A Simple Guide For Property Registration in India, For NRIs

Posted by Prajin on September 17th, 2021

Global economic conditions along with the depreciation of the value of the Indian currency have proven to provide lucrative opportunities for NRIs to invest in the real estate sector. Saying that more and more NRI property investors and buyers are showing interest in owning property back in India even during these harsh times with the pandemic. They all have reasons. 

Although NRIs do not need to meet any special requirements or permissions to buy property in India, they do need to register the property to legally transfer the property in their name. 

So, what’s the procedure? 

The overall property registration process has simplified over the years and involves the usual necessary paperwork. For instance, for NRI property investment in Bangalore, all that the NRI applicant needs to register the property is to submit a written application to the authority such as the Sub-Divisional Magistrate or the Sub- Registrar of the area. The following steps include stamp duty and paying the fee for the transfer/ sale of the deed. 

The registration process is then finally completed with the authorized signatures from signatories of both parties (the seller and the buyer). However, in this step, two witnesses are also required. 

For successful and quick completion of the registration, the signatories must supply the sub-registrar with all the necessary documents which include their government identification proof, property card, original documents, and proof of payment of stamp duty. 

In the case of NRIs, there is no compulsion of them being physically present in the country to complete the whole procedure successfully. Nonetheless, a trusted individual (relative or friend) must be assigned with the Power of Attorney to go ahead with decision making and get the paperwork completed as your representative. 

So, what needs to be considered before registering your property? 

Well, the process may look very simple. Nevertheless, few important points must be considered before going ahead with the registration of your property. 

• Verify that the seller or the current owners are producing relevant and authentic documents. Moreover, ensure that the property comes with no encumbrances such as outstanding mortgages, unpaid debts, unpaid property taxes, and others. 

• Make sure all the documents required are in places- such as the list of property documents the NRI needed to buy property in India and the documents needed by the NRI for the purchase procedure. The documents required at the time of registration must also be in place. 

• Evaluation of the property according to the market value and the location and type of the property. This will be required to calculate the stamp duty needed to be paid for the property registration. 

• The stamp paper duty must be ready and must be collected during registration as the stamp duty varies from state to state. It also depends on the type and location of the property. 

• The preparation of the sale deed is done by an attorney on the behalf of the NRI. The sale deed depends on the nature of the property being purchased. The sale deed comprises the details of both the parties, the details of the property involved, and the specific required terms and conditions. 

If you are looking for deeper insights into NRI property investment in Bangalore, we are here to help you out. We are one of the leading developers of Bangalore City and we serve our customers with a lifetime of  satisfaction. 

Content Reference: The Financial Times, Economic Times.