Many Non-Resident Indians (NRIs) have not completely severed ties with the land of their birth. Besides maintaining ties with family and friends, this community is also involved in making investments in the country. In this article, we are providing information that will be helpful in avoiding NRI property disputes. The expat community makes a lot of investment in buying real estate in the country or acquires such assets through inheritance. However, their absence and ignorance about local laws can easily land their investment in trouble. The best way to steer clear of such hassles is to engage specialist NRI lawyers in India. However, it will also be sensible to possess some essential information about owning property in the country. This will be helpful in maintaining the assets and handling any issues.
What Types Of Properties Can NRIs Purchase?
NRIs are eligible to purchase residential as well as commercial properties in the country. There is also no restriction on the number of such assets that they can own. However, they cannot buy plantations, farmhouses, and agricultural land in the country. If an NRI wishes to purchase such a piece of real estate, then he/ she has to apply for special permission to the Reserve Bank of India. The only other way they can own such assets is through inheritance. The spouse of an NRI who does not belong to the community is allowed to purchase one immovable real estate jointly with his/her NRI spouse. Such persons also cannot own any property belonging to the restricted types mentioned above.
What Types Of Properties Can NRIs Inherit In India?
NRIs along with Persons of Indian Origin (PIOs) and even foreign nationals can inherit property in India. There is no restriction on the kind of such an asset that a resident can pass on to an inheritor. NRIs can inherit properties from a resident of the country and even a resident outside India. When the asset is being inherited from another non-resident, then it must be ensured that the person had acquired it according to the foreign exchange regulations which were enforced at the time of acquisition.
What Are The Important Documents That NRIs Need For Buying Property In India?
Another important information that can help avoid NRI property disputes is the documents needed by such persons to buy an immovable asset in the country. NRIs must have the following documents to purchase a property:
1. PAN Card: NRIs must have a PAN card in order to be able to buy or sell property in the country.
2. Indian Passport/ OCI Card: The Indian passport is another mandatory document for NRIs. in case, the non-resident has a foreign passport, then he/she can use the Overseas citizen of India (OCI) card.
3. NRO/ NRE/ FCNR Bank Account: NRIs must have a Non-resident Ordinary, Non-resident External or a Foreign Currency Non-repatriable bank account for such transactions.
4. Power of Attorney: In case, the non-resident wants to designate someone else to conduct a transaction, then he/she must grant a power of attorney to the individual.
How Can NRIs Avoid Property Disputes?
NRIs can avoid property disputes by taking the following precautions:
1. Do A Proper Title Search: NRI buyers must ensure that the seller possesses proper documents of ownership. They must verify the physical specifications of the asset mentioned in the title by visiting the property.
2. Possess Valid Ownership Documents: When non-residents inherit or buy an asset, they must make sure that they get completely legal ownership documents.
3. Hire A Real Estate Lawyer: It will be sensible if the expat hires a real estate attorney who specializes in NRI matters.
The best way to avoid NRI property disputes is to engage specialist NRI legal services for property transactions in India. This will ensure that an asset is acquired in a hassle-free and secure manner.