Legal Matters that NRI's Should Be Aware of Before Investing in the India Real Estate
Jun 19, 2018 Legal Guidance
Foreign Exchange Management Act, 1999, states that NRIs are those who reside outside the country or are Person of Indian Origin (PIO). Real estate of the country has always been a very wise investment sector for the NRIs and in the recent years, the interest for the same has increased.
We list down everything involving the legal matter before investing in the Indian Real Estate.
We list down everything involving the legal matter before investing in the Indian Real Estate.
1.Documents Required:
The most important document that needs to be submitted, according to KYC guideline, is the copy of passport. The important information of the passport like Name, photo, DOB, address and a copy of PAN card must be submitted too. Whether it is a temporary or permanent address, a copy of the overseas address proof must be submitted too.
2. Mode of payment:
NRIs are allowed to open, hold and maintain a bank account with the banks that are authorized to deal with foreign exchange. NRIs don’t need permission from Reserve Bank of India to open the account.
NRIs are also allowed to maintain NRO accounts to deal with the transaction in rupees without the permission from RBI.
One thing that NRIs need to remember is that all the transactions for the real estate by NRIs can only be through an NRO or NRE account. Traveller’s cheque or foreign currency notes are not permitted.
NRIs are also allowed to maintain NRO accounts to deal with the transaction in rupees without the permission from RBI.
One thing that NRIs need to remember is that all the transactions for the real estate by NRIs can only be through an NRO or NRE account. Traveller’s cheque or foreign currency notes are not permitted.
3.Acquisition modes:
NRIs are free to own any immovable property in India given it isn’t any agricultural land or farm land. They can acquire the property as a gift from someone in who is the resident of India or a person of Indian origin.
4.Documents of Title:
There are many documents that an NRI must require to get the title in his name. Earlier title deeds, revenue records, no due certificate, and a title certificate from the lawyer. It is best advised that the NRI should get in touch with a lawyer for the same to get through the process smoothly and not miss out any important document or procedure for the same.
5.Financial Assistance:
Some banks and financial houses are authorized to deal with the foreign transaction; it is better to get in touch with them and get to know about their terms and condition for buying the property. Having a good idea about their terms and condition will help you make your mind and choose the best option available for the same.
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