28 September 2016

Indian real estate market is up surging very fast! Property prices are rising significantly! It’s just a fact that most of the millionaires of world inherit their property from their family. Many Non-residents have appreciated Real estate being the potential property to generate high returns in both capital form and rental yields.

With the Indian real estate growth, the Non-resident Indians-NRIs are showing good interest in property investment in the Indian real estate market. For these overseas Indians, the depreciation of Indian rupee against the US dollar has made property investment affordable and profitable.

Reserve Bank of India Produces Guidelines for Protecting Consumer Interest

Reserve Bank of India has issued guidelines for these NRIs for investing in the residential real estate sector. As per the Ministry of Overseas Indian Affairs, India holds the second position in the world after China, where the countrymen get settled overseas.

Indians are spread all around the world in the major regions. If you are an NRI seeking to invest in the Indian real estate sector then, there are few basic tips or rules which you must be aware of. These would help you brilliantly to navigate your investment in Indian market precisely.

Helpful Tips for NRIs

1 You need to determine the property nature as Reserve Bank of India has specified in the guidelines that NRIs are prohibited from purchasing agricultural land or farm lands in the country.

2 Before making any financial transactions, it is advised to examine the legal documents associated with the property purchase. There are several recorded cases that the real estate developers construct residential complexes illegally on the agricultural lands which are irrespective as per the laws.

3 NRI investor must check the original title deed which must specify the name of the real owner. There may be possibilities of a loan against the property if a photocopy of the title deed is produced and not the original. Before falling in the ditch in a later stage, it is good to verify the status.

4 It is advised to check the property clearance as determined by the law. Environmental, Municipal clearance, the authority of transferring the share of land to the apartment owners on project completion.

5 Taking consultation of Indian lawyer for passing the claims is imperative. This would ensure the process to be executed in a secured way. The Indian lawyer would cover and take care of the legal aspects.

6 Once you identify the property you are interested in purchasing, you need to make an agreement of the sale which must be drawn on a stamp paper. On this stamped paper, the final amount and the advance payment structure would be specified. This would also include the time limit of paying the pending amount as well as the instalments details.

7 Once the sale deed is drafted, it needs to be registered at the Sub-Registrar. The sale deed must specify that you are an NRI. You can appoint an Indian representative to act on your behalf with a power of attorney.