Previously it was not easy for NRIs to acquire property in India. However, it became relatively easy now because of the legal reforms introduced by the government. The FEMA defines NRIs as the ones who live more than 182 days on a foreign soil. If such NRIs are to acquire property in India, the transaction is governed by RBI rules. All such transactions come under the purview of the FEMA. In this backdrop, the RBI allowed them to acquire some properties like agriculture land, horticulture gardens and farm houses. Moreover, there are no curbs on the NRIs to buy either land or commercial property.
The Company Act of 2013 facilitates NRIs acquiring property through an NRI living in India or an overseas citizen who is living in India.
- An NRI can inherit an immovable property in India from a person resident outside the country (persons acquiring property under the provisions of the Foreign Exchange Act) or from a person resident in India.A person residing outside India who is not an NRI or OCI can acquire an immovable property (other than agricultural land or farm house or
- plantation property) along with his or her NRI spouse. For that, funds received in India through banking channels through inward remittance from any place outside India or funds held in any non-resident account maintained in accordance with FEMA norms and RBI norms should be used.
- To acquire immovable property in India, all transactions should be done in Indian currency through NRI account in an authorized Indian bank. NRI must have Non-Resident Ordinary Account, Non-Resident External or Foreign Currency Account.
- BI allows NRIs to take home loans for property purchase in India. However, the concerned EMIs can be paid through normal banking channels by remittance from NRI’s foreign bank account, issuing post dated checks from the NNR E, NRO, FNNR account or electronic clearance service or from rental income.
- Power of attorney registration is mandatory for undertaking real estate transactions in many states in India. Power of Attorney is a legal document in which the NRI authorizes another person on their behalf to attend the registration and execution of documents related to purchase or sale of property.
- If you want to buy properties under construction, the property should be compulsorily registered with the RERA. Also, national banks should have pre-approved the project for issuing loans.
