The Indian property market has been an attractive place for the NRIs in terms of big investments. Owning a property in India makes them feel closer to their roots and natives. For some NRIs, the intention may be to upgrade their family home and provide their parents with a better living place while for others, it may be just clever investment opportunity for a long-term profit.
Till recent times, the Indian real estate market was insufficiently regulated. Over a period of time there were many rules introduced for a systematic flow of business in the realty sector, but none was followed. Following the trend to tempt NRI property buyers, Indian developers introduced various lucrative offers at regular intervals to promote sales of their Indian project overseas. Upon successful completion of NRI sales most of these offers and freebies were forgotten or conveniently denied by the developers under various pretext. Many times the promise of on-time possession, premium amenities and more proved to be a hoax. Ultimately what the NRI buyers gets for the developer is unlimited excuses for project delays, inappropriate information related to the project completion, negligence of the builder and notices from home loan provider / banks for the pending Pre-Emi’s due to be paid by the developer.
Due to this unruly truth of the realty world, many NRIs lost their hard-earned money speculating to gain a substantial profit. These de-motivating factors left the NRI realty buyers baffled and drove them away from investing in the Indian real estate sector.
Foreseeing the role of real estate sector in the development of the country, the Government of India took a step forward and came up with an idea of an Act to discipline the real estate sector. Although it took years, the government succeeded and notified the all-new, Real Estate (Regulation & Development) Act , abbreviated as RERA On 1st May 2016.
Unsurprisingly, RERA has brought a revolution in the Indian real estate market. It has mandated registration of real estate projects and agents. It also ensures that the buyers’ best interest is protected and they get the full value of their money and time invested.
Advantages of RERA for NRIs looking forward to invest in the real estate sector of India.
• Under RERA, real estate projects in each city will be monitored by respective Real Estate Regulatory Authority of that state, thus ensuring higher transparency and providing safety norms to the buyers.
• Due to the presence of RERA, the investment in the Indian realty sector will reap regular rental returns along with the appreciation of the property.
• The RERA has been formulated taking into consideration many prevailing rules and policies, thus maximizing the scope of investment in India for the NRIs.
• RERA has simplified the purchasing process, thus making it easier for buyers to do transactions and avail the benefits of opting for the home loan.
• The interesting investment opportunities with lighter regulations has increased the transparency, price stability and enhanced affordability.
The suo motto of RERA to propel the realty sector of India on the right track has brought many positive changes in the said sector, making it more reliable for NRIs from an investment point of view.
Checklist of important documents for NRIs buying real estate property in India
Although the RERA is there to safeguard the investment of buyers, we would recommend NRI buyers to follow a careful and vigilant documentation while investing in the sector. Below are the documents that an NRI buyer must keep handy while buying property in their homeland.
Power of Attorney (POA)
The major problem faced by the NRIs while buying a property was their physical presence while doing any property related transactions. After some amendments in the rules, NRIs can now assign a person in India who holds the ‘Power of Attorney’ to fulfil the formalities like property buying, selling, home loan process, property registration etc. on their behalf and the person is termed as ‘Attorney’ whereas the person providing the power is termed as ‘Grantor’
The Power of Attorney is executed on a stamp duty which is duly signed by the NRI who is the grantor in front of a lawyer of that country where he is currently residing. Further, a solicitor must attest the deed and send it to India for adjudication within three months of execution.
Passport or PIO Card or OCI cards
NRIs undergo many regulatory barriers as compared to domestic investors. It is mandatory to possess an Indian passport to invest in the Indian property market. However a person having his/her origin in India, but residing in a foreign country and holds the status of a Person of Indian Origin (PIO) or Overseas Citizenship of India (OCI), then the person has to show the PIO or OCI cards. A person can apply for these cards in the Indian Embassy or with the foreign consulate of the country where he is currently residing. In addition, the person has to produce his/her parents’ birth certificates to prove the PIO or OCI status.
For any real estate transactions in India, an NRI must hold an Indian Permanent Account Number (PAN) card. NRIs can apply for PAN card online by visiting the websites of UTI Infrastructure Technology and Services Limited (UTIITSL) and National Securities Depository Limited (NSDL) and then filling form 49A.
The modern reform by the Indian Government has made the real estate sector more lucrative and is regaining its popularity in the global market.
Additionally, we advise property buyers, including NRIs to buy only RERA registered properties in India, in order to skip the sufferings. If you are going to buy a property via a real estate agent then you must ensure that the agent/agency is registered with RERA.
You can know more about the Indian Real Estate (Regulation & Development) Act by visiting our RERA Academy . At RERA Academy, we have curated lots of RERA related information such as state-wise RERA rules, RERA forms, RERA fee and more.
Apna RERA also took an initiative to spread awareness about the RERA by launching the Campaign for RERA Awareness in India (CRAI) . Under the banner of CRAI, we have helped lots of property buyers in knowing about the RERA and assisted them in purchasing RERA registered projects .
Published on: – 21ST September 2017