NRI Selling Property in India
NRI Selling Property in India without visiting India,
is it possible?
Overview of NRI Selling Property in India
The matter of NRI Selling property in India is very much possible but the process can be cumbersome. Often selling the property isn’t the hardest part, getting the funds to the foreign country is tricky and the sale may have unanticipated tax implications. Each sale is unique, so tax implications could also differ. Hence, before deciding when to sell, one must consult an expert to see possible tax remedies and bring transaction costs down.
At Law Advisor India, we’ve figured out the least tiresome and most cost effective procedure for NRI Selling Property in India. Click the button below for free legal advice from expert NRI lawyers.
Procedure for NRI Selling Property in India
There are 2 broad ways for NRI selling property in India:
•Step 1: Identification of buyer
For NRI selling property in India, the first step would be to identify and get familiar with the buyer. We will have to understand if the person buying property in India is a known to you who’s an NRI selling property or has the connection been established through an advertisement or something similar.
•Step 2: Consultation
We’ll understand your exact query regarding NRI selling property in India. It would involve questions like: if you are facing any taxation issue? Or the extensive background check of the buyer or finding the right buyer. New Ticket will be generated along with your case summary and submitted in our system for further action.
•Step 3: Finalizing/Matching Lawyer
We’ll assign you a property lawyer who has the most experience and a successful history in cases similar to yours. Our very resourceful lawyers as well as your personalized case manager would be available on call 24*7 at timings which suit you the most. The aim is to simplify the process of NRI buying property in India for you and to serve you with expedited justice.
•Step 4: Submission of documents
You’d be requested to submit the original/attested photocopies of the documents which are required in the procedure of NRI selling property in India to the NRI lawyer which has now been assigned to you.
•Step 5: Completion of buying of property
The real estate will be lawfully handed over to you with minimal number of visits to India for you. This would mark the closure of our drill of NRI selling property in India.
From Foreign Country:
The procedure will be similar however it will be undertaken by the person you will be giving the special power of attorney to. To know more, call us now to get connected with best NRI lawyers for free legal advice.
Documents Required by NRI for Selling Property in India
Why Law Advisor India?
Law Advisor India along with the panel of effective and resourceful NRI lawyers provides fastest NRI legal services. If you’re an NRI and are stuck with any legal work in India. We ensure we’ll get it done for you in record time.
Cost of NRI Selling Property in India starts from 35$ and varies according to the complexity of your case. This 35$ includes the primary NRI Property lawyer consultation fees along with the documentation cost.
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FAQs about NRI Selling Property in India
It is correct that NRIs are not permitted to enroll for Aadhar card but at the same time, it is not necessary that Aadhar Card is required for selling property. In other words, NRI can conveniently sell his property in India without the said form of document i.e., Aadhar Card.
Also, the list of documents that NRI needs are:
- For identity proof- Passport, PAN Card (If an NRI doesn’t have a PAN Card then, one can apply for one by sending the signed application form 49AA along with ID and address proof documents. Alternatively, an NRI can also furnish Form 60 in the absence of a PAN due to some unavoidable reasons.)
- For address proof- Electricity Bill, Life Insurance documents
- Property related document: Sale deed, Allotment letter by the builder, NOC, Original Share Certificate, Encumbrance Certificate
- A seller must keep all the property tax receipts handy. Also, if an NRI has been holding a property for a certain period and earning an income out of it, the transaction becomes taxable. In that case, keep the tax returns documents ready.
- In the absence of originals of the above documents, the seller must approach a lawyer who would help him with a certificate to prove that he is the rightful owner of the property. The lawyer will do his due diligence and pull out a title report of the property in question. After these formalities, the lawyer would then issue a certificate stating the details of the rightful owner of the property.
An NRI can put on the market his/her residential or commercial property to any person residing in India or another NRI or a person of Indian origin (PIO). One can also mortgage the property to a certified real estate dealer or a financial establishment regarding with home loans. However, if the property is an agricultural land or farming infrastructure, it can only be bought by a resident Indian citizen.
The physical presence of the seller i.e., NRI is absent most of the times. Hence, all the necessary paperwork should be carefully looked after. For this step, an NRI can also appoint a power of attorney.
To get a suitable POA you have to visit the Indian Embassy of the city and country where you are situated and sign the document in front of the consulate officer. The documents also involve a photograph, your left thumb impression and your signature for it to be considered as valid.
Some of the paperwork requires the following documents-
1. Title of the property marked under seller’s name.
2. NOC (No objection Certificate) depicting that the property is not under any debts or any unauthorized conduct.
3. Occupationcy Certificate (OC) which is provided by the Municipal Corporation of India.
4. Sanction certificate.
5. PAN Card (Permanent Account Number)
6. Non-Resident Ordinary (NRO) bank account which is a savings or current account that NRI maintain to administer the income grossed in India. The sales proceeds from will be placed in this account as stated by the Foreign Exchange Management Act (FEMA).
Yes, an NRI can purchase property in India without being physically present in the country. There are several ways in which you can achieve this heavy duty task and that too with the help of the Indian Government. RBI (Reserve bank of India) has explicitly mentioned instructions so that anyone who is living abroad can buy property without any difficulties.
Note: It should also be clear that the immovable property bought by NRI should only be used for residential purposes or to complete any other requirement except agricultural land, farm house and/or plantation property. But even if an NRI want to buy any of the properties that comes under exception then, they have to obtain special permission from RBI which is not always guaranteed.
1. Under the RBI’s general authorization, an NRI can purchase a property, either individually or mutually with another NRI. The most competent way to buy property is adopting a Power of Attorney (POA)
2. Appoint a power of attorney who will be your personal legal counselor. He will suggest you all the matters related to real estate and all the other formalities because he is already an expertise in the field. This way there will be a direct contact between you and your required conditions through the way of an attorney. This method is officially used by many people because it is cost efficient and effective. The POA will do all the legal paperwork and close all the formalities.
- Under the laws governing inheritance among Hindus, Jains, Buddhists and Sikhs, Class-I heirs of a property can enter into a verbal memorandum of family settlement and divide the property on mutually agreeable terms. Since this oral agreement has been reached without using the partition deed as an instrument, the need to register the transaction is entirely avoided.
- However, in the absence of a partition deed, the shares of the co-owners remain undivided in this kind of arrangement. This also means, they are not free to sell, gift or transfer their share in their property on their own.
- Hence, the registration of partition deed is must to get reasonable shares in the property and also to have as a strict evidence officially in case any heir illegally possesses a property.