Property rights and the property market
When a transfer of property is being done between two people, or between two firms, the person or institution selling the property is actually relinquishing the right of the particular property owned by them to the seller. Real property markets actually deal with ‘property rights’. When a customer purchases a car, he is given the exclusive right to use it as long as he wishes. He has the exclusive right to sell it to somebody else as well.
However when a customer is hiring a car, his right to use the vehicle is restricted to a specified period and subject to conditions regarding its proper use, wear and tear, any damage caused etc. The same is the case for property rentals. When prime Property in India is being rented out, the tenant will have to meet the cost of any damage to the property let out to him.
When a sale is being affected, the complete right over the property gets established only upon payment of the full amount for the particular plot. However when a particular building is being taken on rent, or when property is being leased out, the restricted rights are more likely to be clearly defined in the written agreement which excludes others from using the building for a specified period.
In the case of real estate property, it is not possible to hand over land and buildings in the same way as is being done in the case of movable goods. In a property transaction the rules and regulations governing a transaction are very important. In every property transaction, the written statement clearly defines the exact rights that are being transferred. The India property market deals more with the rights relating to real property than with the land and the buildings in it.