor's duty not to render property
unsafe
The Indian Easements Act, 1882
• Characteristics of License • 6) The person who grants the license must be the
owner of the property. The other
• 1) No transfer of interest:- A licence is a
permission to do some act which, without • person who gets the permission must be a
such permission, would be unlawful. stranger or have no right in the property.
• 2) No interest in accretions :- A licensee has
• 7) Licence creates no duties and obligations upon
the person making the grant and is
no interest in the property and therefore,he
acquires no right by accretion • therefore revocable except in certain
circumstances expressly provided in the Act
• 3) Neither transferable nor heritable :- A
licence is neither transferable; nor heritable. • itself.
• 8) A licence is usually revocable by grantor, except
• 4) A licence is a matter purely personal in the two cases mentioned in the
between grantor and grantee.
• section 60 of Easement Act.
• 5) Section 52 of Easement Act does not
require any consideration, material or non • 9) A subsequent transfer of the property
material,to be an element of the definition terminates a licence.
of licence, nor does it require that the right • 10) A licensee cannot sue trespassers and
under the licence must arise by way of strangers in his own name.
contract or as a result of mutual promises. • 11) A license is terminated by death of either
party
Real Estate (Regulation&
Development) Act, 2016
 Real Estate and the housing sectors were highly unregulated
sectors

Lack of transparency in projects

No proper information about the builder

Lack of remedies available to the buyers

 Introduction
 The Real Estate (Regulation and Development) Act, 2016 is an Act of the Parliament of India which seeks
to protect home-buyers as well as help boost investments in the real estate industry.

 The bill was passed by the Rajya Sabha on 10th March, 2016

 By the Lok Sabha on 15 March 2016.

 The Act came into force from 1 May 2016 with 69 of 92 sections notified.

 The Central and state governments are liable to notify the Rules under the Act within a statutory period of six
months.

 Applicable to whole of India except Jammu and Kashmir

 Real estate regulatory authority (RERA) is the governing authority.

 The law is not Retrospective.

 PURPOSE
 An Act to establish the Real Estate Regulatory Authority for regulation and promotion of the Real
Estate sector.

 To ensure transparency in projects.

 To protect the interest of consumers in the Real Estate Sector and to establish an adjudicating
mechanism for speedy dispute redressal.

 To provide proper information about the Builder.

 SALIENT FEATURES
 It establishes the State Real Estate Regulatory Authority for that particular state as the government
body to be approached for redressal of grievances against any builder. This will happen once every
state ratifies this Act and establishes a state authority on the lines set up in the law.

 This law vests authority on the real estate regulator to govern both residential and commercial real
estate transactions.

 This law makes it mandatory for developers to post all information on issues such as project plan,
layout, government approvals, land title status, sub-contractors to the project, schedule for completion
with the State Real Estate Regulatory Authority (RERA) and then in effect pass this information on to
the consumers.

 The current practice of selling on the basis of ambiguous super built-up area for a real estate project
will come to a stop as this law makes it illegal. Carpet area has been clearly defined in the law.

 The maximum jail term for a developer who violates the order of the appellate tribunal of the RERA is
three years with or without a fine.
 SALIENT FEATURES

 Currently, if a project is delayed, then the developer does not suffer in any way. Now, the law ensures
that any delay in project completion will make the developer liable to pay the same interest as the
EMI being paid by the consumer to the bank back to the consumer

 The developer cannot make any changes to the plan that had been sold without the written consent of
the buyer.

 This puts paid to a common and unpopular practice by developers to increase the cost of projects.

 Lastly, every project measuring more than 500 square metres or more than eight apartments will
have to be registered with the RERA.

