Document Checklist for NRIs Buying Property in India

NRIs have a variety of investment options in India. But real estate still remains to be one of their favourite options, not just because of high returns but also because of nostalgic attachment and the dream to come back to a safe and world-class retired life in their homeland. In addition, many NRIs are also interested in several Indian metros considering high growth prospective of the real estate segment in the country having attractive options including apartments, villas, plots and pent houses with world-class facilities.

NRIs have multiple options available and sitting at any corner of the world one can enquire about projects through live chats, see projects through video casts, 3D walk-through etc. However, many people have doubts regarding the documents required for processing home loans as well as property documentation procedures in India. So here’s a quick check list:

Documents for home loan processing:

• Passport and Visa Copy
• Copy of employment contract / Appointment letter / Work permit (which ever or all applicable)
• Latest salary certificate (attested by the embassy, if salary is not bank credited)
• Latest 6 months pay slips (if applicable)
• Last 1 year’s bank statement (of both overseas account and Non Resident External or Non Resident Ordinary (NRE / NRO) account)
• Power of Attorney (to be executed in the format provided by the bank and attested from Indian embassy)

Checklist of property documents:

Whether you avail home loan or not, the basic list of property documents as mentioned below is a must-have for all property buyers. If you are availing home loan, the panel advocate of the bank will go through these documents and certify the validity of the property documents. But if you are not going for loan, do consult an advocate to verify the documents and to see if the property has a clear title.

The documents required are:

• Title Deed (in the name of the seller)
• Prior Title Deeds (of last 15 years)
• Latest Tax Receipts (land and building if any)
• Updated Encumbrance Certificate (covering last 15 years)
• Approved Plan
• Building permit / Notice Of Commencement (from corporation, municipality or panchayat, if you are purchasing a house / apartment)

These are the basic documents required for checking the legal entanglements pertaining to the land. After going through the documents, if there are any complications, the advocate may call for additional documents if any clarifications required.

If the documents are clear, you can get into a sale agreement with the seller after giving a mutually agreed advance payment. If you are presenting the documents to the bank directly for legal verification, they will accept the documents only if accompanied by a sale agreement.

Ensure that seller of property has all documents in original. Original documents need to get verified by the bank and the legal adviser.

Types of properties

NRIs have no restrictions in buying any type of property in India. Be it a land, under-construction house / apartment, pre-launch property or any other. However, there are some restrictions for providing land loans to NRIs. There are also restrictions for NRIs to acquire agricultural land, unless it is through inheritance or acquired before getting NRI status.

Builder projects

For purchasing flats, villas etc. from a builder check if the project is already approved by the bank. If so, you need not take all these documents pertaining to the land. Instead, you need to only submit the sale and construction agreement, receipts of down payment and an NOC (Notice of Commencement) from the builder for making the proceedings.

Formalities and documentations are uniform in India. However, slight variations can happen as is the case with developed projects. A good and cooperating seller or a reputed builder can make your documentation process hassle free.

Registration formalities

As per current registration formalities the title deed needs to have the photograph, signature and thumb impression of the purchaser. In case of the absence of the purchaser at the time of registration, a Registered Power of Attorney can be issued to your immediate relative to sign the document on your absence. This needs to be executed before the registration date.

Documents required at the time of registration:

• Pan card (Permanent account number) if any

• OCI/PIO card (Overseas Citizenship of India/ Persons of Indian Origin)

• Passport

• Passport size photographs

• Address proof

• Registered power of attorney (if you are not physically present at the register office)

 Payment:

Payment to the seller can be made through any normal channels like cheque from NRE/ FCNR or NRO account (Non Resident External or Foreign Currency Non-Repatriable or Non Resident Ordinary), cash, or cheque from bank in case if you availed home loan.