Have you decided on a bungalow, an apartment or a penthouse? The overall size and area of the building you wish to purchase depends largely on the size of your family, your personal requirements and the budget framework if any. Buying a home is a one-time investment you make, and so think from the long-term perspective. Like, a newly married couple could rather settle for a one bedroom apartment; but any new addition to the family in the future should force you to consider an even bigger home.
Location is one of the main issues to catch your concern, when buying a new home. While deciding to buy a new home, make sure the location permits easy accessibility or proximity to such everyday conveniences like office, shopping etc. Also, it is a necessity that your location houses schools and hospitals at a nearby distance. Public transport accessibility too is a crucial factor
Is it legally approved for foreign nationals of Indian origin to own real estate properties in India?
Foreign nationals of Indian origin, whether resident in India or abroad, have been legally backed to purchase and keep immovable property in India. They are allowed to make payment either out of inward remittances in foreign exchange through normal banking channels or out of funds from NRE/FCNR accounts maintained with banks within India. Also on purchasing the property, they are required to file a declaration in form IPI 7 with the Central Office of Reserve Bank, Bombay within not more than 90 days from the date of purchase of Immovable property.
There are certain banks authorised by the Reserve Bank of India that are permitted to grant loans to NRIs holding NRE, NRO and FCNR accounts in India against their security of term deposits. NRIs can avail loans for the acquisition of flat/house in India against NRE or FCNR fixed deposits on repatriable basis, provided the amount to be repatriated is governed by Foreign Exchange Management Regulation (Acquisition and Transfer of Immovable Property in India).
NRIs can open and maintain bank accounts in India without the prior permission RBI.
For the list of authorised dealers that can open accounts in the name of NRIs in India refer to RBI Rules (External website that opens in a new window).
- Development Agreement : The Development Agreement is an agreement entered into by the builder with the landowner if the builder does not already own the land or has a contract with the landowner. It contains details regarding the terms and conditions on which the landowner has permitted development on his property. By this agreement, the landowner engages the developer to develop and build on their plot of land. This agreement generally may also have a Power of Attorney in favor of the developer.
- Approved Building Plan : The building plan has to be approved by the Corporation or the concerned authority. The approved building plans should be checked.
- Commencement Certificate : The certificate, issued by the Municipal Corporation permits the developer to begin construction once the plans have been approved.
- Completion Certificate : This is a Certificate given by the concerned authorities to the developer once the building project work is complete and fit for occupation.
Documents relevant to the Land / Project / Building / Apartment Documents relating to the Premises Stamp Duty and Registration
Land Documents Conveyance Deed or Sale Deed This is a deed document. By this, the title of property is ‘conveyed’ by the seller to the purchaser. Conveyance is the act of transferring ownership of the property from a seller to the buyer. This document will help you ascertain whether the flat in an apartment complex which you are buying, is on land belonging to the society/ builder/development authority in which the property is located. 7/12 Extract This document issued by the concerned land authorities contains details like survey numbers, area, date – from which current owner is registered as owner. Index II This document issued by the Sub Registrar’s office mentions the names of the sellers & purchasers of the property, for which the document is registered. Title Certificate An advocate issues the Title Certificate after conducting a search on the title of the property intended for purchase. The title certificate would state if the property is unencumbered and has a clear marketable title. Usually, a search on the title of the property is taken for a period of the last 30 years. It is mandatory for the developer to annex a copy of these reports in the “Agreement for Sale” with the intended purchaser of the apartment. These documents would state whether the title to the property is clear, marketable and free from encumbrance. It would state clearly whether or not there is any existing mortgage, litigation, condition or claim, which is likely to affect the title of the buyer adversely. Non-Agricultural Land Permission If the land you are planning to buy is a paddy field or agricultural land and if you plant to use it for residential/commercial/industrial purpose, the agricultural land has to be converted to non-agricultural land and an Non Agriculture Order has to be obtained from the Collector of the District where the property is located. Along with this, one needs to take the latest receipts evidencing the payment of Non Agriculture Tax. In cases where the conversion from agricultural use to non-agriculture use is not done within the stipulated period then, there should be an order from the concerned authority extending the period. 37(I) Clearance [No objection certificate under section 269 (3) of the Income Tax Act, 1961] If any immovable property in cities specified by the Appropriate Authority is transacted above a certain value, it needs to obtain a No Objection Certificate from the Appropriate Authority as defined under the Income Tax Act. A transaction would be incomplete and invalid if this clearance is not obtained. A statement in Form no. 37(I) needs to be jointly submitted by the seller and purchaser. The appropriate authority would issue a No Objection Certificate, if it feels that the property has not been undervalued. If the appropriate authority feels that the property is undervalued, then it would do pre-emptive purchase of this property and sell it subsequently through an auction/tender.