Document checklist for NRIs buying property in India
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Key Takeaways: Planning to buy property in India? Take a look at the documents you will require at various stages from home loan processing to registration.
Many NRIs buy property in India for various reasons - as a long-term investment; as a place to stay during their visits home; as a way to remain emotionally connected to India or for their families back home. Once you embark on the process, you will realize that buying real estate in India requires you to complete a few formalities and documentation. Here’s a quick checklist of what you will need at every stage.
An important point to remember: As an NRI, you can buy residential or commercial property but you cannot buy agricultural plots, farmhouses or plantations.
What are the documents you need before you buy real estate?
Passport and/or OCI card: NRIs must show their Indian passport. If you hold a foreign passport, you can buy property in India provided you have a PIO (Persons of Indian Origin) card or an OCI (Overseas Citizen of India) card.
PAN Card: This is mandatory for property transactions.
Power of attorney: NRIs must provide a power of attorney in case they’re not in India for executing the purchase transaction. Please note that you will need a special power of attorney which is registered and notarized and not a general power of attorney to execute a property transaction.
How to execute a Power Of Attorney (POA)?
A power of attorney authorizes another person residing in India to complete the property transaction on your behalf. This POA needs to be signed by you in the presence of a consulate officer or notary in your country of residence. It will also have to be attested by them.
How to fund your property purchase?
NRIs can fund their property purchases through inward remittances or through funds in a non-resident account. They can also take a home loan.
What documents do you need to get a home loan?
To get a home loan, NRIs must furnish the following documents:
- Copy of Indian passport and visa
- In case an Indian passport in unavailable
- PIO card if you hold a foreign passport
- OCI card if your 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 1 year
- Bureau report of country of residence
- Power of attorney in the format provided by the bank (in case you are not in India for executing the purchase transaction)
Which property documents should you ask for?
For a smooth transaction and a hassle-free ownership experience, make sure you check and verify all the essential papers.
- Title deed (in the seller’s name). Some states have specific paperwork that you need to be aware of. For example, if you are planning to buy property in Bengaluru, you must check for e-Khata (in the seller’s name) for property taxes.
- Approved plan
- Building permit
- 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 registration (if applicable)
If these documents are in order, then you can proceed to prepare the sale agreement for purchasing the property.
What are the documents required for registration?
Besides your identity proof documents (like passport and PAN card), you will need to submit your current address proof documents (like utility bills) and passport size photographs for the sale deed registration.
Final Note: To ensure that your property transaction is hassle-free, you can consult a real-estate advocate in India. Keeping these documents with you will make the process simpler and faster, making your property buying experience a smooth one.
*Disclaimer: This article has been shared purely from an information perspective and we recommend you conduct extensive research before proceeding.