Layout of Document, we suggest : Being an NRI!

Which Documents Would You Need As An NRI?

If you are a Non-Resident Indian (NRI) considering purchasing property in India, it is crucial to know which documents you will need. Buying property involves a range of legal procedures and paperwork; having the necessary documents facilitates a smooth and transparent transaction. 

This guide aims to provide an overview of the recommended document layout for NRIs purchasing property in India.

By familiarising yourself with these essential documents, you can navigate the intricacies of the real estate market with confidence and ensure a hassle-free property purchase in India.

Suggested Document Layout for NRI Planning to Buy Real Estate in India

Here’s a list of documents that NRIs need before investing in the Indian real estate market:

Proof of Identity

• Valid passport (with visa)
• Overseas Citizen of India (OCI) card
• Person of Indian Origin (PIO) card, if applicable

For Non-Resident Indians (NRIs) wishing to purchase property in India, it is necessary to present their Indian passport as a proof of identity. However, if you possess a foreign passport, you are eligible to buy property in India as long as you possess either an OCI (Overseas Citizen of India) card or a PIO (Persons of Indian Origin) card. 

NOTE: PAN card is needed for property transactions. 

Proof of Address

• Address proof from the home country (utility bills, bank statements, etc.)
• Indian address proof (if available)

Power of Attorney (PoA)

In situations where Non-Resident Indians (NRIs) are unable to be physically present in India to purchase property, it is essential for them to show a power of attorney document. However, it’s important to emphasise that a specific power of attorney, which is both registered and notarized, is required rather than a general power of attorney. This grants authority to a trusted representative in India to act on behalf of the NRI buyer.

Essential Documents for NRI to Obtain a Home Loan

The following documents are required by NRIs to apply for a home loan:

• Copy of Indian Passport and Visa 

• If NRIs don’t have an Indian passport, they must have-

1. PIO card (If holding a foreign passport)
2. OCI card (If parents are Indian citizens)

• Latest Salary Certificate / Payslips of the past six months

• Work Permit/ Appointment Letter/ Employment Contract from the country of residence

• Latest Income Tax Returns

• Bureau Report from the country of residence

• Bank Statements of NRE and NRO Accounts for the last year

• Power of Attorney in the bank’s specified format (if not present in India for property transaction execution)

Being NRI : What Documents Pertaining to the Property Should You Request?

To ensure a seamless transaction and a trouble-free ownership experience, it is crucial to request and verify the following important property documents:

Title Deed (in the seller’s name)

It is essential to confirm that the property’s title deed is in the name of the seller. Certain states may require additional documentation, such as the e-Khata for property taxes, if purchasing property in Bengaluru.

Approved Plan

Ensure that the property has an approved plan from the relevant authorities.

Building Permit

Verify that the property’s construction has the necessary building permit.

Occupancy Certificate (if applicable)

In the case of a ready building, obtain the Occupancy Certificate to confirm that it meets the necessary standards for occupancy.

Previous Title Deeds (if available)

It can be beneficial to review any earlier title deeds associated with the real estate.

Updated Encumbrance Certificate

Obtain an up-to-date Encumbrance Certificate to check for any existing legal or financial liabilities on the property.

Share Certificate (for Cooperative Housing Societies)

If the property is part of a cooperative housing society, request the Share Certificate.

NOC from the Society

Obtain a No Objection Certificate (NOC) from the society, if applicable.

RERA Registration (if applicable)

In jurisdictions where the Real Estate Regulatory Authority (RERA) is applicable, ensure that the property has the necessary registration.

Once these documents are verified and found to be in order, you can proceed further with the preparation of a sale agreement for a property purchase. 

Basic Documents for NRI Registration Process

In addition to your identification proof documents, such as your passport and PAN card, you will be required to provide address proof documents, such as utility bills, along with passport-sized photographs, for the registration of the sale deed.

Why is Proper Document Layout Necessary?

Buying a home is a big decision, particularly for Non-Resident Indians (NRIs) who want to invest in real estate in India. But navigating the associated legal and administrative procedures can be challenging and intimidating, especially when it comes to documentation. 

To ensure a seamless and transparent property transaction for NRIs, it is essential to ensure adequate document arrangement. NRIs can protect their rights and accelerate the entire purchasing process by methodically organising and preserving the required papers. 

Below-mentioned are the reasons why maintaining a proper layout of documents is crucial for NRIs who are planning to purchase property in India:

NRI Legal Compliance

Proper documentation guarantees adherence to applicable laws and rules governing real estate transactions in India, protecting the buyer’s rights and interests.

Transaction Transparency

A well-organised document layout promotes transparency in the buying process, reducing the risk of fraudulent activities and disputes.

Financing and NRI Loan Procedures

Since banks and other financial organisations demand thorough verification of income, assets, and property information, correct documentation is essential.

Record Keeping

Maintaining an organised document structure makes it possible to preserve accurate records, make information retrieval simple in the future, and facilitate any required legal or financial actions.

Smooth Transaction Process

A well-structured document layout streamlines the purchasing process, cutting down on delays and guaranteeing a more pleasant experience for the NRI buyer.

Power of Attorney Requirements

Proper document layout is essential if an NRI buyer cannot be physically present during the property purchase. A suitable document layout guarantees the appointment of a dependable agent to act on the buyer’s behalf.

Frequently Asked Questions (FAQs)