Date : 08 Aug, 2019
Post By Sankul Nagpal
When it comes to investment, property and real estate sector never gets old. The Indian real estate market has been a one-stop destination for NRIs in terms of making big investments.
Owning a property in their native place of birth gives them a feeling of being closer to their roots and natives. For some NRIs, the intention of investment may be to give their parents a bigger and better home while for others buying the property would be a smart investment option with good returns.
Indian developers and promoters often introduced attractive schemes and offers to sell their Indian project overseas. However, upon successful purchase, most of these schemes and offers are forgotten or simply denied by the developers. Many a times, even the on-time possession, premium as well as other project details turn out to be just hollow promises. Ultimately what the NRI's get is unjustified excuses for possession delays, incomplete information regarding project completion and a pretty bad experience.
Thus owing to the industries malpractices, thousands of NRI's lose out their hard-earned money. This makes the NRI's move away from investment in real estate.
Preventing the loss of reputation as well as trust of the NRI home buyers and to regulate the real estate sector, the government of India has come up with an Act that can get the real estate sector back on track. This is the Real Estate (Regulation and Development) Act 2016
Since its inception in 2016, RERA has been instrumental in bringing a revolutionary change in the real estate market. It has mandated registration of real estate projects and agents while also ensuring that the interest and rights of the buyers are protected.
Advantages of RERA for the prospective NRI buyers
Under the RERA Act, real estate projects and offerings shall be monitored by the respective Real Estate Regulatory Authority of each state ensuring higher transparency and safeguards to the prospective buyers. The RERA Act will also ensure that the investment in the Indian real estate sector will continue to give regular rental returns along with an appreciation of the project property.
The Act has been drafted taking into account many prevailing rules and regulations, thus maximizing the scope of investment in India for the NRI's. RERA has also simplified the purchasing process, thereby making it a lot easier for NRI buyers to carry out transactions and avail the benefits of home loans.
The working of RERA to revolutionize the real estate sector has resulted in many positive changes making the real estate sector a more reliable investment option for NRIs.
Essential documents required to buy property in India
Even though RERA protects the interests of prospective buyers, it is highly important to have the correct documentation handy before buying a property in India. Some of the most crucial documents required for the purchase of property in India are
Power of Attorney
The biggest challenge faced by NRI's while buying a property in India used to be their physical presence for any property related transactions. However, after some amendments in the relevant rules, NRIs can now assign/appoint a person in India who shall hold the ‘Power of Attorney’ to fulfil or complete the formalities like that of buying, selling, property registration etc. on their behalf.
Passport/ PIO Card/ OCI cards
NRIs are subjected to many regulatory barriers when compared to domestic investors. It is mandatory for any NRI to possess an Indian passport before investing in the Indian real estate sector. However NRI's having Person of Indian Origin (PIO) or Overseas Citizenship of India (OCI) that reflects their origin in India, but residence in a foreign country can also invest in Real Estate sector via their PIO or CIO cards.
For any real estate transactions in India, an NRI must hold an Indian Permanent Account Number (PAN) card.