What are the common challenges NRIs face when buying or selling property in India and how can they be addressed?

Answered by

A Agarwalla & Co.

Published At June 19, 2024

Answer

Non-Resident Indians (NRIs) face several challenges when buying or selling property in India. Key issues include legal and regulatory complexities, property management difficulties, transparency concerns, taxation and maintenance hassles.

  • Legal and Regulatory Complexities: Navigating the legal landscape in India can be daunting due to varied rules for property ownership, especially in agricultural or restricted areas. Ensuring compliance with these regulations is crucial to avoid legal troubles. Engaging a real estate attorney India can help in understanding and adhering to these legal requirements​​.
  • Property Management: Managing properties from abroad is challenging. NRIs often need reliable local property management services for maintenance, tenant issues and repairs​.
  • Transparency Issues: Verifying property titles, land records and construction quality from a distance can be problematic. It is advisable to conduct thorough due diligence and engage reliable legal advisors to avoid falling into fraudulent deals​.
  • Taxation: NRIs are subject to Indian tax laws, including capital gains tax when selling properties. Understanding these tax implications and ensuring compliance can be intricate. Seeking professional assistance for tax planning and compliance is beneficial​​.
  • Property Maintenance: Maintaining properties, especially when vacant, can be a burden. NRIs should consider the costs associated with regular upkeep, repairs, and property taxes​​.