Professional Documents
Culture Documents
PGP-CM-MODULE-13
ASSIGNMENT NO: 04
COURSE TITLE:
LEGAL FRAMEWORK
FOR CONSTRUCTION
The main players in the real estate market include the following:
i. The landlords
ii. The builders & developers
iii. Construction contractors
iv. Real estate agents
v. Investors
Real estate laws are the rules and regulations that regulate every aspect of a
real estate property transaction. Intricate requirements are involved in every
real estate transaction be it acquisition, selling, transfer, or foreclosure of a
property. Real estate laws are in place to safeguard the rights in the property
owned or purchased or sold.
Indian contract Act, 1872: This legislation(law) specifies when a party can
be said to have the capacity to contract. A contract pertaining to reality can
be entered into, among others, by an individual (who is not a minor or of
unsound mind), partners of a firm, a corporate body, a trust, a sole
corporation, the manager of a individual family and a foreigner. All the
requirements of a valid contract, i.e. consideration, intention to contract and
validity under the law of the land must be satisfied.
The Indian evidence act, 1872: Under the act, whenever the status of any
person as the owner of a piece of land / immovable property of which he is
shown to be in possession is questioned, the burden of proving that he is not
the owner lies on the person who asserts that he is not the owner.
Transfer of property act, 1882: This Act mainly deals with transfer of
immovable property by act of parties like sales of immovable property,
mortgages and charges, leases of immovable property, exchanges, gifts and
actionable claims.
It does not apply to the transfers by the operation of law such as transfer of
immovable property necessitated by order of court for insolvency or
forfeiture among others.
The Indian easement Act, 1882: This Act deals with easements and license.
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 present something
being done, in or upon, or in respect of, certain other land not his own.
The object and purpose: The object and purpose of the registration Act, 1908
is to provide a method of public registration of documents so as to give
information to people regarding legal rights and obligations arising or
affecting a particular property.
The land acquisition act, 1894: Land acquisition may be defined as the
action of the government whereby it acquires land from its owners in order
to pursue certain public or for any company.
Special relief Act, 1963: This Act is only to enforce individual civil rights. A
person dispossessed of immovable property without his consent can recover
possession by a suit filed within six months from the date of dispossession.
Unless the contrary is proved, in a suit for specific performance of a
contract, the court shall presume that a contract to transfer immovable
property is one in which monetary compensation for its non-performance
would not afford adequate relief. The court could also grant a
permanent/mandatory injunction preventing the breach of such contract and
award damages.
The land acquisition, rehabilitation and resettlement, bill, 2011: The land
acquisition Act, 1894 has been found to be inadequate in addressing certain
issues relating to involuntary acquisition of private land and property and
does not address the issues of rehabilitation and resettlement to the affected
persons & families.
Labour laws:
Building and other construction workers act, 1996 & rules of 1998
Building and other construction workers welfare cess act, 1996
Licensing:
Licensing and other contractors and construction professionals have to carry
out local construction work / specific licensing requirements for construction
professionals.
Licences and other consents depend on the location and nature of the project.
Foreign workers must obtain valid visas before arriving in India from the
relevant India visa application centre or directly from the Indian Mission.
Employment visas are granted for a period of one year or the term of the
employment contract.
Licences and other consents a project must obtain:
The licences required depend on the nature of the construction project. this
varies from sector to sector and depends on, for example:
Land issues and structure
Project location
Coastal zone
Environmental issues
Handling and movement of explosives
Import of materials
Construction of surrounding infrastructure
Dealing with hazardous waste
The owner
The contractor
The project operator (that is, the party who operates the project on a
fixed fee basis during concession period).
Environmental clearances
Licence to occupy the land for construction purposes
Licence for import of equipments
Bibliography / References: