India’s real estate industry has undergone metamorphic transition from largely being an unorganized sector to an organized sector. This happens to be a highly welcoming trend vis-a-vis the development of the realty sector as the erstwhile lack in transparency and regulatory intervention brought with it a distrust and risk from an investor perspective. Further, vehicles like REITS/INVITS, as introduced recently, are transforming the commercial real estate market radically, with large projects being listed on the stock exchanges, thereby providing better access to funds with increased investor confidence. Moreover, the Indian Real Estate sector
is also embracing technology and digital transformation, thereby bringing in increased transparency in the realty transactions.
However, factors like complicated prior real estate transactions, non-available and illegible erstwhile title and revenue documents, incomplete computerization of land records, cases of fabricated records, etc. have made the process of establishment of clear and marketable title to the real estate, as multi process driven and highly complicated. Establishing clear and marketable title is hence highly crucial and it will not be misplaced to say that the same is in-fact a condition precedent for all real estate transactions.
Further, immovable property being a state subject, each state has its own set of land laws guiding possession, enjoyment, ownership and transfer of the real estate, thus compounding the complexities involved in understanding the legal matrix of real estate transactions. Multiple local authorities are responsible for various approvals and often, all underlying documentation is in the local language. Given these dynamics, it is very important to conduct a thorough due diligence through a professional having expertise and knowledge on the local laws and having experience in handling practical situations.