India Property Ownership

India has the Registrar of Assurances for registering real property. Most of the property and ownership information are available in this office.

India Transaction Information

As the regulations in this sector is under development, the transaction information might not be the latest or accurate. It depends on whether the agent or broker is registered or not.

India Trade Associations

NAREDCO (National Real Estate Development Council)
First Floor, 8 Community Centre,
East of Kailash, New Delhi - 110065

Phone : 91-11-26225795
Fax : 91-11 26225796
Email : naredco@naredco.org

NHB (National Housing Board)
Core 5 - A
India Habitat Center
Lodhi Road
New Delhi - 110003
Email: info@nhb.org.in

India Land Rights

In India there are two types of interest: Fee Simple(or Fee Simple Absolute) and Life Estate. The characteristics of fee simple and life estate in India are similar to those in the United States. India has very unique tenancy law, which works against the landlord and makes eviction of tenants virtually impossible. As a result, many apartments are left vacant. Owners of apartments prefer to leave them empty rather than risk tenants refusing to vacate them. Under Act, a lease of immovable property from year to year or for any term exceeding one year, or reserving a yearly rent, can be made only by a registered instrument executed by both lessor and lessee. Other leases may be made by oral agreement accompanied by delivery of possession. Under the Income Tax Act, sale, lease or other disposition (except gift) of immovable property for consideration mentioned in document exceeding *Rs. 1million. In certain specified metropolitan areas, prior permission is required of tax authorities. Different areas have different ceilings specified.

India Forms of Ownership

In India, both Tenancy in Common and Joint Tenancy of immovable property are recognized. However, Tenancy in Common is more common.The characteristics of tenancy in common and joint tenancy in India are similar to those in the United States.

India Real Estate Info Summary

A transfer by way of sale or exchange in case of immovable property of value of Rs. 100 and upwards, or in the case of a reversion can be made only by registered instrument. Other such transfers may be made by delivery.

For the transfer of property in India usually the following things are taken care of :
The property titles in India are under two headings – Leasehold and Freehold. Leasehold properties are normally sold through an agreement to sell on Power of Attorney. The buyer usually checks for clear title or Power of Attorney in the sellers name from all the owners of the property, whether the land/property is approved or not, and whether all the required Govt. clearances for the type of property are in place or not. In case the same are found in order, the deal is registered in a Court after paying the stamps/court fees, which usually ranges from 6% to 14%. Alternatively, of late both the parties go to the Registrar’s office and verify everything and sign the documents to avoid any litigacy.

Land Use & Control:

Under Acts, there is a prescribed maximum limit or ceiling on holding of agricultural land to provide for more equitable distribution amongst peasantry. Under the Urban Land Ceiling and Regulation Act, 1976, no person can hold any vacant land in excess of the ceiling limit prescribed under the Act. The ceiling limit varies between 500 square meters and 2,000 square meters depending upon the area where the land is situated. Land on which buildings are constructed are not covered by Act.

The Act does not apply to land held by: (1) Government, (2) armed forces, (3) government banks, (4) public charitable or religious trusts, (5) cooperative societies, (6) educational, cultural, technical institute, (7) foreign state for purpose of its diplomatic consular mission, or (8) any international organization for any official purpose.

India Mortgages & Financing

In India legal mortgage in which immovable property is transferred for securing a loan, debt or pecuniary liability of Rs. 100 or upwards can be effected only by a registered instrument signed by mortgagor and attested by two witnesses. Other such mortgage may be made by delivery. Legal charge is created when transaction does not amount to a mortgage.

According to a 2006 article, "The effective interest cost of a 2 million rupee, 15-year mortgage fell 67 percent from 2000 to 2005. However, 30 percentage points of this reduction can be attributed to tax concessions that the government has made to encourage home buying."

The major lenders in the housing finance industry are housing finance companies, commercial (local as well as foreign) banks, cooperative banks and other non-banking financial companies (NBFCs). However, despite significant growth in this industry, financing through the organized sector accounted for only 25% of the total housing investment in India as of 2003 (Source: LIC Housing finance).