Who is an NRI?
NRIs are the non-residents of India who live abroad but are either born in India or have an ancestry connection with India. Having some connection with India, they usually visit once or twice in India to either meet their family or set up/look after their business or investment.
NRI and Real Estate
NRIs love India, and so does Indian Real Estate. The real estate industry and NRI combination are among the finest, as they happily help each other gain handsome profits quickly. According to a recent report by 360 Realtors, NRIs investment in real estate is expected to rise by 12% in 2022.
Why do NRIs Invest in Indian Real Estate?
India has one of the oldest and most prominent stock exchanges in the world. Due to the rapidly growing and diversified market, favourable returns and real estate policies encouraging FDI (Foreign Direct Investment), NRIs are impelled to invest in the Indian market, especially in real estate. This article will dive deep into leading an NRI to buy a property in India.
Basic Documents Required for an NRI to Buy Property in India
- Pan Card – This is a compulsory document for all property transactions in India.
- Passport or OCI Card – All NRIs wanting to buy property in India need to have an Indian passport. If, in case, a homebuyer holds a foreign passport, they should have a PIO (Persons of Indian Origin) or OCI (Overseas Citizen of India) card.
- Power of Attorney – A power of attorney is a registered power to execute a property transaction. An NRI has to provide a power of attorney if they are not available in India to carry out the transaction.
Funding Options Available for an NRI to Purchase a Property in India
- Inward Remittances
- Funds in Non-Resident Bank Account
- Home Loan
To take a home loan, NRI must have certain documents.
Documents Required for an NRI to Take Home Loan are:
- Copy of Indian passport and visa.
- PIO Card if you hold a foreign passport (if Indian passport is not available)
- OCI card if 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 one year
- Bureau report of the country
Essential Papers Required to Own a Property in India are:
- Title deed (in the seller’s name)
- 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 (Real Estate Regulatory Authority) registration (if applicable)
These documents are mandatory. If they are in order, then only an NRI can prepare the sale agreement to buy a property in India.
Besides mandatory documents, a few other papers are required as address proof like utility bills and passport-size photographs for the property registration.
Apart from all these formalities, It is essential to be patient and calm to avoid the hustle and bustle while buying a property.