Documents you must have when buying a Property

Buying a property is a very important investment for anyone and the experience is totally different when it is about the first property. In order to make that experience a good experience there are a few points that you must keep in mind. If you do not want to fall into the legal Hassels then remember that documentation plays a really important part during the property transactions.

Many buyers find this documentation tricky, but to be honest if you have a fair idea about the documents needed then this process is really Hassle free.

Let us see what all documents you as a buyer must have before buying a property in Original booking.

Indian Citizen:

According to the law, any person born in India, on or after 26 January 1950 to the commencement of the 1986 Act on 1 July 1987, is a citizen of India by birth. After 1 July 1987, a person is a citizen of India if either parent was a citizen of India at the time of the birth. After 3 December 2004, the person is citizen of India only if both of their parents are citizens of India or if one parent is a citizen of India and the other is not an illegal migrant at the time of their birth.

For Indian Citizens the mandatory documents are:

• PAN Card
• Photo ID Proof
• Address Proof
• Photographs – 2 to 6

NRI

An NRI is a citizen of India who holds an Indian passport and has been immigrated to another country over six months for work or residence etc.

For Indian Citizens the mandatory documents are:

• PAN Card
• Photo ID Proof
• Address Proof
• Photographs – 2 to 6
• Valid Visa
• If green card holder, then the person needs to produce NRO/NRE Bank account details

In India, there are just 3 banks that provide this facility: American Express, HSBC and Citibank.

Coming to Resale property, following is the list of the documents required:

When it comes to buying a Property in Resale, then the things get a bit trickier. Lots of other documents get involved and legal procedures increase. We share with you a list of mandatory documents with you, along with the identification certificates.

• Share certificate issued by the society
• Lease deed of society
• Registration details of the society
• Bye-laws of the society
• No objection certificate from the society
• Approved building plan
• Title of builder
• Undertaking from society
• Allocation letter, Allotment letter and Possession letter
• Receipts of payments made to authority
• Permission to mortgage
• Authorization letter signed from seller
• Receipts of payments made by purchaser to seller
• Verification of signature of seller from his bank

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FAQs for NRI

1.      Who is an NRI?

An NRI is a citizen of India who holds an Indian passport and has been immigrated to another country over six months for work or residence etc.

2.      Who is a PIO?

A person of Indian Origin (PIO) means an individual who:

• held an Indian passport at time or,
• who/whose father/paternal grandfather was a citizen of India by virtue of the constitution of India or Citizenship Act, 1955

3.      Who determines whether a person is resident of India or not?

Under FEMA, the status is determined by the operation of law.

4.      What types of NRI accounts are allowed to be maintained in India?

 Two types of accounts are allowed to be maintained in India:

·         Non-Resident (external) Rupee Account (NRE)

·         Non-Resident Rupee Account (NRO).

Funds in NRE account are repatriable.

5.      Can an NRI authorize a close relative to operate his NRE account?

Yes he/she can after providing a letter of authorization.

6.      What are the various facilities available to NRIs/OCBs?

NRIs/OCBs can avail following facilities:

•        Maintaining of bank accounts in India
•               Investments in securities/shares and deposits with Indian firms/companies
•        Investments in immovable properties in India

7.      Can an NRI or PIO avail housing loan in rupees from his employer in India?

Yes, subject to certain terms and conditions.

8.      Can an NRI/PIO/Foreign National sell his residential/commercial property?

TYPE OF CITIZEN	STATUS	CAN SELL TO WHOM	CONDITIONS
NRI	Yes	to NRI/PIO/Foreign National	Nil
PIO	Yes	to a resident of India/NRI/PIO	prior approval of RBI
Foreign National	Yes	to NRI/resident of India/PIO	prior approval of RBI

9.      Can a NRI gift his property?

TYPE OF CITIZEN	STATUS	CONDITIONS
NRI	Yes	Nil
PIO	Yes	Nil
Foreign National	Yes	prior approval of RBI

10.  Can an NRI/PIO/Foreign National mortgage his/her residential/commercial property in India?

Yes, the property can be mortgage keeping following conditions in mind:

·         Can be mortgage to:

(1)   an authorized dealer/the housing finance institution in India without the approval of RBI.

(2)   a bank abroad, with prior approval of RBI

·         A Foreign National of non-Indian origin can mortgage a residential/commercial property only with prior approval of RBI.

·         A Foreign company which has established a branch office or other place of business in accordance with FERA/FEMA regulations has generated permission to mortgage the property with an authorized dealer in India.

11.  Can NRI/PIO rent out the residential/commercial property purchased out of Foreign exchange/ rupee funds, if not required for immediate use?

Yes, rent received being current income may be credited to NRE/NRO account or remitted abroad.

12.  How can an NRI/PIO make payment for purchase of resident/commercial property in India?

Payment can be made by NRI/PIO out of:

(1)   Funds remitted to India through normal banking channels or

(2)   Funds held in NRE/FCNR(B)/NRO accounts maintained in India

No payment can be made either by traveler’s cheque or by Foreign currency notes or by other modes except from those mentioned above.

Property in Gurgaon

NRI: All about Real Estate in India

Why, How and Where are three common questions that keep arising when we talk about investing Indian Real Estate. This is what we are going to help you with in this article. Starting from ‘why’, then ‘where’, to finally ‘how’, we would try to answer all your queries.

India has proved that it possess a lot of potential. Urbanization and Globalization are the major factors behind the boom in Real Estate Industry. This growth has focused on mainly three sectors, Residential, Commercial and Retail.

Growth in commercial Real Estate sector is due to the rapid growth in Outsourcing Sector and IT/ITeS. Growth in Tourism Industry is also behind this huge improvement in Real Estate Scenario. This has not only affected the employment opportunities, lifestyle and class but also has increased the cash flow directly improving the country’s economy.

All of this has directly attracted the interest of NRIs to invest in Indian Real Estate. Though the reasons are different; some want to settle in, some just look for a traveling spot and some for investment purposes. Though the Tier I cities are showing a kind of saturation but the good news is that Tier II cities are attracting a lot of builders and developers to launch their projects. It has been estimated that Indian Real Estate is growing at a rate of 30% per annum.  Real Estate sector is one of the safest sectors to invest your money in.
                                                                             
When we talk about places offering good investing options, the top names in present scenario are Noida, Greater Noida and Gurgaon. These three are the most promising cities at present. If we talk about only commercial investments that include office markets then apart from the above three, Mumbai and Bangalore are also among the promising cities to invest in. The builders like Vatika, Vipul, DLF, Bestech, Unitech, BPTP, M2K, Ireo and Homestead are few of those who have captured the Real Estate market by launching their premium projects in different areas of Noida, Greater Noida and Gurgaon.

After having an in-depth knowledge about the market, the most important thing to consider is that how can you invest in the market? Basically if you are a NRI, you tend to have an lesser knowledge about the Real Estate market. Major things that one must keep in mind during investment, mainly when it involves NRIs are:

1.THE REQUIRMENT: Knowing the requirements is the foremost necessity. One should invest according to the purpose of investing.

2.EXPERT ADVICE: It is really important to take an expert advice when investing in a particular project. The important thing is to choose a reliable source, who can help you in investing in the appropriate project.
India has a lot of scope for Real Estate investments.

We will keep you updated for the same in our coming Blogs!! Keep visiting us!

Property in Gurgaon