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Procedure for NRI Property Sale in Punjab

Real estate is regarded as one of India’s most lucrative sectors. People continuously invest in residential and commercial buildings because of the high and prospective future returns. Punjab appears to be rising as one of the real estate investment hotspots these days. Due to the increase in urban population, various opportunities for modern and futuristic infrastructure and architectural development have arisen in Punjab.¬†

With the increase in NRI property in Punjab, the rules and procedures to sell an NRI investment in real estate are also modified. As a result, the Punjab police have started changing the norms regulating NRI home selling. Once implemented, no one, even power of attorney (POA) holders, will be able to sell NRIs’ properties without their consent.

In India, where can an NRI/PIO invest in real estate? And how much is it?

NRIs/PIOs are authorised to invest in residential, commercial, and industrial real estate. The RBI has placed no restrictions on the amount or quantity of properties that can be acquired. NRIs/PIOs have traditionally invested in residential properties such as studios, apartments, plots, and individual houses.

NRIs also invest in commercial properties in new and developing locations to ensure a steady income stream. This allows them to benefit from price appreciation and profits later in their lives. NRIs/PIOs are known to invest in safer commercial properties, such as stores and space in malls and galleries. They also invest in REITs and office properties in India on occasion.

Can an NRI obtain a home loan in India?

In India, an NRI/PIO has a variety of purchasing possibilities. They can either utilize money from their Non-Resident External (NRE)/Non-Resident Ordinary (NRO) accounts or borrow money from an Indian bank.

According to the FEMA act, an NRI can utilize their balance in a Non-Resident Ordinary Rupee (NRO) account, Non-Resident Rupee (NRE) account, or Foreign Currency Non-Resident (FCNR) account to make a purchase. For acquiring a property in India, one can also apply for a bank loan from one of India’s many registered banks. While most house loans for NRIs have a payback length of 15-20 years, certain financial institutions now provide loans with a repayment period of 30 years. However, in the case of an NRI house loan, the EMI checks must be issued from the NRI’s NRE/ NRO account, not from another source such as their Indian savings account.

Where can an NRI not invest automatically?

An NRI is not authorised to acquire any agricultural land, plantation property, or farmhouse in India using the automatic method under the Foreign Exchange Management Act, 1999 (FEMA) and the Foreign Exchange Management Regulations.

An exemption to this restriction is an NRI requesting special authorisation from the RBI to acquire agricultural land, plantation property, or a farmhouse. The RBI may grant after considering certain grounds. In addition, they might inherit agricultural property from a local Indian.

What are the rules for NRI/PIO property sales in India?

While there are no limitations on selling a property to a resident Indian, an NRI or PIO who wants to sell a property to a Non-Resident Indian or a Person of Indian Origin may need RBI clearance (POI). It is illegal for an NRI/PIO to sell a property to a foreigner. The following is a list of documents that are necessary when selling a home in India:

  • Head to the property (in the name of the seller)
  • No objection certificate indicates that the property is free of liens, debts, and liens.
  • The municipal corporation issues an occupation certificate.
  • Approval of the plan or a sanction certificate
  • Certificate of co-operative ownership¬†

If the property’s NRI/PIO seller cannot visit India, they must appoint a representative through a power of attorney. A family member, friend, aide, legal expert, or professional service might serve as this representative.

Hampton Homes has many options to choose from, so if you are looking to purchase an NRI property, Hampton Homes ensures to get you one with all the documentation and verification. 

 

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