 The law mandates every builder to keep 70% of collection from every project in Separate Bank
Account.
 MAJOR PROVISIONS
The Major Provisions in the Act relates to following aspects:-

 REGISTRATION

 PROTECTION OF BUYERS

 REAL ESTATE REGULATORY AUTHORITY AND

APPELLATE TRIBUNAL
 REGISTRATION
Who is liable to get Registration from RERA?
 All commercial real estate projects where the land is over 500 square metres.
 All residential real estate projects where the land is over 500 square meters or eight apartments, to register with
the Real Estate Regulatory Authority (RERA) for launching a project.
 For on-going projects which have not received completion certificate on the date of commencement of the Act, will
have to seek registration within 3 months.
 Real estate agents who facilitate selling or purchase of properties must take prior registration from RERA.
 Such agents will be issued a single registration number for each State or Union Territory, which must be quoted by
the agent in every sale facilitated by him.
• What is the Process of Registration?
 Applicant has to file an application for registration with RERA in prescribed form along with prescribed fees and
documents.
 Application for registration must be either approved or rejected within a period of 30 days from the date of
application by the RERA.
 On successful registration, the promoter of the project will be provided with a registration number, a login id and
password for the applicants to fill up essential details on the website of the RERA.
What is the penalty for failure to get register?
 A penalty of up to 10 percent of the project cost or three years' imprisonment may be imposed.
 REGISTRATION

4. Consequence
Regulations are into force now 1. Debar the promoters from accessing
1. Time limit for registration
the its website in relation to that project For ongoing Projects – 3 months from
2. Specifying his name in list of defaulters commencement of this Act

3. Display his photograph on its website

and inform the other RERA. For new projects - 30 days
4. Direct the bank to freeze the account

Registration

3. Revocation
2. Exceptions
1. On complaint 1. Area of land < 500 Sq. Meters
2. Suo moto
2. No. Of apartments < 8
Where promoters makes default or
violates any terms or conditions of the
3.In case of Renovation/ Repair/Re-
approval or promoters involved in any kind
development
of unfair practice.
 PROTECTION OF BUYERS
 The Act prohibits unaccounted money from being pumped into the sector.

 As now, 70 per cent of the money has to be deposited in bank accounts through
cheques.

 A major benefit for consumers included in the Act is that builders will have to
quote prices based on carpet area and not super built-up area

 Carpet area has been clearly defined in the Act to include usable spaces like
kitchen and toilets.
 REAL ESTATE REGULATORY
AUTHORITY AND APPELLATE TRIBUNAL

 Establishment of State-level Real Estate Regulatory Authorities (RERAs) to regulate

transactions related to both residential and commercial projects

 RERAs will ensure timely completion and handover of projects.

 Appellate Tribunals will now be required to adjudicate cases in 60 days as against the
earlier provision of 90 days

 Regulatory Authorities has to dispose of complaints in 60 days while no time frame was
indicated in earlier Bill.
 Hits & Misses of Real Estate Act
For Consumers
HITS MISSES
• Increased assertion on the timely completion of • The timelines of approvals by regulatory
projects and delivery to the consumer. authorities have not been defined. Any delay
• A step towards safeguarding their investment, in approvals from regulatory authorities could
as 70 per cent of the sales receipt will now be
locked in an escrow account. impact buyers as well.
• An increase in the quality of construction due • The Bill may lead to slightly higher prices of
to a defect liability period of five years. properties due to the reduced competition.
• Balanced builder-buyer agreements.
• New project launches might be limited as
• Faster dispute resolution mechanism through developers may not be able to launch without
dispute settlement forums and appellate
tribunal. obtaining approvals, which could take two to
• Sale on the carpet area to help improve three years.
transparency.
• An increasingly-regulated broker environment.
• Greater visibility into the developer’s delivery
track record.
 Hits & Misses of Real Estate Act
For Developers
HITS MISSES
• Increased scope for eliminating casual • An additional layer of approvals may be
operators, leading to the better organization introduced against the extended list of
of the sector. approvals already required for projects.
• Minimum standards of governance and • No provision to rationalize the number of
accountability have now been set to an approvals required for a project or expedite
extent, and there’s potential for driving approvals through a single window
standardization and professionalism in the mechanism.
sector.
• Increased reliance on external capital to
• Greater visibility into the developers’ delivery achieve high growth.
performances, segregating the established • Possible impact on joint venture
and casual operators. arrangements.
• Higher investment in the sector and a • Potential delay in cash-flow realizations from
possible reduction in the cost of funds, projects.
leading to a lowered cost for the end users.
Drivers and Growth for Real Estate
and Construction
 Rising
Tourism

