LEGAL FAQ's FOR NRI's

Many of the queries that you have regarding real estate transactions are not unique. Many before you and many after you may have faced the same problems. Check out our Frequently Asked Questions section, which are all answered by our solicitors and benefit from the problems others have faced and the solutions they found to tackle the problems. This will help you leap-frog into the next level without making the same mistakes that others made before you.

What documents are required while buying commercial or residential property?

A: Checklist for buying residential or commercial property.

Market Trends about prevalent rates of property in the vicinity and last known transactions

Identify the property you wish to purchase

Formulate commercial terms

Distinguish between terms and conditions of the contract which are negotiable and those which are fixed e.g. price, payment schedule, time of completion etc.

Avail of services of NRIREALESTATES.com. List your requirements with a reputed broker

Ask for photocopies of the all deeds of title related to the property to be purchased. Examine the deeds to establish the ownership of the property by seller, preferably through an advocate. Ascertain the survey number, village and registration district of the property as these details are required for registration of the sale. Previous encumbrances and loans, if any, on the property must be cleared before completion of purchase of the property. The title of the Vendor to the property must be clear and marketable.

Finalise commercial terms of purchase of the property. Ascertain transfer fees, stamp duty and registration charges to be paid on purchase of the property.

Ascertain outgoings to be paid for the property i.e. property tax, water and electricity charges, society charges, maintenance charges.

Request Vendor to obtain, if applicable, consent, permission, sanction, no objection certificate of various authorities such as the (a) society (b) the income tax authority (c) Municipal Corporation (d) the competent authority under the Urban Land Ceiling and Regulation Act (e) any other authority

Will you require a loan for making payment of the consideration amount. Ask for a pre-approval letter from the lending institution.

Permanent Account Number of Vendor and Purchaser under Income Tax laws Payment of stamp duty on the formal agreement or document for transfer of the property, signing by both the Vendor and Purchaser and registration

After payment of the entire sale price, take over legal possession of the property alongwith documents of title in original from the Vendor of the property

Change name of the holder of the property to the purchaser in the records of the society, electricity company, municipal corporation, Index II etc.

 

A: Yes. The formalities and forms may vary From nrirealg.state to State depending on where the property is situated.

Every State has its set forms under the Registration Rules that are required to be filled and filed along with and at the time of Registration of Sale Deed/Transfer Deed.

Under the provisions of the Income Tax Act and Rules for a transaction of sale, it is now compulsory for the Purchaser and Seller to give their Permanent Account Number and in the event of either the Seller and/ or the Purchaser would be required to fill Form 60 of the Income-Tax Rules.

In case of either the Purchaser or the Seller being a Non-Resident Indian, not assessed to tax in India, such a Party would be required to file Form 60 of the Income-Tax Rules.

Within what time period should an agreement/deed have to be registered?

A. The property agreement should be registered with the Sub-registrar of assurances under the provisions of the Indian Registration Act within four months of the date of its execution.

What are all the important documents one should check before buying any property?

A If you want to purchase a property, you have to look at the approved layout plan, approved building plan and ownership documents. You need to get title and document search conducted by a competent advocate. It's a professional tool to be done with professional assistance.

Who is liable to pay Stamp Duty, the buyer or the seller?