Legal Advice

Legal Guidance for Real Estate Investment

RERA compliance, stamp duty, title verification, capital gains tax, and NRI property laws. Everything you need to know before investing.

RERA Compliance: Your Protection Framework

RERA (Real Estate Regulation and Development Act) is India's most important real estate protection law. Every commercial property investment must be RERA-verified before you commit funds.

RERA Verification Checklist

Project registration with RERA authority
Promoter and builder credibility verification
Escrow account status (funds held in bank, not with builder)
Quarterly Progress Reports (QPRs) filed on time
Approvals: Sanctioned plan, occupancy certificate, fire safety NOC
Booking terms: Transparent, no hidden charges
Sale deed execution timeline
Possession and handover clause clarity

Title Verification: The 30-Year Check

Before any property purchase, we verify the complete ownership history going back 30 years. This protects you from fraudulent claims, disputed ownership, or encumbrances.

Mother Deed

Original land ownership document tracing back to government or original owner

Authority Lease

Permission from land authority (if applicable) to construct and use the property

Encumbrance Certificate

Proof that the property is free from mortgages, liens, or legal disputes

Completion Certificate

Proof that construction is complete and meets all building codes

Occupancy Certificate

Official permission to occupy and use the property

Stamp Duty & Registration: Legal Ownership

Stamp duty and registration are mandatory to legally transfer property ownership. Duty is computed on the higher of the actual transaction price or the local circle rate.

Stamp Duty (Uttar Pradesh)

• Male buyer: 7% of property value
• Female buyer (sole owner): 6% (concession up to ₹1 crore)
• Joint ownership: 6.5% of property value
• Paid to state government; non-negotiable

Registration

• Flat 1% of property value
• Creates legal title in your name
• Registered with Sub-Registrar
• Essential for resale and mortgage

Verify precise calculations via the Stamp and Registration Department, Uttar Pradesh official portal.

Capital Gains Tax: When You Sell

When you sell a property, the profit is taxed as capital gains. The rate depends on how long you held the property. Rules were significantly updated in the Union Budget.

Short-Term Capital Gains (STCG)

Held 24 months or less:

• Profit added to your total income
• Taxed at your applicable income tax slab rate
• No flat rate — depends on your income bracket

Long-Term Capital Gains (LTCG)

Held more than 24 months:

• 12.5% flat — no indexation (property bought after July 23, 2024)
• Property bought before July 23, 2024: choose lower of 12.5% without indexation OR 20% with indexation
• Indexation benefit fully removed for new purchases

Quick Reference: Immovable Property & Unlisted Assets

Gain Type	Holding Period	Tax Rule
STCG	24 months or less	Slab rate (regular income tax)
LTCG (after Jul 23, 2024)	More than 24 months	12.5% flat, no indexation
LTCG (before Jul 23, 2024)	More than 24 months	Lower of: 12.5% (no indexation) OR 20% (with indexation)

NRI Property Investment: Key Legal Points

NRIs can invest in Indian real estate, but there are specific regulations to follow.

What NRIs Can Buy

Commercial property, residential property, land (with restrictions in some states)

What NRIs Cannot Buy

Agricultural land, plantation property, farmland

Documentation Required

PAN, passport, visa, NRE/NRO bank account, power of attorney for remote transactions

Repatriation Rights

Sale proceeds can be repatriated to NRE account and transferred abroad

Tax Implications

Same as resident investors; capital gains tax applies on sale

Need Legal Guidance for Your Specific Deal?

Every property has unique legal considerations. Get expert guidance tailored to your situation.

Book Legal Consultation