Rise Of
Middle
Real Decline of
Joint
Class Estate Families

Easy
Availability
of Finance
 Fiscal
Policy

Real Strong
Rising Demograp
FDI Estate
hics

Rise of
Middle
Class
 First
Time
Buyers

Medical Real International

Tourism Estate Tourism

Development
of new
Stream of
Business
Overview of India Infrastructure
 Special Economic Zones

OBJECTIVES

Generation of
Promotion of exports
additional economic
of goods and services.
activities.

Promotion of
Creation of Development of
investments from
employment infrastructure facilities
domestic and foreign
opportunities. in the country.
sources.
 Govt. Initiatives and Policy

Range of
There has been a Government
drastic curtailment benefits &
Liberalization of
in restrictive Reforms in the incentives
FDI rules and the
policies such as Integrated including
emergence of real
the Urban Land Township Policy. residential tax
Ceiling and estate funds. breaks and the
Regulation Act. Special Economic
Zones.
Major Players in Real Estate Sector

THE
BIG
FIVE
DLF Group 

Founded in 1946
DLF Group is one of the biggest real estate giants
 Built many high-quality buildings across the country, specifically in
Gurgaon
 Tied up with Hilton Group to build whopping 100 hotels in India over the
next few years.
 In current expansion plans, DLF has over 425 million sq. ft. of
development across its businesses, including developed, on-going and
planned projects.
 Spread over 32 cities, mostly in metros and key urban areas across India

Financials of DLF
 DLF is the market leader in this sector with net profit of 1547 cr.
 It was way lower than its last year profit by more than 1000 cr.
 It was well supported by the timely launch of IPL.
 The share of this co. touched the all time high of 1227 in dec. 2007 which
was just 6 months after its issue and now trading at 337.
ANSALS 


Founded by Lala Chiranji Lal Ansal
By far most dominant activity of Ansals has been Real Estate Promotion & Development
 company has several landmark high-rise commercial building like Statesman House,
Ambadeep, Antriksh Bhawan, Tolstoy House, Indra Prakash, Navrang House and Ansal
Bhawan
 Ansals have also completed several residential buildings like Gauri Sadan, Upasana at
Hailey Road & Dhawan Deep at Jantar Mantar road, all in the heart of New Delhi at
Connaught Place.
 There is the most prestigious “Ansal Plaza” Shopping Mall associated with its work

 Also it has made elite townships, Sushant Lok and Palam Vihar in Gurgaon and several other
places all over the country.

Financials Of Ansals API

 Their profit declined by 81.24% in the last financial year over the last year.
 This is one of the badly hit company by the economic slowdown.
 569 is the all time high of this company in 2006 and now trading at just 10% of its all time
high.
Parsavnath Developers
• It was incorporated on July 24, 1990 under the
Companies Act, 1956 as Parsvnath Developers
Limited.

• With more than two decades of experience in its

repertoire, the group has already stamped its
presence already in seventeen states and going
Pan – India.

• It has made various developments in areas like

GURGAON, Noida, South Delhi.
Unitech Group
 Plans to invest US$ 720 million in building hotels in the country
 Its partner for this venture is Marriott International.
 Carved a niche for itself in India with its sprawling properties and projects
in Bangalore, Gurgaon, Noida, Greater Noida and Kolkata
 Unitech Group took over projects in International areas as well.
 Actively involved in construction projects of power plants, expressways,
highways, transmission lines, classrooms, amusement parks.
 Radisson Hotel, New Delhi has won accolades for its wonderful
infrastructure, astounding interiors, ideal location and extra ordinary
facilities for the distinguished customers.

 Rohini Amusement Park is also a creation of Unitech Group.

