Documents Required for NRIs For Buying Property

Introduction

Non-Resident Indians view buying property in India as a caterer of several goals. It is the long-term capital growth and an emotional connection to their homeland. The rupee has recently fallen against the USD, serving as an excellent opportunity for the NRIs to invest in real estate. The reason is the countries where NRIs live have a higher currency value. 

Once you decide to invest your money and get involved in the process, you will find yourself surrounded by paperwork. To bring some clarity about the process, do check the documents you will require.

What are the documents required for an NRI to buy property in India?

The paperwork can be stressful, and you may be confused about what to collect. For all buyers of real estate, there is a list of required property paperwork. The banks will check these documents even when you apply for a house loan before approving anything. The primary property documents are:

1. Indian Passport/ Person Of India Origin (PIO) Card/ Overseas Citizen Of India (OCI) Card

There is a requirement for an Indian passport issued by the Ministry of External Affairs for investment in real estate in India. There are different types of passports: blue, white, diplomatic, and orange. The blue passport is for the general public. 

You require a Person of India Origin (PIO) card if you have a foreign passport. A person of Indian Origin card is given to those who have held an Indian passport or either/both of their parents/grandparents/great-grandparents who were born in and permanently resided in India.

An Overseas Citizen of India (OCI) card is required for anyone who is not an Indian citizen but was qualified to become one before or after the partition (or a child of such a person). An application can be submitted for these cards, or you can consult the Indian Embassy near your residence in your nation. You may also need your parent’s birth certificates as proof of being an OCI or PIO.

A PAN card or permanent account number is a unique identification number that is assigned to taxpayers in India. There are documents required for acquiring a PAN card as well, such as POI, Passport etc. You can apply for a PAN Card offline as well as online. The NRIs require a PAN (permanent account number) card to submit or fill any income tax returns in case a property has been rented by them. Additionally, if the NRI decides to sell the property in future, the profits from the sale will be counted in the total income and will be taxed.

3. Power Of Attorney

Power of Attorney is a legal document via which you can appoint any person to manage the property. The person can be an agent or an attorney. Using a power of attorney, another Indian citizen can carry out the real estate transaction on your behalf. You must sign this POA before a consular representative or notary public in your home country. If you offer a specific power of attorney to anyone in the city you wish to purchase the property, the process of registration will be easier and smoother. Along with that, the sale deed will be executed faster, and the possession will be transferred without any issues. This can be done if the NRI does not visit India frequently.

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4. Passport Size Photographs

There is a legal requirement in Indian law to attach a passport-size photograph of the buyer and seller during the property registration. Therefore, you need to bring passport-size pictures along with other documents.

5. Address Proof

Address proof is given as proof of your current residence, and you must submit your current address proof. The document that can act as address proof is your utility bills and your passport, PIO card or OCI card. 

NRIs may use money in a non-resident account or inward remittances to pay for real estate transactions. They might also get a home loan.

Process of home loan

Once the documents are ready, you will need funds to buy the property. The funds can also be obtained via a home loan, apart from other methods.

To apply for a house loan as a salaried NRI, you will need two photos of the applicant and each co-applicant, as well as documentation of their addresses. As address verification, utility bills or a driver's licence are acceptable. You must produce the last six months' bank statements from both your NRE (Non-Resident External) and NRO (Non-Resident Ordinary) accounts in India.

Additionally, you must present your most recent six months' bank statements of the salary account that you have in the nation where you work. In addition, you will need to provide a self-declaration of residency status, copies of your employer's wage records, and the sanction letters for any loans you've taken out both domestically and overseas. All these papers must be certified by the Indian embassy in the nation where you currently reside.

Ensure you have all the relevant real estate papers before approaching a bank about a home loan because of the lengthy documentation procedure involved. The list of required documents is as follows:

• A Passport and Visa Copy
• If you do not have a passport, a PIO Card or an OCI card is required
• A copy of the employment contract/appointment letter/work permit
• The latest salary certificate, which has been attested by the embassy, in case the salary is not credited to the bank
• The latest six months' pay slips
• Last 1 year’s bank statement of both overseas accounts and Non-Resident External or Non-Resident Ordinary (NRE / NRO) account
• Power of Attorney, which has to be executed in the format provided by the bank and attested by the Indian embassy

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Conclusion

Residential projects, as well as commercial projects, are being developed in India at a fast pace. Adani Reality is a key player in this development. It understands that purchasing a property in your home country is a way to be connected to the place for the NRIs. Adani Realty's residential properties cover four major cities, including Ahmedabad, Gurugram, Mumbai and Pune and ensure that the amenities in the homes provide peace and satisfaction. You can invest in the real-estate sector of India and can buy properties hassle-free with various organisations.