Checklist for buying property in India

NRIs and PIOs who are contemplating on buying a residential property in India should first and foremost determine the purpose of such a purchase. Determine whether you will eventually want to live there? or if you wish to have a place in India for short term visits that you and your friends can use. Is this for a parent? or is this strictly for investment purposes. Your answers to questions like these should help you get a clear picture of what you really intend to accomplish and help you decide where and what to buy. Either way, location is an important factor when it comes to buying real estate any where in the world.

Here are a few tips when buying property in India:

1. Land should have a clear title, check with the office of the Sub Registrar 2. Insist on a completion certificate and a map with the sale deed 3. If purchasing land. Establish how the land was acquired by the seller 4. Before buying vacant land a copy of plan approval from the local authorities should be obtained. The seller should be able to provide this. It is up to you to verify these documents 5. Zoning was not a problem several years back. However things have changed now. Don’t buy residential property for commercial use unless the plans are approved. It is not uncommon for the municipal authorities to demolish structures after they have been built and sometimes years after they have been built 6. Be very careful when buying property from sellers who have a power of attorney status to sell the property. Personally I would NOT buy such property. Ensure that title is clear and the owner is the one actually selling the property and there are no legal disputes for ownership of the property 7. Get the Agreement of Sale registered as per Registration Act 1908 8. When buying re-sale properties, don't rush to close deal if price is too low as per market standard. Make proper inquires. Ensure that the property is build legally and abides by all building codes and laws of the municipality and state. 9. When buying a new property from a builder it is important that the builders reputation be checked. Previous developments, Whether delivery is on time etc. are things that can tell you a lot about a builder in India. Even your bank in India should be able to provide information about new housing complexes. If banks are hesitant in approving loans for a project, this should be a red flag. 10. When buying from builders, get everything is writing. Read the contract carefully and delete what you don't like. Several builders publish great brochures but many times don't provide all those amenities that they mention initially. Some time they even increase prices after you buy as they may have some clause in the paperwork that you signed that allows them to do so. Check and recheck sale agreement before buying. 11. Maintenance charges is a big problem these days in India. Some builders will take a one time maintenance charge and say the monthly maintenance will be paid from the interest of the deposited money. Turns out at a later date that they still demand more monthly fees for maintenance. 12. Don't pay cash for any property purchase. Make payments only by legal banking channels. This will help you avoid problems and even repatriate your money when you decide to sell your property in India.

Disclaimer: Information provided is for general knowledge only and should not be deemed to be professional advice. For professional advice kindly consult a professional accountant, immigration advisor or the Indian consulate. Rules and regulations do change from time to time. Please note that in case of any variation between what has been stated on this website and the relevant Act, Rules, Regulations, Policy Statements etc. the latter shall prevail. © Copyright 2006 Nriinformation.com