Document Checklist for NRIs Buying Property in India

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Key Takeaways

The article details the rules and regulations for NRIs to keep in mind while investing in real estate in India.

Even as an NRI, you may want a house in India for several reasons. Perhaps because you may want to settle in India after retirement, or as an investment, or even because your parents back in India might need a comfortable place to stay. You can purchase residential or commercial property in India as long as it is not an agricultural plot, plantation, or farmland.

Documents checklist for NRI while buying a property in India

The documents required for NRI investment in Indian real estate may vary from one bank to another. Here are documents required to buy real estate in India:

PIO/OCI Card: If you are a PIO or OCI cardholder, you will need an Indian passport to invest in Indian property. In case you have a foreign passport, but your father or grandfather was a citizen of India, you may need an OCI card if you want to buy property in India. ^{[1] [2]}

PAN Card: You will need a PAN card to apply for a home loan, file income tax returns or want to rent out your new property in India. Besides, if you plan to sell the property later, the capital gains resulting from the sales would be subject to tax.

Registered Power of Attorney: If you do not visit India frequently, you can execute a power of attorney authorising someone you trust in the city where you are buying a property to complete the transaction on your behalf. This way, it becomes much easier to co-ordinate and close the sale, registration, possession, and other processes.

Proof of Address: If you are an NRI, you need to submit the address proof of your current residence attested by the Indian Embassy abroad.

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Documents required for NRI investment in real estate in India are:

For a New Home

Copy of the Allotment Letter
Buyer Agreement/Copy of registered agreement/Draft agreement.
Payment receipt(s) made to the developer/builder

For a Resale Home

Title Deeds including all previous chain of the property documents/agreements
Initial payment receipt(s) made to the seller
Copy of the agreement to sell (if already executed)

For a Balance Transfer/Take Over

List of Documents: This LOD statement will be from your bank stating which documents of your property they have
Photocopy of the property documents (including Own Contribution Proof)
Current outstanding balance letter from your current bank

Additional documents your bank may require:

Your bank may also ask for these documents on a case-to-case basis:

Sanctioned Building Plan
Commencement Certificate
Occupancy Certificate
Tax Paid Receipts
Encumbrance Certificate
Khata/Mutation Documents
Share Certificate (In case it is a Co-operative Housing Society)
NOC from the society
RERA registration (if applicable)

When buying property, a Title Deed needs to have your photograph and signature per current property registration rules. In your absence, you can authorise a Registered Power of Attorney (PoA) to sign the document on your behalf at the time of registration. This PoA needs to be completed before the registration date.

Financing Your Property Purchase

After deciding which property you want to buy in India, you have to arrange for funds. You can either finance it on your own or consider taking a mortgage. If you apply for a home loan in India, you will need to keep your income proofs ready and other documents. Here is a list of documents your bank may require from you:

Identity

PAN Card (applicant & co-applicant)
2 photographs attached to the application form

Residency and Work Permits

Work Permit/CDC
All pages of Passport for applicants & co-applicants along with a valid work VISA/residence permit

Income & Employment

Last 3 months salary slip
Bank statements of the previous 6 months of your overseas account (in which your salary gets credited)
Bank statements of the last 6 months NRE/NRO bank statement of India
Income tax returns of the last 2 years (in case you have been employed in the same company for more than two years, then one year’s income tax return is sufficient)
HR confirmation letter mentioning your designation, gross salary, present address, contact number and date of joining

Credibility

Latest overseas credit bureau report

Property and Existing Loan

All documents related to the property
Chain of all existing agreements
Copy of Share Certificate (front & back)
Occupancy certificate or approved plan & CC
In case of a balance transfer, the sanction letter and loan account statement of the existing loan also needs to be provided
In case of a property purchase, the draft agreement also needs to be provided

Final Note

NRI investment in real estate is not a widely discussed topic. The motivation for an NRI to purchase property in India can vary. The fact remains that NRIs have the option to buy property in India. Like any other significant investments, you as an NRI are required to submit documents to make a property purchase in India. You can pay for the purchase in Indian rupees through an NRE or an NRO account. You need not take prior permission from the Reserve Bank of India to purchase a property in India. Due to the reasonably easy regulations, property purchases in India are made hassle-free.

With an NRI home loan, you can get funding for your desired property in India.

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*Disclaimer: This article is published purely from an information perspective and it should not be deduced that the offering is available from DBS Bank India Limited or in partnership with any of its channel partners.

The purpose of this blog is not to provide advice but to provide information. Sound professional advice should be taken before making any investment decisions. The bank will not be responsible for any tax loss/other loss suffered by a person acting on the above.