How does this explainer help the user?
As the owner of land or housing property, there are various ways in which you can utilize a property as a valuable asset, including selling or renting/ leasing out the property, or using it to seek credit from banks. The Transfer of Property law governs such transfer of immovable property, including land and housing, from one living person to another. A transfer can be by way of sale, lease, mortgage, exchange, gift or actionable claim (entails the right of an individual to raise an issue before courts of law because he/she has an interest/claim). Mostly, such transfers are done through written agreements, the law also allows for a possibility of oral agreements. However such oral agreements may not be very effective.
In this explainer, we outline some of the ways in which you can use your immovable property effectively for monetary gains. For the purposes of this explainer, property includes immovable property, which can be residential, commercial, or agricultural/ plantation land and built-up projects.
What are the laws being discussed?
This explainer deals with the purchase and sale of immovable property in India and various modes of acquisition of property. The same is governed by the Transfer of Property Act, 1882 (“TP Act”); the Foreign Exchange Management Act,1999 (“FEMA”) and FDI Master Circular issued by the Reserve Bank of India on the subject matter. The explainer also aims to discuss foreclosed properties (property, which was kept as collateral for a home loan or mortgage but acquired by the money lender due to non-payment of three or more Equated Monthly Installments (EMIs)), the purchase of which is governed by the Securitisation and Reconstruction of Financial Assets and Enforcement of Securities Interest Act, 2002 (“SARFAESI Act”).