Documents Required for NRI to Buy Property in India 2020, Documents Required to Sell Property in India
Documents Required for NRI to Buy Property in India? NRI or Non Resident Indian are the people of Indian origin who migrate outside country for better job opportunities and for raising their living standards. They are emotionally connected with their place of origin or their place of birth.Moreover, They want themselves to be connected to their place of birth by having some resources through which they can be connected.Thus, They do buy some properties and assets in India either for financial growth or just for the sake of emotional satisfaction. Some of them have planning for their retired life. Moreover, After retirement they want themselves to live in a peaceful place with no mental stress.
However, Real estate remains one of the favorite investments for NRI’s not just for high returns but to stay connected with their country.
NRI’s can conquer or can investigate about any investment through live chats, see projects through video casts, 3D walk-through etc. They can also make deals by transferring the amount through banks. They can also make deals with the help o their relatives, friends who are living in India.
Moreover, many of them have doubts about the documents required for processing home loans as well as property documentation stages in India. So here’s is a beneficial list for you to check:
Documents required at the time of registration:
1. PAN Card: PAN( Permanent Account Number) Card:
However, This very essential for NRI’s who have their properties rented in India or have sold it. They will be asked to file a income tax returns. If the property is sold the capital gains arising from the sales would be subject to capital gains tax.
2. Indian Passport of Person Of India Origin (PIO) Card or Overseas Citizen Of India (OCI) Card:
However, You will need to have a passport subjected to Indian origin to purchase any property or a PIO Card and OCI if you’re not a citizen of India but you were a citizen of India before Independence or your parents were.
3. Passport size photographs:
However, You will need to have passport size photographs while registration.
4. Address proof:
You will require a address proof for registration foe example any ID proof or electricity bill, etc.
5. Registered power of attorney:
However, This will only be required if you are physically present at the office of registration.
Documents for home loan processing:
1. Copies of passport and visas.
2. Pay slips of latest six months.( If applicable).
3. Latest salary certificate (attested by the embassy, if salary is not bank credited).
4 Power of Attorney (to be executed in the format provided by the bank and attested from Indian embassy)
5. Bank statement of last one year( of both NRE and NRO account).
6. Copy of employment contract / Appointment letter / Work permit (which ever or all applicable).
The documents required are:
Moreover, Some of the basic documents required for checking the legal attachments in relation with the land are listed below .Thus, After going through the documents, if there are any complications, the advocate may call for additional documents if any changes are required.
If these documents are correct, you can pursue a sale agreement with the seller after giving a discussed advance payment. These are as follows:
1. Latest Tax Receipts.( Land or building any)
2. Updated Encumbrance Certificate (covering last 15 years)
3. Prior Title Deeds (of last 15 years)
4. Approved Plan
5. Building permit / Notice Of Commencement (from corporation, municipality or panchayat, if you are purchasing a house / apartment).
Types of properties:
Moreover, There is no restrictions for NRI’s for buying any property whether it be land, construction site, flats or apartments, farm house, etc.Thus, They can avail any property of their wish and can make a deal. Moreover, there are some problems which the NRI’s have to face, these problems are related to agricultural land as the NRI’s cannot avail this land if they were not having their ancestral property or before they got the status of NRI.
You Can Also Read :
- How to Sell by Owner 2019 | Steps of How to Sell by Owner
- How to sell Real Estate without a License 2019 | Methods and Results of transacting Real Estate business without a License
- How to List and Sell Real Estate 2019 | Steps to List and Sell Real Estate
- How to Sale Real Estate Notes 2019 | Steps to Sale Promissory Note
Checklist of property documents:
However, Analyzing the details of your documents is very important if you are a NRI. If you are selecting a home loan, the panel or main advocate of the bank will go through these documents and certify the validity of the property documents. But if you are not going for loan, consult an advocate to verify the documents and to see if the property has a correct title. Otherwise your documents will not work and you’ll be not able to buy/sell any property in India.
As per the current registration formalities,the mandatory formalities are passport size photographs, thumb impression, and signature. In case of the absence of the candidate the registered power of attorney can supplement your details.Moreover, This needs to be done before the registration date.
However, If you need to purchase property in India by a broker then you have to make sure that the property is approved by the bank. All the Formalities and documents are uniform and same in India. But some variations can take place. Thus, If so, there is no need to take all these documents related to the land. Instead, you need to only submit the sale and construction agreement and details, slips and details of down payment and an NOC (Notice of Commencement) from the broker for enabling the process.
Payment can be made by different options to the seller like cheque from NRE/ RFC or NRO account (Non Resident External or Foreign Currency Non-Repatriable or Non Resident Ordinary) , cash, or cheque from bank in case if you took home loan.
Five Things NRIs Buying Property In India Must Know:
An NRI does not require any special permission. However, the payment cannot be made with foreign currency.Thus, NRIs can make the purchase through Indian currency- the Rupee, through funds and alternatives received by the country by all means of normal banking channels and institutions.Thus, These funds should be maintained in a non-resident account under the foreign Exchange management Act (FEMA) and the Reserve Bank of India (RBI) regulations and terms.
The RBI has given a general an specific permission to banks and housing finance or general insurance companies registered with the National Housing Bank to provide loans to NRIs for buying residential or any property in India. Thus, NRI’s can get loans easily if they have all the necessary documents with them.
2.Power of attorney (PoA):
As the NRI’s live outside, NRIs have an option and merit to give their PoA to their friends or relatives to complete the property purchase process in India and to fill all the formalities. However, The PoA can be general and specific about the rights citizens can enjoy.
3.Nature of property:
NRI’s can buy any sort of properties in India whether it is agricultural, land, apartments/flats, etc.
4.Repatriation of funds back to the foreign country:
There are certain rules and regulations for repatriation of funds in India: FEMA directives should be consulted while purchasing a property, The amount repatriated cannot exceed the original amount paid for the property.
However, When an NRI sells or makes a property deal in India, TDS (tax deducted at source) calculation is done at the rate of 20.6 per cent on long-term capital gains and 30.9 per cent on short-term capital gains.If an NRI has a lower tax regime to him, then he can apply for a refund to the TDS by filing their income tax return.