 The commercial complexes like Global Business Park, Signature Towers,

Unitech Business Park and Unitech Trade Center and the launch of
Millennium Plaza & Infocenter in Gurgaon have made Unitech Builder
earn a good reputation in the industry.
K.Raheja  Raheja Developers Limited, (RDL), formerly Raheja Developers
Private Limited, is an Indian real estate development company with
its headquarters in Delhi, India.
 K Raheja corp. has been the torch bearer of the green cause for the
real estate industry, dating back to 2007 when it signed an MOU
with CII –Green Building Council.
 In 2008, Raheja Developers planned to build a Special Enterprise
Zone (SEZ) in Gurgaon at an estimated cost of $660M US.
 The development was to be on a 255-acre (103 ha) site but the
project did not advance.
 In a Gazette Notification of the Government of India on 29 January
2014 the Raheja SEZ was denotified, and the whole SEZ project
scrapped
BARRIERS IN GROWTH OF REAL ESTATE

Skill Shortage.

Non Availability of Statistics.

Overvaluation of Property.

Highly Fragmented.

Lack of Transparency.
IMPACT OF RECESSION ON REAL ESTATE

Incompletion of MEASURES TAKEN BY UNITECH

Cash
previous
starvation. QIP issuance to reduce debt.
projects.

Reduced promoter’s stake from 64% to 51%.

Less demand in Increased confidence with customers on project

Bad Debts.
all segments. delivery.

Major Strategic restructuring.

MEASURES TAKEN BY DLF

Launched Payment of short Terminated Sale of

affordable term debt by projects with properties for Cost reduction
housing project. raising long term long gestation liquidity through tight
cash flow.
debt. period. preservation.
IMPACT OF BUDGET

Overall Impact considered to be marginally positive.

Infrastructure investment to be raised over 9% of GDP.
Funding pressure on construction companies to be eased by PPP.
PPP infrastructure projects to be refinanced upto 60% through IIFCL.
Rs 39.7 billion allocated for rural housing schemes.
Focus on providing housing to people of economic weaker section & lower income
group.
Opportunities
for
Registered
Valuers
 Compounding Drafting of
Advisory
of Offence Various
role
Documents

Opening of Status Report

Bank Accounts of Every Registration
& Deposits Project
As per Section 56 of the act, a Company Secretary holding certificate of practice
has a can appear on behalf of applicant or appellant before Appellate Tribunal or a
Regulatory Authority or Adjudicating Officer as the case may be.

Hence a Company Secretary holding certificate of practice can –

Represent a person (promoter) before any real estate regulatory authority for
registration of real estate project,

Represent a person before real estate appellate tribunal.

Represent a person before any other competent authority for any other
purpose under Real Estate (Regulation and Development) Act, 2016.
 The passing of Real Estate (Regulation and Development) Bill, 2016 has
opened a new opportunity for Company Secretaries holding Certificate of
Practice in terms of consultancy services.
 By becoming an expert in the act he can indulge in providing advice in
respect of -
a. Various applicable provision on particular real estate project;
b. Registration and extension procedure of real estate project with
competent authority;
c. Various obligation, functions and duties of promoter in a real estate
project;
d. Penal Provisions under the act.
 A Company Secretary holding certificate of practice as well a Company
Secretary in employment in Promoter Company can assist a Promoter in
registration of real estate project with the real estate Regulatory Authority
established under the act.
Close to $7 billion to $8 billion of venture capital expected to flow into Indian
real estate market.
A significant increase in project execution through Public- Private-Partnerships.
More demand for office and industrial space.
Current levels of investments in infrastructure are not sufficient to bridge the
gap between demand and supply.
END
Transfer of property Act,1882

K.Sundarapandian, MRICS
IIV-RVF – On line class
Thanks to my Prof -
Dr.V.Sivaramasethu (Annamalai
Univewrsity) for the Notes
INTRODUCTION

