Acquisition, holding and disposal of immovable Property

1. The Transfer of Property Act, 1882: This law can be easily treated as the mother of all laws that affect the transfer of property by the act of parties. It is one of the oldest laws and came into force on 1.7.1882. This act deals with modes of transfer of property by sale, mortgage and charge, lease exchange, gift, and transfer of actionable claims.
2. The Indian Succession Act, 1925: This Act deals with intestate and testamentary succession. Although in case of intestate succession generally the personal law applicable to the deceased would apply. For example, if a Hindu dies intestate i.e. without a will, the estate of the decreased would be distributed as per the Hindu Succession Act. 1956 subject to certain exceptions. However many provisions of testamentary succession of the Indian Succession Act, 1925 are applicable to Hindus. The procedure for grant of probate and letters of administration are also provided for the Act.
3. Income tax Act 1961: This Act has more of a financial implication of transactions relating to property. For example, if the rates of taxation are reasonable, people with an intention of acquiring a property for the purpose of investment or renting out would be more inclined to do so. There are several other important implications of the statute. For example, as per section 50C, for the purpose of capital gains the value of property adopted or assessed by the stamp valuation authority is deemed to be the full value of consideration received or accruing.
4. The Bombay Stamp Act, 1958: This Act extends to the whole of Maharashtra and came into effect from 16.2.1959. This statue is a fiscal measure enacted to secure revenue for the State Government on certain instruments including on conveyance of property. The word conveyance has a wide definition and it includes every instrument by which property or nay estate or interest or interest therein is transferred to or vested in any other person unless otherwise provided for. Since 1.7.2004 the stamp duty rates have been lowered on conveyance, which is at a maximum of 5% at present for immovable property. However stamp duty for gift of immovable property to certain close relatives is 2%.
5. The Maharashtra Co-operative Societies Act, 1960: In cities like Mumbai most people stay in multi story buildings and most of such buildings which are ownership are run by cooperatives societies and the Act provides for the orderly development of the co-operative movement. The Act also defines the relationship between the society and its members and their rights and liabilities. It further lays down the producer to resolve disputes between the society and its members.
6. The Maharashtra Ownership Flats (Regulation of the promotion of Construction, Sale Management and Transfer) Act, 1963: Also commonly known as MOFA, the statute regulates the relation between the promoter (builder) and the flat purchaser. It lays down the general liabilities of the promoter and the consequences of contravention of the provisions of the Act by the promoter.
7. The Maharashtra Apartment Ownership Act, 1970: This Act provides for formation of a condominium as an alternate to a society. In case of a society the title of the land and the building is generally conveyed to the society which becomes the owner thereof and the persons who have purchased the premises in such a building on what is popularly known as ownership basis are made members of the society. In case of a condominium the title to each apartment rests with the apartment owner, who also has proportionate undivided interest in the land on which the building stands and in the common areas and facilities of the building.
8. The Maharasthra Rent Control Act, 1999: The Act deals with issues relating to rented property such as control of rent of property and the relation between the landlord and the tenant. There are certain exemptions e.g. section 3(1) (b) exempts application of the Act to any premises let or sub-let to banks, companies having a paid-up share capital of rupees one crore or more, etc. Section 24 of the Act entitles a landlord to recover possession of residential premises given on license on expiry there of by approaching the Competent Authority.
9. Mumbai Municipal Corporation Act, 1888: This Act is only applicable to Greater Mumbai and it affects property in Mumbai in many ways. Approval is required from the Corporation for erection of a building and for structural additions and alternations to the existing buildings. Property taxes are also collected by the Corporation basis for which are provided in the Act.
10. The Development Control Regulations for Greater Mumbai, 1991: This is another local law and is sanctioned by the State Government under the provisions of the Maharashtra Regional and town Planning Act, 1966 and provides regulations for the development of Mumbai. Important regulations relating to Floor Space Index (FSI). Transfer of Development Rights (TDR), land use classification and uses permitted open and parking spaces requirements and other important elements of development of a building are found herein.