How do I transfer property ownership in India as an NRI?

Answered by

A Agarwalla & Co.

Published At July 2, 2024

Answer

Transferring property ownership in India as an NRI involves several legal steps and documentation to ensure the process complies with Indian laws. Here’s a concise guide to help you navigate through it:

Power of Attorney (PoA): Since NRIs may not be physically present to execute the transfer,  can be appointed to represent them. This person will handle all necessary formalities on the NRI’s behalf.

Compliance with FEMA Regulations: The Foreign Exchange Management Act (FEMA) governs property transactions for NRIs. Ensure that the property type (residential or commercial) is permissible under FEMA guidelines. Note that NRIs are generally not allowed to purchase agricultural land, plantation property or farmhouses​.

Required Documentation:

  • Identity Proof: Passport and PAN card.
  • Proof of Address: Utility bills.
  • Title Deed: Original property documents.
  • Encumbrance Certificate: To prove the property is free from any legal dues.
  • Sale Deed or Gift Deed: Depending on whether the transfer is by sale or gift​.

Payment of Taxes and Fees: NRIs must pay applicable stamp duty, registration fees and capital gains tax if the property is being sold. These costs vary by state and are a percentage of the property’s market value.

Registration: The final step is registering the transfer deed with the local sub-registrar’s office, which makes the transfer legally valid and enforceable. This involves submitting all the necessary documents and paying the required fees​.

Engaging a real estate attorney in India is crucial to navigate the legal complexities and ensure all formalities are correctly followed. They can provide tailored advice and manage the entire process efficiently​.