India is a country of strict and lengthy documentation procedures. Major paperwork is demanded in fulfilling all the formalities before you can actually own a property in India. But, buying a property in India for NRIs is a nightmare because it involves so much paperwork; more than a resident of India. It involves providing the right & authenticated papers to the authorities & banks in case you need a home loan & acquiring several other documents to ensure that you have the ownership over the property.
Here are the essential documents required by an NRI to buy a property in India
An NRI has to provide the documents in support of his/her identity proof.
- PAN Card
An NRI has to provide the documents in support of his/her address.
- Electricity or telephone bills
- Ration cards
- Life insurance policy
- Bank Statements of the past six months as they hold NRE & NRO account in India.
- Salary slips of the employer along with the copies of loan sanction letter if he/she has availed a loan in India or abroad previously.
The original Sales Deed works as one of the most important document when buying property in India. This sales deed document is also essential because it proves the ownership of the asset. It is executed when the final transfer of the title passes from the seller to the buyer. Sales deed must be registered with the registrar under whose jurisdiction the property is located within 4 months from the date of execution.
An allotment letter is one of the most essential documents required for getting a home loan. A developer or the housing authority, stating the description of the property and details of the amount paid by the NRI to the developer, issues it. This confirms the ownership of the NRI on the said property.
Documents from society
There are as many as 19 NOCs that have to be acquired by a developer from different authorities while building a housing property. But an NRI buying directly from the developer or from the current owner should obtain copies of the NOCs from the respective individuals & maintain records.
This is necessary to assure that the property is free from all the legal dues. In India, Form 15 is issued if a property has any encumbrance registered; otherwise, Form 16 will be given to the owner, stating there are no encumbrances
Power of Attorney Certificate
Being an NRI, you do not have to be physically present in India in order to complete the property transactions. NRIs can appoint a legal representative in India, and transfer rights to execute the transaction through Power of Attorney. The power of attorney should be executed on a stamp paper duly signed by the NRI before the consulate or the lawyer of the country where he is residing.
Global Indian Solutions can assist you with getting all the documents ready & updated for your property purchase in India.