Investing in Indian real estate has been a favorite investment avenue for Non-Resident Indians (NRIs) who want to keep in touch with their motherland while reaping the benefits of high-value investment opportunities. The Indian real estate market, including residential, commercial, retail, and hospitality sectors, has always been an attractive destination for NRI investments.
Traditionally, NRIs have accounted for around 8% to 10% of annual property sales in India. This is a notable trend. Investments by NRIs in Indian real estate had reached over $10 billion in the first eight months of fiscal 2018-19. NRIs have been investing steadily in Indian real estate. The share of real estate investments by NRIs in India stood at 10% in 2019 and rose to 15% in 2023. According to projections, this number is expected to reach 20% by 2025.
The process of NRI property purchase in India requires proper knowledge of the necessary documentation for a smooth and legally compliant transaction. This article provides an overview of the major documents required by NRIs to successfully navigate the Indian real estate market.
Essential Documents NRIs Would Require In A Real Estate Transaction In India
Given below is an all-inclusive list of essential documents NRIs would require in a real estate transaction in India:-
1. Valid Passport and/or OCI/PIO Card
A valid passport will be considered to be the prime identification and a proof of citizenship. NRIs should produce their Indian passport. Holding a foreign passport, you may purchase property in India, though if you own a Person of Indian Origin (PIO) card or an Overseas Citizen of India (OCI) card.
2. Permanent Account Number (PAN) Card
A PAN card is required for a property transaction in India. The same is required to pay stamp duty and registration charges. NRIs must obtain a PAN card so that these transactions can be executed smoothly.
3. Power of Attorney (PoA)
If an NRI is considering investing in 3 BHK luxury flats in Sarjapur Road, Bangalore, but is unable to physically present themselves in India to execute the property transaction, it is prudent to appoint a trustworthy individual as a Power of Attorney. The PoA document should be notarized, and if executed abroad, may have to be attested by the Indian consulate in the country of residence.
4. Proof of Address
Proof of current address shall be required for correspondence and verification. Utility bills, bank statements, or any government-issued address proof of the country of residence are considered valid documents.
5. Income Proof
Banks may also ask for proof of income in case you apply for a home loan. Salary slips, employment contracts, or even income tax returns from your country of residence will be considered for this purpose.
6. Property Specific Documents
Before finalizing the purchase, ensure the seller provides the following documents:
Title Deed: Confirms the seller’s ownership and the property’s legal status.
Approved Building Plan: Ensures the property complies with local regulations.
Occupancy Certificate: Issued by local authorities, indicating the property is ready for occupancy.
Encumbrance Certificate: Shows the property is free from legal dues or mortgages.
No Objection Certificate (NOC): Obtained from relevant authorities or the housing society, if applicable.
These documents are essential to ensure the legal standing of the property and to avoid future disputes.
7. Tax Receipts and Utility Bills
Ensure that the seller provides the latest property tax receipts and utility bills. This confirms there are no outstanding dues associated with the property.
Conclusion
Well, being well-prepared with all the necessary documentation will allow for a smooth property transaction and protect your investments. It is always advisable to consult a lawyer as well as financial advisors to effectively navigate the complexities of real estate transactions in India.
Have questions about the documents needed for your property purchase in India? Our experts are here to help! Contact us today for personalized guidance on navigating real estate transactions as an NRI. Let’s make your investment process hassle-free!