• Transfer of property Act Came into force 01.07.1882

• This Act applies for both immovable and movable property and also
to tangible and intangible properties
DETAILS OF PROVISIONS

• Part I relating to the general principles of transfer of property

• Part II relating to specific types of transactions sale, mortgage, lease,
exchange, gift, charge and actionable claims.
• General principles of Transfer Sec 5 to 53A
• Sale - Sec 54 to 57
• Mortgage & Charge -Sec58 to 104
• Lease -Sec 105 to 117
• Exchange - Sec 118 to 121
• Gifts -Sec 122-129
• Actionable claims –Sec 130 to 137
OBJECTIVES
• The Transfer of Property Act of 1882 pertained to British India and
outlined the legal procedures for transferring property from one
person to another.
• Under this Act transferring of property needed to occur between
living people, needed to happen in the present or future and could be
between single people or groups of people. Transferable property
could be movable or immovable.
IMMOVABLE PROEPRTY
Definition:

• Immovable property does not include standing timber, growing crops

or grass (Sec 3 T. P Act)
• Immovable shall include land , benefits arise out of land, things
attached to land (General clauses Act )
General principals of transfer of
property
Transfer
• An act by which a living person conveys property in the present, or in
future to one or more living persons or to himself and to himself
and one or more living persons. (Sec 5)
A to B , C and D
A to A (trust)
A to himself and to any number of living persons
T. P Act is not applicable
• Court sale
• Wills
• Partition or family settlement
• Gift to idol
• Surrender or release or relinquishment
Properties cannot be transferred under T.P
Act
• Spes successionis (chance of succession)
• Right to re entry
• Easement right
• An interest in property restricted to enjoyment of owner
• A right to future maintenance
• Public office cannot be transferred
• Mere right to sue cannot be transferred
• Stipends allowed in military naval , army, civil pensioners
• No transfer opposed to nature of interest – unlawful act (Sec 6)
Who can transfer property
• Any person who are competent to contract
• Authorized to dispose off the property(Sec 7)
How to transfer
• If the value of property is above 100, then only by registered
instrument.
• If the property is tangible property, and of less than Rs. 100, by
delivery only.
• If the property is intangible – only by registered instrument. (Sec 9)
Attestation
• At least 2 persons as witness
• Each must see the executants sign and sign a mark to that effect.
• It is not necessary that both are present at the same time – they may
be at different times also.
• Animus attestandi : the attestants must put the signature with an
intention to attest.
Condition restraining alienation
• The power of alienation of the transferee cannot be restrained
• If the transferor prohibits the transferee from alienation by putting a
condition or limitation such a condition or limitation is void(Sec 10)
• Illustrations: A sells his house to with a condition that B cannot transfer this
house to any one except C. The condition is void because C may be chosen
as a person who may never purchase the property

• Exception
Lease is an exception for the above rule
A deed dedicating property to deity contained a condition absolutely restraining
transfer is valid
Condition restraining Enjoyment
• If the transferor restraining the mode of its enjoyment the condition
is void and the transferee is not bound by the condition
• It is applicable only where an absolute interest or ownership has been
transferred. (In case of Sale , gift and exchange)
• Exception
• A condition or direction restraining the mode of enjoyment may be made by the
transferor provided it is for beneficial enjoyment of transferor’s own adjoining property
Difference between Sec 10 and Sec 11

• Section 10 • Section 11
• applicable to the transfers of • It is applied to transfers of only
absolute interest as well as absolute interest (ownership)
limited (partial) interest • It refers to enjoyment
• It refers to a restraint on
alienation
Transfer to unborn person

• Transfer cannot be made directly in favour of unborn person (Sec 13)

Rule against perpetuity
• Till the unborn person comes to existence there should be a transfer
in favour of living person
• Transfer to ‘A” for life and then to A’s son valid

