Documents That NRIs Need While Selling A Property In India
The recent times have seen an interesting trend of investing in the real estate market in India amongst the NRI diaspora. With a favorable exchange rate and improved transparency, NRIs are also willing to sell their properties in India. Reasons for the sale can be anything ranging from taking citizenship in another country to earning profit.
There are many aspects that are required to be considered while selling the property but first and foremost requirement is to make sure that you have all the relevant documents.
Documents Of Identity Proof
There are many documents that can act as identity proofs; Passport and PAN cards are the most relevant ones. It should be noted that a passport need not necessarily be an Indian passport. In case an NRI does not have PAN card details, then in such exceptional cases, he can alternatively use Form 60 according to Income-tax rules.
The address of the seller in India as well as the country of their residence can be verified by bills related to that property that the NRI has paid, such as telephone bills, electricity bills or water bills. These bills act as conclusive proof that the seller has been an owner of the property.
Documents Related To Property
- Sale Deed:
The sale deed is a proof of the transfer of title from the seller to the buyer. The NRI seller needs to make sure that the property he is selling has a valid sale deed in favor of the buyer. Only then the transaction of the property will be termed as complete and legal.
- Documents From Society/ Allotment Letter
If the property in question, is located in a registered society/locality, then obtaining a NOC (no-objection certificate) regarding pending dues is important. Other documents such as approved building plans or occupation certificates are also considered. They can be accessed by approaching appropriate authorities such as TCPO (Town & Country Planning Organization). If the property is located in a co-operative society, then a ‘share certificate’ becomes an important document to hold.
- Encumbrance Certificate
The encumbrance certificate verifies that the seller is free from all legal dues and tax returns. It contains all the records of the property to date, in some cases up to 30 years. It also mentions the change of ownership of the property. An NRI seller must obtain it from the sub-registrar’s office.
- Katha Certificate/ Extract
Katha certificate is an entry record. It is recorded with the local municipal committees. It is mandatory to obtain the certificate while there is a transfer of property. It can be obtained from concerned revenue departments by paying a small fee.
- General Power Of Attorney
This document becomes mandatory only in case the previous sale/purchase was carried out by an authorized person on the owner’s behalf.
All these documents can be accessed physically by the seller, but this exercise can be time-consuming. Chances of missing some documents become high during the hustle of making a final offer on the property. NRIs can contact legal representatives, who can help them in making adequate decisions regarding the property.
Property lawyers will provide legal advice and solutions to NRIs in matters such as transferring property through a registered sale deed, identification of the seller, and establishing title to the property. They also assist in preparing and evaluating all the documents necessary to complete a transaction efficiently and correctly, negotiating, drafting and reviewing sale agreements, etc.