Investments in Real Estate and Real Estate Investment Trusts in India have good future, given a strong legal backing for better functioning. India being a preferred destination to park funds, Foreign Direct Investment and other related issues are a major concern to facilitate the entry of foreign investors in the Indian Real Estate market. The exercise looks into legal frameworks and existing legal regulatory structure in India coming out with findings and suggesting reforms in the Indian legislations governing Real Estate Transactions, Mutual Funds and The Collective Investment Schemes. The present study also looks into the legal risk management highlighting issues and thereby, projecting Real Estate and REITs as a safe investment option for individual and institutional investors.