India is increasingly becoming a favorite investment hotspot, especially for NRIs looking to buy property in their homeland. Real estate in India has only been increasing in value and this upward trend doesn’t look like it’s going to change anytime soon. Technological advances in real estate have also made it easier for NRIs to invest in India along with the newly-introduced RERA bill which simplifies the process of property buying. However, buying a house is more complicated for an NRI than it is for Indians living in India, so be prepared to encounter miles of red tape. Here’s a list of all the documents you need to make your investment-process completely hassle-free.
Your Passport or PIO Card
If you are an NRI, it is mandatory for you to produce your Indian passport when you’re looking to invest in real estate. If you’re a Person of Indian Origin (PIO), be prepared to show your PIO card. You might even have an Overseas Citizenship of India (OCI) card which you can use to get your papers approved. If you don’t have these cards, visit the Indian Embassy immediately to apply for them. Carry your parents’ Indian birth certificates with you as proof of your status.
If you’re planning on leasing out the property you buy or selling it sometime in the future, you need to have a PAN card. All the gains you make from selling your capital will come under the capital gains tax. Your PAN card is essential for these taxes to be deducted. NRIs can fill out the Form 49A which is available online through the UTI or NSDL websites and apply for a new PAN card. Charges for a PAN card might vary depending on whether the correspondence address you provide is within India or in another country.
Power of Attorney Papers
Your Power of Attorney papers makes it possible for you to invest in real estate in India without having to be physically present for all the processes. You can grant someone in India the right to act on your behalf through the Power of Attorney act. You will need to sign the document on a stamp paper inside a consulate or in front of a lawyer in the country you’re living in. The person you’re granting Power of Attorney to will be called the ‘Attorney’ or ‘Agent’. Once this document has been attested, you will need to send it to India within three months for the adjudication process. The attorney will be registered in the registrar’s office and the process will be complete. However, the process of granting Power of Attorney to someone has become much stricter after RERA was introduced, to avoid any misuse.
There are a number of documents that are essential for every real estate investor relating to the property they are investing in. If you’re applying for a home loan, these documents become even more important. Once you apply for a loan, a panel will go through all your documents and confirm if their valid. In case you aren’t applying for a home loan, make sure you get a lawyer to check the validity of the documents. Having the right documents will protect you from investing in properties that might be facing legal hurdles. Here’s a checklist of some basic property documents you need to have:
- Title Deed
- Title Deeds from the last 15 years
- Updated Encumbrance Certificates
- Approved Plan
- Notice of Commencement (NOC) certificate
- Building permit
Documents for a Home Loan
If you’re applying for a home loan, you will need to arm yourself with a long list of documents. NRIs can buy a house through a home loan, with multiple banks across India offering loans tailor-made for NRIs. Here’s a list of all the documents you need to have if you want to apply for a housing loan.
- Passport and a copy of your Visa
- A copy of your employment contract, appointment letter or work permit, whichever is applicable.
- Latest salary certificate
- Pay slips from the last 6 months (if applicable)
- Bank statement for the last one year from both your overseas bank account as well as your Non-Resident External (NRE)/ Non-Resident Overseas (NRO) account.
- Power of Attorney papers
Buying a property in India is an excellent investment that will give you increasing returns with time. If you’re looking to invest in Indian real estate, visit Lancor for beautiful apartments and villas with unmatched luxury amenities.