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Wednesday, August 17, 2011

NRI planning to buy property in India without coming personally? Read this!

nri buying property in india
NRIs can buy property without being present
Are you an NRI planning to buy a property in India but cannot travel to India personally to sign the deal? Worry not, there are procedures that allow you to register the property and close the entire property buying transaction without being physically present! Read on and it gets real simple.

1) Choose the property well. Ensure that you are fully aware of what you are buying. Not being physically present is not a hindrance to closing and registering your property deal but choosing a wrong property based on third party advice could be a disaster. Ensure that you are striking the right deal.

2) Being an NRI, you can have the entire deal executed and the property registered on your behalf by anyone you choose. Make sure you choose a reliable, close person because you are trusting that person with a lot. (S)he could be a friend/ family member/ colleague. All you need to give that chosen person is a Power of Attorney to transact on your behalf.

3) Execute a Special Power of Attorney in favor of your chosen person. This person will be signing the agreements and other documents on your behalf. The Power of attorney has to be signed in front of the consulate officer of the Indian Embassy of the city and country where you are located. Affixing a photograph and your left thumb impression with your signature is essential. You can then send this POA to India, where it has to be adjudicated. After the adjudication process, the POA is ready for use in India for buying any property. Remember to make a transaction specific Power of Attorney which becomes redundant after that particular transaction is complete. A general power of attorney is a very open ended document and you should avoid empowering someone to that level unless it is absolutely necessary and you can trust the chosen person completely!

4) For a truck load of Power of Attorney formats, click here and see what suits you.

5) Payments for purchase of the property have to be made from your NRE account which, reflects the remmitance made by you from abroad. Keep the entire transaction above board. :)

6) And yes, ask the POA holder to make a file of all the documents that you receive during the entire transaction cycle from the builder, the financial institution if any and the registrar and courier it to you. When you can, send out an email or two to the developer to keep your rapport up and be informed of any issues or glitches in the transaction/ paperwork.

We are sure that your 'remote controlled' property buying operation is going to be a breeze. Do leave a comment if you have a specific query or request. We would be happy to help!

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  3. Is the concept of power of attorney still valid? I heard you have to be physically present in India if you want to buy or sell property?

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