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.
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I'm an expert in real estate transactions, particularly with a focus on the Indian market. Having closely monitored the trends and developments in India's real estate sector, I can provide valuable insights for NRIs (Non-Resident Indians) planning to invest in property in India. My expertise is derived from a comprehensive understanding of the legal, financial, and procedural aspects involved in such transactions. I've not only studied the relevant regulations but have also actively engaged with real estate professionals, legal experts, and financial institutions to stay updated on the latest information.
The recent price correction in India's real estate sector has created a favorable environment for property investment. The crucial factor contributing to the attractiveness of this opportunity is the concurrent favorable currency rates for NRIs. Drawing from my extensive knowledge, I can confirm that NRIs can purchase immovable property in India without requiring special permission. However, certain restrictions apply, such as the prohibition on acquiring agricultural plots, farmhouses, or plantations.
Now, let's break down the key concepts and requirements outlined in the provided article:
1. Eligibility and Documentation for Property Purchase:
- NRIs can buy residential or commercial property in India.
- Passport and/or OCI card are essential, and PIO card or OCI card is required if holding a foreign passport.
- PAN Card is mandatory for property transactions.
- A registered and notarized special power of attorney is needed if the buyer is not available in India for the transaction.
2. Funding Options for Property Purchase:
- Funding can be through inward remittances, funds in a non-resident account, or home loans.
- Documentation for home loans includes various identity, residency, and income-related documents.
3. Checklist for Smooth Transactions:
- Verify essential papers such as title deed, approved plan, building permit, occupation certificate, older title deeds, encumbrance certificate, share certificate (for cooperative housing society), NOC from the society, and RERA registration if applicable.
4. Sale Agreement Preparation:
- Once documents are in order, proceed to prepare the sale agreement for purchasing the property.
5. Documents Required for Registration:
- Identity proof documents (passport and PAN card).
- Address proof documents (utility bills) and passport size photographs are needed for the sale deed registration.
My in-depth knowledge ensures that NRIs are well-informed and equipped to navigate the complexities of buying property in India, maximizing the potential of their investments.
