In recent months, investing in the real estate sector in India has become an extremely lucrative proposition for NRIs, thanks mainly to the favorable currency rates due to the falling of rupee. While buying property does not require the NRIs to attain any special permissions, it is mandatory for them to get the property registered so that the property is legally transferred to their name. The NRIs should gain an in-depth understanding of how to register property in India in India and the associated process. Relying blindly on third-party service providers in the field can complicate things and lead the NRIs into making wrong decisions.
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An Overview Of Property Registration In India For NRIs
The registration of any property or land in India is still governed by the Registration Act of 1908. The act was implemented to ensure the proper and accurate maintenance of information related to all immovable properties in India. As per the provisions of this act, any land or property in India can be registered by the residents of the country as well as non-resident Indians. In addition, any person of Indian origin, who might have held an Indian passport sometime and whose parents and grandparents were Indian citizens, are also allowed to register a property in India under this Act. The Act also makes it mandatory to get the property registered within four months of the date of execution.
Step By Step Process For How to register property in India
As mentioned before, the process of registering a property in India is not as complicated as it is often made to be. In fact, the NRIs do not even need to be physically present in India for the completion of the process. They can draw up a Power of Attorney in favor of a person in India they trust to honestly complete the transaction. They should attest this Power of Attorney at the Indian Embassy nearest to them before mailing it to the concerned person, who can then execute the documents on their behalf. The various steps for registration of property are discussed in brief as follows.
Verification Of The Title Of Property
In case the NRI’s intend to purchase a freehold land or property, the current owners will have to produce the relevant documents verifying their authentic ownership of the property. In the case of properties being purchased from third parties,the process may vary slightly as it would require verification of ownership from the original titleholder to current ones.
Estimating The Value Of The Property
Depending on the location and type of property an accurate estimation of the value of the property according to current market trends needs to be done. This estimation is essential for calculating the stamp duty to be paid for property registration.
Preparing The Stamp Papers
The NRIsor their authorized representatives need to purchase non-judicial stamp papers according to the estimated value of the property and the stamp duty thus calculated. The stamp papers can be purchased online or from a licensed stamp vendor.
Preparing the Sale Deed
The next step involves preparing the sale deed, a task generally performed by an attorney on behalf of the NRIs buying the property. The precise contents of the sale deed vary according to the exact nature of the property being purchased.
Paying Stamp Duty and Registration Charges
Once the stamp papers have been prepared, the next step is to pay the Stamp Duty and the Registration Charges as applicable for the property to get it registered.
Obtaining The Approval Of Sub-Registrar
The NRIs or their representatives would then be required to visit the office of the sub-registrar in the city where the property is to be registered.They need to take along two witnesses carrying valid ID proofsand the sale deed to get it registered.
Submission Of Required Documents
The NRIs might be required to submit several other documents along with the sales deed. The list of these documents can be obtained from the sub-registrar office and generally include copies of valid ID cards, No Objection Certificate (NOC), etc.
Collect Documents Of Registration
The registration process is completed once all the documents have been verified and then the registration documents can be collected by the NRIs or their representatives.
The awareness of the above details can help in simplifying the property registration process even for NRIs seeking real estate investment opportunities in India.
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