Diploma In Real Estate Economics Module II: Real Estate Law And Compliance

Real Estate Law forms the backbone of property transactions, governance, compliance, and dispute resolution. Module II of the Diploma in Real Estate Economics provides a comprehensive understanding of the legal framework governing real estate projects, documentation standards, title verification, and due diligence. This module is essential for developers, investors, brokers, and legal professionals aiming to achieve accuracy, compliance, and transparency in real estate dealings.

Applicable Law and Terminology

The real estate sector in India operates within a vast legal framework that includes central and state-level laws. Key statutes include the Transfer of Property Act, Indian Contract Act, Registration Act, MOFA (for Maharashtra), Co-operative Societies Act, and local municipal laws. This module introduces the essential legal terminology used in real estate such as freehold, leasehold, encumbrance, conveyance, indemnity, easement, occupancy rights, and development rights. Understanding these terms ensures clarity in agreements, communication, and compliance.

RERA Compliance

The Real Estate (Regulation and Development) Act, 2016 brought transformative reforms to the sector by ensuring accountability, transparency, and protection for homebuyers. This section explains critical RERA requirements such as promoter obligations, project registration, quarterly updates, escrow account guidelines, and carpet-area-based sales. Learners gain insights into penalties for non-compliance, disclosure norms, and the role of real estate agents under the Act. Proper RERA compliance enhances credibility and reduces legal and financial risks.

Documentation and Drafting

Accurate drafting and documentation are crucial in ensuring enforceable and dispute-free transactions. This module covers essential documents such as agreements for sale, conveyance deeds, development agreements, lease deeds, power of attorney, indemnity bonds, declarations, and possession letters. Learners are trained to understand clauses related to payment schedules, possession timelines, obligations of parties, termination conditions, dispute resolution, and statutory disclosures. Good documentation practices safeguard client interests and comply with statutory requirements.

Understanding Title: 7/12 Extract, 6/12, Property Card, Revenue Survey

Title verification is a fundamental aspect of real estate transactions. This module provides detailed guidance on reading and interpreting revenue records: 7/12 extract (ownership and cultivation details), 6/12 extract (crop/produce information), Property Card (urban land ownership and encumbrances), and Revenue Survey Maps (boundaries and demarcations). Understanding these documents helps identify encumbrances, disputes, reservations, and ownership rights, ensuring that the land has a clear and marketable title.

Due Diligence

Due diligence is the process of verifying legal, technical, and financial aspects of a property before entering into a transaction. This module explains due diligence steps including verifying title chains for 30 years, checking encumbrance certificates, litigation search, municipal approvals, court orders, RERA status, mortgage details, and environmental clearances. Proper due diligence prevents future disputes, protects buyers and investors, and ensures lawful project development.

Module II of the Diploma in Real Estate Economics equips learners with the essential legal knowledge required in the real estate sector. From understanding core laws and terminology to ensuring RERA compliance, mastering documentation, interpreting title documents, and conducting due diligence, this module forms a strong foundation for professional excellence and legal accuracy in real estate.