For Non-Resident Indians (NRIs), buying a property in India is an ideal manner of investment. And those planning to buy properties, time could not have been better as India’s real estate sector has seen a price correction recently. With this, purchasing a property in India has become more lucrative with favourable currency rates.
Like Indian citizens, you, as an NRI, do not need to seek any special permission to buy immovable property. However, you are allowed to buy a residential or a commercial property, you cannot purchase agricultural plots and farmhouses.
If you are planning to invest in India’s real estate sometime soon, below is a quick checklist you need to keep in mind.
Required documents before buying real estate
Passport or OCI Card: Carrying an Indian passport becomes mandatory for NRIs as they need to show at every stage of any official work. Hence, showing your passport is a must while buying property. If you hold a foreign passport, you don’t need to worry. You can buy property in India with a PIO (Persons of Indian Origin) and an OCI (Overseas Citizens of India) as well.
PAN Card: As this is mandatory for availing of any financial services, PAN is one of the required documents you need to have to buy real estate in India.
Power of Attorney: You also need to provide a power of attorney. In case you are unavailable in India for executing the purchase transaction, you need a special power of attorney (and not a general power of attorney) which is registered to execute a property transaction.
How to fund your purchase?
As for funding, it’s never enough as we try every bit to get the best (which is a myth). If you are worried about funding your real estate purchase, you must know that you can fund it through inward remittances or funds in a non-resident account. You can also opt for a home loan. If you decide to take a home loan, ensure having the below documents:
• Copy of Indian passport and visa. PIO Card if you hold a foreign passport.
• OCI card if your parents are citizens of India
• Work permit or appointment letter of your country of residence
• Latest salary certificate
• Latest income tax returns
• Bank statement of your NRE and NRO accounts for the past 12 months
• Bureau report of the country of residence
• Power of attorney if you are in India to execute the purchase transaction
To have a hassle-free transaction, ensure to check and verify the following papers:
• Title deed (in the name of the seller)
• Approved plan
• Building permit
• Occupation certificate
• Updated encumbrance certificate
• NOC from the housing society
• RERA registration if applicable
If you have all these documents in order, you can purchase the property without any hassle.
