Returning Home? Tips To Own A Good House In India
While Indians staying within the country might find property prices accelerated, the same cannot be said for NRIs who are residing abroad. For them, the increase is only marginal owing to the reduced value of Indian Rupee. As a result, overseas investors are looking to seek properties in the country and thereby giving a boost to the real estate sector.
The main reason for NRIs buying property in the homeland other than the diminished value of the Indian Rupee is a sense of security and support. Hence, if NRIs are preparing to enter the Indian real estate market there are a few things that they have to keep in mind.
The Reserve Bank of India (RBI) and Foreign Exchange Management Act (FEMA) regulations permit NRIs to invest in Indian real estate based on some guidelines.
1. NRIs can own any immovable property in India other than any agricultural land, or a land where plantation is taking place or running a farm house, unless it is legally inherited.
2. NRIs can receive any immovable property mentioned above as gifts, as long as the presenter is residing in India or is a person of Indian origin residing outside India.
3. There is no restriction in obtaining any property via inheritance.
4. NRIs can also transfer any agricultural land, farm house or plantation land as gift to any person as long as the receiver is an India resident.
5. There is also no restriction posed in transferring sale of any immovable property to any Indian residents.
6. NRIs are also allowed to transfer his commercial or residential property as a gift to any person residing in India or abroad or to anyone of Indian origin.
Moreover, there are certain points that should be kept in mind while purchasing property or dealing in real estate in India. There are multiple issues for which one must be aware of the procedures involved.
Ownership: Ensure a clear title. There should be no issues linked with the ownership / inheritance of the property and the seller/s should have the complete rights to execute the deed, especially if the said property is inherited or having joint ownerships.
No Dues Certificate/No Objection Certificate (NDC/NOC): One should ensure that the property has no outstanding bills (electricity/water etc.) or any other pending dues. To ensure this, it is ideal to obtain no dues certificate from the seller before the purchase.
NOC from Bank: If the property has been mortgaged as security for a home loan previously, it will be reflected in the Encumbrance Certificate, and it is advised to take a release letter /NOC from the concerned bank before proceeding.
Building Permits: The property should have all the building related plans and approvals and written approvals from the civic authorities in place and verified before purchase.
Ensure a Safe Purchase
Being a NRI you may not be aware completely about the trends, issues and matters regarding real estate in India and whatever image you have will be based on the ads and promotion campaigns made by builders at your place. The ones who create ad hypes may not be a reliable builder. So it is important to cross check facts with your friends and relatives residing in India, before paying advance.
Ensure that you invest in real estate through the proper channels and only after direct interaction with the builder. Expos, seminars and advertisements will help, but make sure that you do a good search online with leading and trusted real estate portals, take part in forums and read reviews about the existing customers of the builder before finalising the property to make an investment.
Joining hands with reputed developers will help buyers to have a timely possession, clean dealings and quality construction. Additionally, reputed developers will also help in maintenance of the property after sale.