• The transfer should not postpone the vesting of the property in the
unborn person beyond the attainment of the majority (Sec 14)
• Any number of living person +18 years
The maximum limit fixed for postponing the
vesting of property
• Life or lives in existence at the date of
transfer +minority of the ultimate beneficiary + with addition of the period of
gestation provided gestation actually exists (i.e ultimate beneficiary is
actually in mother womb at the death of the last person) (Sec 14)
• Where the transferor provides that the transfer shall take effect upon
the happening of an event of must nature which is bound to occur in
future here the nature of interest of the transferee is a vested
interest (Sec 19)
• Ilustration : A makes a gift of his house to B. He simply executes the gift deed but does not
specify any date on which the ownership to be transferred .The interest B is vested interest
• Nature of vested interest
 Present fixed right
 Transferable and heritable interest
 Time of vesting of interest
Contingent interest
• Contingency means uncertain future event
• Where the transferor provides that the transfer shall take effect upon the happening of an event
that may or may not happen here the nature of interest of the transferee is contingent.(Sec21)
• Illustration
• A makes a gift of his property to B when he attains the age of 18 years or marries under that age with the condition neither
attains that age nor marries with the consent of C the property goes to D . B and D both take a contingent interest in the
property
Nature of interest
• Future possible interest
• Not heritable
• Transferable interest
Vested and Contingent Interest
Conditional Transfer
• Transfer of property with certain conditions is called conditional
transfer
• When a property is transferred conditionally, The transfer is subject
to conditions or limitations.
• The legal effect of the transfer may vary according to conditions (Sec
25)
•
Three types of conditions
• Condition precedent: Conditions which is required to be fulfilled
before the transfer of property taken place. It is prior to transfer

• Condition Subsequent: Condition which is required to be fulfilled

after the transfer of property has already taken place

• Collateral condition :condition which is required to be fulfilled

simultaneously with transfer
Condition Precedent
• Where transfer is dependant on any lawful Condition precedent its
substantial compliance is sufficient for the transfer.
• Here the rule is that a conditional precedent is to interpreted liberally.
(Sec 26)
• Example ‘A’ makes a gift of his house to ‘B’ if ‘B’ marries ‘C’
• Gift in favour of ‘B’ shall take effect only if ‘B’ marries ‘C’
• If B does not marry the house cannot be transferred in his favour
Void condition precedent
• Condition precedent is void if its performance is either impossible or
unlawful.
The following conditions are void
• Impossible to perform
• Unlawful
• Forbidden by law
• Defeats the provision of the law
• Fraudulent
• Involves any injury to person or property
• Opposed to public policy
 Condition subsequent
• Conditions which is required to be fulfilled after the transfer of property (Here
Transfer already taken place)
• Here interest of the transferee which is already been vested in him is affected by
fulfillment or non fulfillment of that condition
• Illustrations:
• A transfer Farm Land to B provided he shall go to England . If B shall not go to
England with in the period prescribed after the date of transfer his interest in the
form land will cease
• Condition subsequent must be performed strictly.(Sec 29)
• The terms of condition must be clear and must also be fulfilled clearly.
• Ignorance , illness or neglect cannot be taken as a non compliance of condition
subsequent.
Collateral conditions
• The condition to be fulfilled simultaneously with transfer

• Example
• A leases his property to B so long as B resides in the house of A . The
conditions is collateral.
• The transfer(lease) remains in operation only till B fullfills the
condition.(he continues to live With A)
• Election means choice
• it is a obligation to choose between two inconsistent alternative rights
• If through one instrument, you have two transactions – then you have to accept
both the transactions or none. You can’t accept one and reject other.(Sec 35)
• Example: ‘The land in the Chidambaram is the property of ‘C’ and worth Rs 800/-
A by instrument of gift proposes to transfer it to ‘B’ giving by the same
instrument Rs 1000 to ‘C ‘. ‘C’ elects to retain the land. He forfeits the gift of Rs
1000/-
•
Essentials of Doctrine of election

• Persons Who transfer a property is not the owner

• Through the transfer the transferor confers certain benefits upon the
owner of the property
• Two things
a. Transfer of property
b. Conferring of the benefit
forms part of the same instrument
Limited power of transfer

