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NRI GUIDELINES TO BUY PROPERTY

  • NRI or a PIO can buy any type of property in India.
  • They are free to buy commercial and residential property.
  • There is also no restriction on the number of property holdings when it comes to commercial or residential properties.
  • The NRIs or PIOs can buy these properties through their NRE/ FCNR/ NRO accounts, which have to be used to specifically do business in India.
  • NRIs or PIOs can also take loan for buying these properties in India.
  • There is no special permission required from RBI for acquiring these properties.
  • PIOs and NRIs can also take these properties as part of inheritance.
  • Any banking transactions for buying or selling the property can be done through the NRO/ NRE/ FCNR accounts.
  • Also, whether the market is hot or not, many NRIs like to have a place back here in India.
  • The rules for any such property transaction fall under the Foreign Exchange Management Act (FEMA).
  • Monetary transaction must be in Indian rupees (INR) and through normal banking channels using an NRI account.
  • According to RBI norms, a maximum of 80% of the value of property can be funded by a financial institution, rest should come from NRI personal resources.

NRI GUIDELINES TO SELL PROPERTY

  • Under the FEMA rules, if you are an NRI, you can sell any residential or commercial property you have bought or inherited to anyone you want. If you have any inherited agricultural property, plantation or farm house, you have to search for a resident Indian to buy it. However, you are allowed to gift them to another NRI or the person of Indian origin. There are some specific RBI guidelines on the repatriation of sale proceeds which need to be adhered to.
  • You need to decide on whether you want money as repatriateble or not. “If you want to repatriate, it needs to come in foreign currency from an overseas account, NRE or FCNR account. One can repatriate up to the amount invested in the property.
  • The other condition is that repatriation cannot exceed the foreign exchange amount paid for purchase of property through banking channels. Refund of application money, bayana, advance on cancellation has no limitations.

HOW TO RENT OUT PROPERTY

Regulations on Sale of Property by NRIs:

  • Under the FEMA rules, if you are an NRI, you can sell any residential or commercial property you have bought or inherited to anyone you want. If you have any inherited agricultural property, plantation or farm house, you have to search for a resident Indian to buy it. However, you are allowed to gift them to another NRI or the person of Indian origin. There are some specific RBI guidelines on the repatriation of sale proceeds which need to be adhered to.
  • You need to decide on whether you want money as repatriateble or not. “If you want to repatriate, it needs to come in foreign currency from an overseas account, NRE or FCNR account. One can repatriate up to the amount invested in the property.
  • The other condition is that repatriation cannot exceed the foreign exchange amount paid for purchase of property through banking channels. Refund of application money, bayana, advance on cancellation has no limitations.

DOCUMENT CHECKLIST FOR NRI’S TO BUY PROPERTY 

  • 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) 

DOCUMENTS FOR 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)

 

STAMP DUTY & REGISTRATION FEES APPLICABLE FOR VARIOUS TYPES OF DOCUMENTS
S.No. DOCUMENT TYPE STAMP DUTY T.P.T REGN. FEE
1 SALE DEED(INDEPENDENT HOUSE) 5% 2% 0.50%
2 SALE DEED (FLATS) 5% 2% 0.50%
3 GIFT SETTLEMENT DEED (FAMILY) 3% NIL 1000/-
4 GIFT SETTLEMENT DEED (OTHERS) 6% NIL 0.50%
5 PURE GIFT DEED 5% 2% 0.50%
6 RELEASE DEED (COPARCENERS) 3% NIL 1000/-
7 RELEASE DEED (OTHERS) 3% NIL 0.50%
8 PARTITION DEED 3%(FAMILY) NIL 1000/-
6%(OTHERS) NIL 1000/-
10 DEVELOPMENT AGREEMENT CUM G.P.A 1% + 50/- NIL 2000/-
(M.V + CONSTRUCTION)
11 DEVELOPMENT AGREEMENT 5% NIL 1000/-
(M.V + CONSTRUCTION)
12 AGREEMENT OF SALE CUM G.P.A 6% NIL 2000/-
13 AGREEMENT OF SALE 5% NIL 1000/-
14 G.P.A(NO SALE OR DEVELOPMENT) Rs.50/- NIL 100/-
15 G.P.A(WITH SALE OR DEVELOPMENT) 1000/- (FAMILY) NIL 1000/-
1% (OTHERS) NIL 1000/-
16 G.P.A.(FOR CONSIDERATION) 5% NIL 0.50%
17 S.P.A RS.20/- NIL 100/-
18 SIMPLE MORTGAGE DEED 0.5% NIL 0.50
19 MORTGAGE DEED 5% 2% 0.50%
20 DEPOSITS OF TITLE DEEDS 0.50% NIL 0.10%
MAX 50000/- NIL MAX 1000/-
21 LEASE DEED (LESS THAN ONE YEAR ) 0.40% NIL 0.50%
22 LEASE DEED (EXCEEDING 1YEAR BUT NOT EXCEEDING 0.40% NIL 0.50%
23 LEASE DEED (EXCEEDING 5YEAR BUT NOT EXCEEDING 0.40% NIL 0.50%
24 LEASE DEED (EXCEEDING 10YEAR BUT NOT EXCEEDING 0.60% NIL 0.50%
25 LEASE DEED (EXCEEDING 20YEAR BUT NOT EXCEEDING 0.80% NIL 0.50%
26 LEASE DEED (EXCEEDING 30YEAR BUT NOT EXCEEDING M.V. APPLICABLE NIL 0.50%

General Power of Attorney Download

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