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There are many laws governing various aspects of real estate in India dates back to the 19th century and major amendments to existing laws are required to make them relevant to modern day requirements. The Central laws governing real estate include.

Registration Act, 1908

The purpose of this Act is the conservation of evidence, assurances, title, publication of documents and prevention of fraud. It details the formalities for registering an instrument.

Stamp Duty

There is a direct link between Registration Act and Stamp Act. Stamp Duty needs to be paid on all documents that have to be registered and the rate varies from state to state.

Rent Control Act

Rent legislation in India has been in existence for a very long time. Rent control by the government initially came as a temporary measure to protect the exploitation of tenants by landlords after the Second World War. However these rent control acts became almost a permanent feature. Rent legislation provides payment of fair rent to landlords and protection of tenants against eviction. Besides, it effectively allows the tenant to alienate rented property.

Property Tax

Property tax is a levy charged by the municipal authorities for the upkeep of basic civic services in the city. In India it is the owners of property who are liable for the payment of municipal taxes generally, the property tax is levied on the basis of reasonable rent at which the property might be let from year to year. In the case of un-let proper-ties, the rental value is to be estimated on the basis of letting rates in the locality.

Transfer of Property Act

Transfer of property between two living persons in India is mainly governed by the Transfer of Property Act 1882. The Act refers to certain kinds of transfer of property, such as sale of property, lease or renting of property, mortgage of property, gifting property and exchange of property. Apart from these, there are certain other transactions which resemble transfer of property, though they do not actually amount to a transfer, such as partition, availing paying guest accommodation, creation of a charge etc. Also closely connected with transfer of property are the concepts of registration and payment of stamp duty and drafting of deeds. Property transactions generally involve huge amounts of money and so, it is advisable to know the relevant laws and procedures and take proper precautions.

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