• Transfer by person authorised only under certain circumstances to

transfer
• Transferor has limited power of transfer in respect of immovable
property .His power of transfer is limited.
• The authority to transfer depends on existence of only specific
circumstances.
• He cannot transfer except under those circumstances (Sec 38)
• Example: The guardian of minor’s property, the manager (karta) of joint family have limited
authority of transfer.
Restrictive covenant
• Covenant means written agreement or contract with respect of
property.
• If a transferor imposes a negative covenant then such covenant is
binding and enforceable also against transferee provided
• The covenant is for more beneficial enjoyment of transferors own land
• The subsequent transfer is for value the assignee has notice of the
covenant
•.
Transfer by Ostensible owner (benami transaction)
• Ostensible owner is a person who has all the indications of ownership
and looks like a owner of a property but is not real owner.
• Benami transaction means any transaction in which property is
transferred to one person for a consideration paid or provided by
another
• It provides where a property is transferred in the name of another,
the person in whose name the property is held shall become the real
owner.(Benami transaction Act,1988)
Test for Ostensible owner
• Source of purchase money (i.e who paid the price?)
• Nature and possession after the purchase( who had the possession)
• Motive for giving benami colour to the transaction (why the property was purchased in the
name of other person?)

• Relationship between the parties (whether the real owner and the ostensible owner were related to
each other or were strangers)

• Conduct of the parties in dealing with the property . (who used to take care of and had
control over the property)

• Custody of the title deeds

• Here the burden of proof lies on the person who claims that he is the real
owner
 Essential conditions for application of section 41

• There is a transfer of an immovable property by ostensible owner

with express or implied consent of the real owner
• The transfer is for consideration
• The Transferee acted in good faith
• The transferee has exercised reasonable care in finding out the
transferors power to make the transfer.
• The protection bonafide transferee for value under the section is not limited to first transferee only every
subsequent transferee is entitled to the protection .
Doctrine of feeding the grant by estoppel
• It is the case of fraudulent transfer.
• The transferor doesn’t not have ownership, yet he transfer for
consideration.
• Later on the transferor gets the ownership and
• the transferee has not yet rescinded the contract.
• The transferor is bound to give the property to the transferee.(Sec 43)
 Joint Tenancy
• Joint tenancy is when two or more people own equal shares of a
home. If an owner dies, ownership is transferred to the remaining
owner(s)
• Joint Tenancy implies Unity of titles as well as unity of possession
• If the co owners hold property, upon the death of any one of them
his share goes to the survivors (Sec 45)
Tenancy in common
• Tenancy–in-common is when two or more people own a home. Ownership does not have to be
equal. If an owner dies, ownership is transferred to the person(s) ...
• Tenancy in common implies the unity of possession
• If the co owners hold it as tenants in common, upon the death of any one of them his share
goes to the heir or representatives. (Sec 45)
• Doctrine of lis pendens
• Lis = dispute Pendens = pending
• During the pendency of a suit or
inquiry, or a litigation, a property cannot be transferred.
• The suit must be related to such property.(Sec.52)
Fraudulent Transfer
• Transfer is made with bonafide intention
• If transfer is made with (Malafide)fraudulent intention (with
intention defeat the creditor or any interest of subsequent
transferee) is not valid

• Essential
• Transfer of immovable property
• Made with intent to defeat the creditor
• Shall be voidable
Doctrine of part Performance
• It is an equitable doctrine – Equity of part performance
• A person has taken the possession of an immovable property on the basis of
contract of sale either performed or is willing to perform his part of contract
then he cannot of ejected on the ground the sale is unregistered (Sec 53 A)

• After 2001 in sec 53 A –(the contract though required to be registered has not been registered) Removed
• After 24.09.2001 .The contract of the transfer of immovable property with
consideration as provided in 53A is now compulsorily registrable document.
• Sec 17(1A) (to defeat the claim un registered document is not used) and Sec 49 (unregistered document
cannot be an evidence in part performance) registration Act also amended .
Thank you