Real estate in India is increasingly becoming a favourite investment hotspot, especially for NRIs looking to own a property in the homeland. Technological advances in the realty sector have also made it easier for NRIs to buy property in India along with the implementation of RERA bill which simplifies the investment process. If you too are looking to invest in India while settled abroad, it is crucial to know about property documentation. We have compiled a list of all the necessary documents that NRIs need while buying a property in India:
Indian Passport or Overseas Citizen of India (OCI) Card
If you are an NRI, the Indian passport is one of the most important documents that you must have to buy a property in India. However, if you hold a passport of a foreign country, then you need to show your Person of Indian Origin (PIO) card. If you are an individual who is not a citizen of India but eligible to become an Indian citizen, i.e. if one of your parents is an Indian, you will need an overseas citizen of India (OCI) card. If you don’t have these cards, you can apply for these cards in the Indian embassy or with the foreign consulate in the country in of the country you live in. You may need to produce your parents' birth certificate as proof of your status.
If you’re planning on leasing out the property you buy or, if you plan to sell out the property sometime in the future, you need to have a Permanent Account Number (PAN) card. All the capital gains you make from the sales will come under the capital gains tax. NRIs have to fill the Form 49A which is available online on the websites of UTI Infrastructure Technology and Services Limited (UTIITSL) and National Securities Depository Limited (NSDL) and apply for a new PAN card. Charges for a PAN card might vary depending on whether the correspondence address provided by the NRI is within India or in another country.
Power of Attorney
If an NRI cannot be physically present in India for the overall process, then having a power of attorney is the best option where the representative will be present for the process of registration, sale execution, possession and rest of the processes. In this context, it indicates that an NRI can choose their trusted acquaintance such as a close relative, friend or even colleague and allow them (legally) to complete the transaction on his behalf. To get a valid POA you have to visit the Indian Embassy of the city and country where you are located and carry the procedure of POA with the required documents and photos, NRIs left thumb impression, signature in front of the consulate officer. Once this document has been attested, you will need to send it to India within three months for the adjudication process. Then, the attorney will be registered in the registrar’s office and the entire process will be complete.
Documents required for NRIs while applying for a home loan
If you are a salaried NRI and are planning to apply for a home loan, then you will need to arm yourself with a long list of documents. NRIs can purchase a property through a home loan, with multiple banks across India offering loans tailor-made for NRIs. Here’s a list of all the necessary documents you need to have while applying for a housing loan.
Passport and Visa Copy
A copy of your employment contract, appointment letter or work permit, whichever is applicable.
Latest salary certificate (attested by the embassy, if the salary is not bank credited)
Pay slips from the last 6 months (if applicable)
Copies of the sanction letter of loans, obtained in India and abroad
Bank statement for the last six months from both your overseas bank account as well as your Non-Resident External (NRE)/ Non-Resident Overseas (NRO) account in India.
Self-declaration of your residential status
Related Post :- 10 Documents You Must Have For Buying A Property in India