How to sell NRI inherited property in India?

Q: I want to know what are the rules for an NRI to sell his inherited property in India ???

Ananya,

10th November 2014

Legal

nri

inherited property

nri property

title transfer

Follow Discussion

Also see discussions for

Legal

Replies (10)

Hi, Raksha is a Leading Property Management Service in Bengaluru, Chennai, and Cochin. We have a significant presence in New York, Toronto, London, and Sydney. Please visit www.rakshapm.com

Meenakshi, Bangalore

12th July 2018

Comment

@ Rohit
I am not very much acknowledge about this but what I know is that in Leave and License Agreement there is no control over the rent and the premises cannot be sublet by the tenant. In case the owner passes away the agreement gets terminated automatically. Moreover, when the rental period is over it is easier to evict the tenants. As a result, it favors the owner and ensures his/her safety.

Priyadarshini, Pune

18th September 2015

Comment

What is the different between Leave and License Agreement and Rent aggrement?

Rohit Marathi, Pune

17th September 2015

Comment

In Rental Lease Agreement the rental amount is controlled by the existing rent laws and as far as lease agreement or rental laws are concerned, the tenant can sublease the property to a third party. In case the owner of the property dies, the lease agreement would not be terminated.

Deepti Baragur, Pune

17th September 2015

Comment

@ priyanka,
There are primarily two types of agreements in India for rent:
1. Rental Lease Agreement
2. Leave and License Agreement

Deepti Baragur, Pune

16th September 2015

Comment

What are the different kinds of agreement in India?

Priyanka Vats, Pune

16th September 2015

Comment

Hi, I am working in IT company and most of the time I am working outside India, I want to rent out my apartment, so what are the necessary think I should keep in mind?

Rohit Marathi, Pune

15th September 2015

Comment

@ Rohit.
There is no doubt that renting a property helps to generate an added income and also to reduce the chances of maintenance issues which tend to develop in a vacant house. Usually NRI’s purchase a property in India just for the sake of good long-term returns. However, renting out their properties has become a trend among NRIs in the last few years as it makes economic sense.

Pravakar Saxena, Pune

15th September 2015

Hi Rohit, I would like to suggest few thinks that should keep in mind before renting out your property, if you are an NRI :-
1. Ensure a proper background check of the tenant before letting out the property. You should try and check details such as employment records, previous address of residence, etc.
2. Finalize the agreement only after ensuring that proper documentation and background check has been done from your side.

Vinay Sharma, Pune

15th September 2015

Thanks Vinay for your inputs, I really appreciate your point but can you tell more tips other than the background check. I really understand that before renting out property I should check background of tenant.

Rohit Marathi, Pune

15th September 2015

Thanks dear,
Once you finally check background and done agreement with the tenant or If tenant is NRIs person then before renting out the property to a foreigner, you should inform the local police as many cities in India demand this by law.

Vinay Sharma, Pune

15th September 2015

Various other fact that you should keep in mind are as follows:
1. Consult a professional lawyer instead of a real estate broker while drafting the agreement.
2. Power of attorney
3. Registration of agreement
4. No Objection Certificate
5. Timeframe of agreement

Saurav Mishra, Pune

15th September 2015

Hello Ananya,
The recent times have seen an interesting new trend in the whole NRI property debacle NRIs from North America and Europe coming to India to sell..
For More information anout your question Please Visit this link : http://www.nri-forums.com/showthread.php?tid=1196

Thank You,
Ruchi Varshney

Rahul, Apartment Resident

4th June 2015

Comment

Hello Ananya, if you want to sell your inherited property, being an NRI there is a procedure that one has to follow. that could be stressful. it would be better if you hire a service provider that could help you in handling all your legal and other things easily. for your reference here is a helping link for you
http://www.apsense.com/article/purchase-and-selling-property-for-nris.html

Services 2 NRI,

11th December 2014

Comment

Hi Ananya,
According to me, if the property is inherited, then the title should be changed to the sellers name by the process of mutation of revenue records. This transfer requires a will or a succession certificate. If one cannot procure a copy of the will, then the local court can issue a succession certificate. With this certificate, one can apply for a title change in the mutation of revenue records office.

Aneek Das,

10th November 2014

Comment

Hi Ananya,
It is necessary to procure all the documents required for selling the property in India. Some of the documents include:
The title deed or mother deed of the property,
No objection certificate to show the clearance of litigation and debts,
Occupation certificate issued by the municipal corporation,
Plan approval/sanction certificate,
Cooperative share certificate if the property is a part of a society building,
Lawyer certificate, if any of the original documents were lost.

Saran,

10th November 2014

Hi All,

If there are no close friends or relatives to trust with the transaction, it is wise to consult a brokerage firm to assist in the selling process. However, if the seller has realty market sense and people to support then he/she can go ahead with the selling process on their own. The brokerage firm can help you in suggesting the market situation, finding suitable buyers, price trends and risks involved.

Pranab Malakar,

10th November 2014

Hi Ananya ,

In my opinion,they can assist in fixing the selling price, applying for PAN and attorney service to obtain legal documents and tax implications. Although they provide end-to-end solutions, brokerage in India has no legal license and it could be troublesome if the brokerage fee is not fixed properly. It is advisable to find the right brokerage firm and fix the fee before initiating the selling process.

Amreesh Murugan,

10th November 2014

Hi ,
As per my knowledge, Sales registration is most important. It is essential to grant the power of attorney for the transaction to a PoA holder. There is no need to grant a complete power of attorney; instead the seller can give ‘Admit PoA’ rights to the PoA holder who will merely represent the owner in the registrar office.

Govinda,

10th November 2014

Hi Ananya,

According to this, the seller should duly sign all the documents and the PoA holder will represent him in the sale registration. However, issuing the PoA process differs from time to time and each firm will have a different process. Once the registration is complete, the seller should also concentrate on the tax implications.

Wasim Mohammad, Pune

11th November 2014

@ Ananya,
As per my knowledge , the NRIs have long term capital gains if the property was sold after 3+ years of purchase, the tax for which comes to 20.6%. Further, the basic exemption of Rs. 2 lakh is not applicable for NRIs. There are other tax exemptions available for the NRIs while selling the property.

Priyanka Vats, Pune

11th November 2014

Hi Ananya,
In my point of view, the sale money can be repatriated through official dealers but it should not be more than US $1 million per year. If the property is inherited from one NRI to another NRI, then you need to get a special permission from the Reserve Bank of India. However, the brokerage firms will guide you through this process.

Balmiki Halder, Guwahati

12th November 2014