For NRIs planning to buy property in India, time could not have been better. While India’s real estate sector has seen a price correction in the recent past, buying property in India has become more lucrative with favourable currency rates.
As an NRI you will not need any special permission to buy an immovable property. However, while you can buy residential or commercial property you cannot purchase agricultural plots, farmhouses or plantations.
Here’s a quick checklist of what you will need at every stage.What you will need before you buy real estate
- Passport and/or OCI card: You will need to show your Indian passport. If you hold a foreign passport, you can buy property in India provided you have a PIO (Persons of Indian Origin) card or an OCI (Overseas Citizen of India) card.
- PAN Card: This is mandatory for property transactions.
- Power of attorney: You need to also provide a power of attorney, in case you are not available in India for executing the purchase transaction. Please note that you will need a special power of attorney which is registered and notarized and not a general power of attorney to execute a property transaction.
How can you execute a Power Of Attorney
A power of attorney authorizes another person residing in India to complete transactions on your behalf. The POA will need to be signed by you in the presence of a consulate officer or notary in your country of residence. It will also have to be attested by them.
How can you fund your purchase?
You can fund your property purchases through inward remittances or through funds in a non-resident account. You can also take a home loan.
To get a home loan, NRIs must furnish the following documents:
- Copy of Indian passport and visa
- In case an Indian passport in unavailable
- PIO card if you hold a foreign passport
- OCI card if your parents are citizens of India
- Work permit/employment contract / appointment letter of your country of residence
- Latest salary certificate / Payslips for the last six months
- Latest income tax returns
- Bank statement of NRE and NRO accounts for the last 1 year
- Bureau report of country of residence
- Power of attorney (in case you are not in India for executing the purchase transaction)
For a smooth transaction and a hassle-free ownership experience, make sure you check and verify all essential papers.
- Title deed (in the seller’s name). Some states have specific paperwork that you need to be aware of.
- Approved plan
- Building permit
- Occupation certificate (in case it is a ready building)
- Older title deeds, if any
- Updated encumbrance certificate
- Share certificate (in case it is a cooperative housing society)
- NOC from the society
- RERA registration (if applicable)
- If these documents are in order, then you can proceed to prepare the sale agreement for purchasing the property.
Documents you need for registration
Besides your identity proof documents (like passport and PAN card), you will need to submit your current address proof documents (like utility bills) and passport size photographs for the sale deed registration.
(Source: Economic Times)
