Beyond Borders: A Step-by-Step Guide for NRIs Registering Properties from Abroad

By LODHA

As India's real estate sector ascends to unprecedented heights, drawing investment and attention from a global audience, including Non-Resident Indians, the allure of acquiring premium flats in Bangalore, buy flats in Mumbai or Pune remains robust. Not only do these homes offer them a connection to their cultural roots, but also act as lucrative investments that will appreciate with time. However, the journey of property ownership in India while residing abroad can be a complex and intricate process. For NRIs, the prospect of registering properties in India poses unique challenges and considerations.

In this blog, we unravel the intricacies of property registration for NRIs, offering invaluable insights and step-by-step guidance. Whether you're a first-time property buyer or seeking to invest in the ever-evolving Indian real estate market, here’s how you and other NRIs can make sound and successful property transactions from abroad.

A Guide for NRIs Navigating Property Registrations in India

It could be challenging for NRIs wanting to invest in the Indian real estate market to register properties from abroad. However, one can effectively navigate the procedure with the necessary preparation and support:

Choose the Immovable Asset

Non-resident Indians (NRIs) can purchase both commercial and residential real estate in India. However, it is important to highlight one specific exception: the acquisition of plantations, agricultural land, and other comparable holdings. In the instance where an NRI expresses interest in purchasing agricultural land, they must start the procedure by requesting additional rights. It's crucial to note that each application will undergo a meticulous individual review by the authorities.

Select the Suitable Financing Route

Determine if you prefer purchasing the property through self-financing or a home loan. Numerous Indian banks extend home loans to NRIs, facilitating property acquisition without undue financial burden.

Build Reliable Local Support

Seek support from a local authority, for instance by engaging the services of a skilled lawyer for legal intricacies and a knowledgeable real estate agent for property searches. This ensures a smooth and legally compliant property transaction process.

Validate Property Ownership

Before concluding any transaction, confirm the property possesses a clean title and is devoid of legal conflicts. Engage in thorough due diligence and enlist the assistance of a legal professional to scrutinise all documentation.

Obtain a No Objection Certificate (NOC)

If the property under consideration was previously held by an NRI, securing an NOC from the Income Tax Department is imperative. This certificate attests to the seller's fulfilment of all tax responsibilities.

Obtain a Power of Attorney

Suppose an NRI is not physically present in India. In that case, they may designate a trustworthy representative to act on their behalf in managing the property registration procedure by giving them a Power of Attorney (POA). The POA should be registered with the Indian Consulate or Embassy of the country in which the NRI resides.

Verify Necessary Documents

To ensure a smooth transaction and avoid any legal issues, NRIs must carefully review and confirm all required documentation. In India, the registration of a property typically requires the following paperwork (but is not limited to):

• Title deed (named after the seller)
• Approved plan
• Occupation Certificate (if the building is ready)
• Building Permit
• Updated certificate of encumbrance
• Share certificate (if the housing society is cooperative)
• Registration under RERA (if applicable)
• NOC from the society
• Identity documents (passport, PAN/Form 60)

Prepare Sale Deed

This legal document is what gives the buyer ownership of the property when it transfers ownership from the seller to the buyer. With their POA or a trustworthy representative in India, NRIs can prepare the sale deed. The sale deed needs to be registered with the local sub-registrar's office and executed on non-judicial stamp paper that has adequate value.

Pay Stamp Duty and Registration Fees

NRIs are required by state government rules to pay stamp duty and registration fees. The registration fee is the cost of registering the sale deed with the sub-registrar's office, and the stamp duty is a tax imposed on the sale deed.

Obtain Completion Certificate

A completion certificate is a legal document attesting to the fact that the building is finished and that it complies with all applicable municipal and approved regulations. NRIs are required to get a completion certificate from the relevant government or the local municipal corporation.

This process might differ slightly based on the individual criteria of distinct states in India. It is also advised that NRIs get expert legal advice and assistance to ensure a seamless and legally compliant property registration process.

Taxes and Benefits for NRIs:

• NRIs pay applicable taxes such as stamp duty, registration fees, and yearly property taxes.
• Tax benefits under Section 80C allow a deduction of INR 1 lakh.
• Short-term capital gains are applicable if the property is sold within three years.
• Reinvesting after three years lowers the long-term capital gains tax on other properties.

Even from afar, owning property in India for instance buying flats for sale in Pune or luxury flats in Mumbai can be rewarding. Remember, with careful planning, in-depth research, and the right tools, you can transform your dream into a secure and profitable reality. So, step confidently into the world of Indian property ownership from the comfort of your international abode.

At Lodha, the top real estate developer in India, we prioritise the needs of our Non-Resident Indian (NRI) clientele with a dedicated team committed to delivering exceptional service and support. Our comprehensive range of services is tailored specifically for NRIs, ensuring a seamless experience throughout their property journey. From dedicated customer care to expert assistance with home loans, renting, and beyond, we aim to make property ownership in India a hassle-free and rewarding experience for our valued NRI customers.