Understanding Immovable Property Laws in India

Immovable property in India is governed by a mix of Central and State-specific laws. It typically refers to real estate—such as residential homes, warehouses, factories, and land with rooted structures like plants and trees. These properties are subject to legal statutes and taxation.

In contrast, movable property refers to items like jewelry, money, computers, or watches. The concept of movable property is mentioned in laws such as the General Clauses Act, 1847, and the Transfer of Property Act. India’s diverse population means laws around inheritance and devolution vary across religions and customs, alongside codified statutes.

The Indian judiciary has played a critical role in shaping real estate law through judgments that now serve as legal precedents. Though most laws are codified, principles of common law—including equity and natural justice—are often used to interpret legislation and customs.

While the right to property is no longer a fundamental right, it is still a constitutional right under Article 300-A. This article states that no person can be deprived of their property without authority of law, reflecting the doctrine of ‘eminent domain’—the state’s power to acquire private property for public use.

State governments can also impose restrictions on who can own land—especially agricultural land—based on factors like land ceiling limits, tribal or caste classifications, leasehold rights, etc. In most states, non-agriculturalists cannot purchase agricultural land.

Under foreign exchange regulations, persons residing outside India are restricted from buying immovable property unless specifically permitted. Non-residents fall into three categories:

• A citizen of India living abroad
• A person of Indian origin living abroad
• A foreign national or foreign entity (not of Indian origin)

According to Section 54 of the Transfer of Property Act, 1882, a sale is defined as the transfer of ownership in exchange for a price paid, promised, or part-paid and part-promised. Tangible immovable property worth Rs.100 or more must be transferred through a registered document. Only properties worth under Rs.100 may be transferred by delivery of possession.

In cases where registration is compulsory, the transfer is only legally effective upon registration. Where delivery is permitted, the transfer takes effect when the transferee takes possession.

Many NRIs inherit or purchase immovable property in India but leave it under the care of tenants or caretakers. This often leads to serious issues, including illegal possession, refusal to vacate, or even land grabbing. Due to distance and lack of time, many NRIs are unable to resolve these matters efficiently and may eventually lose ownership despite protective laws being available.

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