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What You Should Know as an NRI investing in Real Estate


by SA Homes, Posted on November 20, 2015



The Indian economy provides a conducive environment for investors and so real estate has now become a lucrative investment option for non-residential Indians (NRIs).

The followings are guidelines NRIs or PIOs must follow while investing in real estate in India:

  • As per norms of the RBI, NRIs can invest in both residential and commercial properties and buy as many properties as they like but they cannot purchase agricultural lands and plantations. Farm lands can only be inherited. If you plan on acquiring flats in Kalpathy  built on agricultural lands, make sure the builder has satisfied all the legal requisites to build on the farm lands.
  • If you have decided to buy an apartment in Palakkad for instance, ensure that the property is legitimate.Verify and ensure that the property is free of litigation and do not violate any legal standards.You may also need to ensure wether the seller is the genuine owner of the property and is entitled to sell it.
  • Ensure the credibility of the builder/realtor. Running a background check on the builder’s previous projects will give you an insight into his/her  quality of work.
  • Make sure that the property has all the required clearances from the government, municipal authorities and other local bodies. Make sure all the legal documents are in place and the required taxes are paid.
  • Check if the property you intend to buy is close to the basic amenities such as the market place, educational institutions, medical facilities etc.
  • It is advisable to seek the help of a lawyer before you close the deal. The lawyer can verify all the documents and guide you through all the legal procedures involved in the transaction. This way you will have all the legal aspects covered.
  • Many banks offer attractive offers and interest rates for NRIs. It is in your best interest to choose a reputed bank which offers benefits. Make your down payments on time to avoid legal consequences.
  • The down payment you make and the subsequent payments if any, should be made from your NRO/NRE accounts that you hold in India. You cannot make payments from abroad. You can assign a power of attorney to a close family member or a trusted friend, to handle all the procedures.



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