If you are an NRI and are thinking of buying a home or commercial property in India, you can consider investing in the Indian real estate as a good idea. The recent tax reforms have paved the way for the real estate market, allowing for lucrative options for real estate buyers of every kind. You might think that the entire process of investing in real estate has a complex nature and might be facing a lot of doubts. This is where this basic property guide will come in handy and will help you, especially if you are a first time real estate investor:
Can An NRI Buy Commercial And Residential Properties In India?
Yes, an NRI can buy property in India. If you consider FEMA (Foreign Exchange Management Act) regulations, NRIs can buy immovable assets in our country without having to take permissions from the RBI. Here are some guidelines that you need to adhere to:
If you are an NRI, you do not need to bring it to the notice of RBI that you wish to buy a property in India. Plus, you also do not need to involve RBI at the last stage of the transaction. Also, there is no limit set for the total number of properties that an NRI can buy in our country.
There is one specific point to note about NRIs investing in the Indian real estate market. They can buy only two types of properties, i.e. commercial and residential property.
Is An NRI Going To Benefit From The Indian Real Estate?
Before you think of making a commitment to buy a property in India, you would want to know if you are making the right investment or not. But, you don’t have to worry, because given the present scenario you can definitely invest in real estate in India. There are many amazing options for real estate available these days that too at affordable rates. Laced with a lot of great facilities and amenities, you can easily choose comfortable and luxurious living spaces.
What Is The List Of Documents You Would Need To Buy a Property?
If you have already made up your mind to buy one of the commercial or residential properties available for sale in India, then you must keep the following list of documents ready. To make the whole process of property buying smooth and easy, you must have all the legal documents in place. Doing so will prevent any future disputes from cropping up. Here is the list:
1. Overseas Citizen Of India (OCI) Card or Indian Passport
The most important document that you would need for buying a home or commercial property in India is an Indian passport. Also, if you have a foreign country passport, then you should have a PIO card (Person of Indian Origin card). If you are not an Indian Citizen, but one of your parents is an Indian, you will need to produce an Overseas Citizen of India (OCI) card. If you don’t have it, you can approach the Indian Embassy of the country you stay in for the same.
2. Power of Attorney Certificate
You would need to grant the power of attorney to someone who can make decisions regarding the investment on your behalf. Plus, if you have a trustworthy power of attorney, he/she can aid you in a variety of things. He/she can help in property registration and execution of possession and sale. You must act wisely in selecting your power of attorney, because he or she should be a person that always acts in your favour and best interests.
You can prepare a power of attorney certificate with the assistance of your lawyer and both your witnesses and power of attorney should sign on it. Lastly, keep the document safe and secure, so that you don’t face troubles in the property buying process.
3. PAN Card
If you are going to invest in India, you would be required to file income tax returns. For this to take place, you need to have a Permanent Account Number (PAN) card. So, you cannot do any property buying without a pan card. If you do not have one, you can easily get one made by applying online.
Should The NRI Be Physically Present In The Country To Buy The Property?
For an NRI investing in the Indian real estate market, it may be impossible for him or her to go back and forth between the two countries for buying a home or commercial property. To make the entire process of property buying smoother for NRIs, a provision of the same has been put in place. This is where the role of the power of attorney comes into play. Read on to know more:
Power of Attorney
If you grant someone Power of Attorney, that person will be allowed to sign documents on your behalf and will also be able to make decisions. Because you as an NRI won’t be residing in India, you will be provided with the advantage of not having to be physically present. That is why you can appoint someone whom you can put your faith in. You must research more about power of attorney to get the complete hang of it.
This was a detailed guide about NRI property buying in India. Hope all your doubts got resolved! So, get cracking and start your property search now!