NRI Property Register: A Complete Checklist

Property purchases in India amongst NRIs are becoming popular investment options – both from the point of view of earning RoI or securing a home of one’s dreams in the country of their birth. Thanks to the real estate resurgence in India after the pandemic and the rise of luxury properties, more and more NRIs are buying residential and commercial properties before they become more expensive. 

So, how do you register an NRI property in India once you have bought it?

If you are a Non-Resident Indian (NRI) and you want to buy or sell property in India, you need to follow some rules and regulations. The NRI property register process also follows similar stringent rules that must be abided to stay in line with Indian law.

Here is a complete checklist of the steps you need to take to register your property as an NRI.

• Check your eligibility

As an NRI, you can buy or sell any type of property in India, except for agricultural land, plantation land, or farmhouses. You can also inherit such properties from your relatives, but you cannot buy them. You need to have a valid passport and a Person of Indian Origin (PIO) card or an Overseas Citizen of India (OCI) card to prove your identity and status.

• Choose a reliable agent

Buying or selling property in India can be a complex and time-consuming process, especially if you are not physically present in the country. You need to find a trustworthy and experienced agent who can help you with the legal formalities, documentation, verification, negotiation, and registration. You can also consult a lawyer or a chartered accountant for professional advice.

• Do your research

Before you finalize a deal, you need to do your homework and find out the market value, location, amenities, and legal status of the property. You should also check the title deed, tax receipts, encumbrance certificate, occupancy certificate, and other relevant documents to ensure that the property is free from any disputes or liabilities.

• Arrange the funds

As an NRI, you can pay for the property through your Non-Resident External (NRE) account, Non-Resident Ordinary (NRO) account, or Foreign Currency Non-Resident (FCNR) account. You can also avail a home loan from an Indian bank or a financial institution, subject to certain conditions and limits. You need to pay the stamp duty and registration charges in Indian rupees only.

• Register the property

The final step is to complete the NRI property register process by registering the property in your name at the sub-registrar's office. This is done in the jurisdiction where the property is located. You need to present the original and photocopies of the following documents:

• Passport and PIO/OCI card
• PAN card or Form 60
• Sale deed or agreement
• Power of attorney (if applicable)
• Passport size photographs
• Cheque or demand draft for stamp duty and registration fees

You can also appoint a representative through a power of attorney to register the property on your behalf, if you are unable to travel to India. The power of attorney should be attested by the Indian consulate or embassy in your country of residence.

Dos and Don'ts of NRI Property Registration

To avoid any legal or financial troubles, here is a summary of some dos and don'ts to follow during the NRI property register stage:

• Do check the credibility and reputation of the seller or developer before signing any contract.
• Do verify the ownership and title of the property through a lawyer or a government authority.
• Do obtain a no objection certificate (NOC) from the society or builder before buying or selling a property.
• Do keep all the receipts and documents related to the transaction safely.
• Do file your income tax returns and pay any applicable taxes on your property income in India.
• Don't deal with cash transactions or unregistered agents.
• Don't buy or sell any prohibited properties such as agricultural land, plantation land, or farmhouses.
• Don't violate any foreign exchange regulations or FEMA rules while transferring funds for the property.
• Don't forget to inform your bank about your property purchase or sale.
• Don't neglect to update your address and contact details with the authorities after registering your property.

Conclusion

By following these steps, you can register your property as an NRI without any hassle. However, you should also be aware of the tax implications and repatriation rules that apply to NRIs who own property in India. For more information, you can visit the official website of the Income Tax Department of India or consult a tax expert. All the best!