Seven Legal Factors NRIs Should Be Aware Of While Investing In Indian Realty

A Non Resident Indian (NRI) is a person who resides outside India. He or she can either be a citizen of India or a person of Indian origin (PIO). Being Indian, most of the NRIs across the world prefer to invest in India.


Real Estate is one the most preferred investment options due to its attractive returns in India. However, NRIs who prefer to invest in India need to be aware of the legal factors that rule the realty industry.

Here are some of the legal factors NRIs should be aware of:

  1. Documents required: As per the KYC (Know Your Customer) norms, NRIs must submit the following documents If they are investing in Indian Realty:
    I. Copy of Passport
    II. Copy of PAN Card
    III. Proof Of Address Abroad (Either Permanent or Correspondence)
  2. Opening Of Savings Account: An NRI have the right to open an NRI savings account
    With any bank authorized to deal in foreign exchange in India without the permission of RBI. Also, NRIs can maintain the savings account for transactions in rupees.
  3. Mode Of Payment: An NRI can make real estate investment in India through Non Resident Ordinary (NRO) Savings Account or Non Resident External (NRE) Savings Account. However, payment cannot be made through travelers’ check or foreign currency notes.
  4. Property Acquisition: Other than agricultural land or farmhouse or plantation property, NRIs can acquire any other immovable properties. NRIs can acquire the property:
    I.  In the form of purchase, or
    II.  As gift from an Indian citizen, or
    III. From a person residing outside India but a with an Indian citizenship, or
    IV. From a person from India residing outside.
  5. Document of Title: NRI can derive title to the property including the earlier title deeds, revenue records, land records, no dues certificate and title certificate from a lawyer.
  6. Dealing with Legal Issues: NRI may seek advice from any Chartered Accountant (CA) and a lawyer in India to deal with any type of legal issues related to property investment.
  7. Financial Assistance: NRI may also avail a housing loan in the form of Indian Rupees from any Authorized Bank or Financial Institution.


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