If you are an NRI, acquiring property in India can be confusing and complex. The acquisition of property always follows a great deal of deliberation. Hence, it is better to thoroughly read through all the documents before investing.
The following legal information will help you understand the process better-
NRIs holding valid Indian passports do not require permissions from RBI for acquiring immovable property for residential purposes.
NRIs holding Indian passports may pay the purchase consideration either by remittance of funds from abroad (through normal banking channels) or out of NRO/ NRE/FCNR accounts.
Obtain a title report by the solicitor of the property and go through it with a fine toothcomb. Do ensure there are no encroachments, hidden conditions written in fine print, or any kind of reservations by the State Government.
Thoroughly check the clearance reports to ensure that the property is not disputed. For example, if the project is being constructed near a heritage building, there may be issues with the Heritage department. Remember, the lack of clearance of titles will hamper the availability of home loans.
This is the area of the apartment that does not include the area of the walls i.e. the area of the apartment that a carpet can cover.
This is the area of the apartment that includes the area covered by the walls.
SUPER BUILT-UP AREA:
This includes the built-up areas such as the lobby, lifts, stairs etc. This term is therefore only applicable for multi-dwelling units, such as flat complexes
There are various implications of entering into a lease agreement such as you have to pay the stamp duty, the lease agreement has to be registered etc.
REGISTER A PROPERTY
By registering the transaction of an immovable property, it becomes permanent public record. Title or interest can be acquired only if the deed is registered.
If you purchase a new flat within two years of the date of sale of the original flat and invest the entire amount of capital gained into the new flat, you will not have to pay any capital gains tax.