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Q1.
Do non-resident Indian nationals require permission
of Reserve Bank to acquire residential / commercial property
in India?
Ans. No permission is required by
non-resident Indian nationals to acquire immovable Property in
India.
Q2. Are foreign
nationals of Indian origin allowed to purchase immovable
property in India?
Ans. Yes, foreign nationals of Indian
origin, whether resident in India or abroad, have been granted
general permission to purchase immovable property in India
Q3. What should be the
method of payment for purchasing residential immovable
property in India by foreign nationals of Indian origin under
the general permission?
Ans. The purchase consideration should
be met either out of funds from NRE/FCNR accounts maintained
with banks in India or out of inward remittances in foreign
exchange through normal banking channels.
Q4. In what can an NRI
finance a flat? Top
Ans. The purchase of the flats can be
financed from fresh remittance through the normal banking
channels or by payment from original non-resident account or
from Non-resident (External) Accounts. When the flat is under
construction, it may be possible to get an installment facilities
from the builder. Loan may also be available in India for
purchase of flats, for example from HDFC, ANZ Grindlays Bank,
Citibank etc. Non-resident Indians who are citizens of India
(Indian Passport holders) are eligible for housing finance for
the acquisition of an immovable property or construction of a
new house, or a flat for their occupation or for their family
in India.
Q5. For Non-resident
Indians staying abroad, can the property be purchased through
an agent or through a Power of Attorney?
Ans. Yes, property can be purchased by
an agent of through a power of attorney for a NRI staying
abroad. This can be done through their relatives and/or by
executing the Power of Attorney in their favor. These
formalities can also be completed through some known person
who can be given the Power of Attorney for this purpose. Power
of Attorney should be executed on the stamp paper before the
proper authorities in foreign countries. Power of Attorney
cannot be drafted on the stamp paper bought in India.
Top
Q6. Are there any formalities to be
completed by foreign nationals of Indian origin for purchasing
residential immovable property in India?
Ans. They are required to file a
declaration in form IPI 7 with the Central Office of the
Reserve Bank of India (RBI) at Bombay within a period of 90
days from the date of purchase of immovable property.
Q7. Can such
residential property be given on rent if not required for
immediate residential use?
Ans. Yes, such a property can be given
out on rent if it is not required for immediate residential
use.
Q8. Can the rental
income from such property be remitted outside India?
Ans. No, such an income cannot be
remitted abroad. It would have to be credited to the ordinary
non-resident rupee account of the owner of the property.
Top
Q9. Can the sale
proceeds of such a property be remitted out of India?
Ans. Yes, In respect of immovable
properties purchased on or after 26th May 1993 repatriation of
sale proceeds up to the consideration amount remitted in
foreign exchange for the acquisition of property will be
permitted. This would be possible provided the sale takes
place after, · Three years from the date of final purchase
deed or· Three years from the date of payment of final installment
of consideration amount whichever
is later.
Q10. Why there is no brokerage from lessee?
Ans.
There will be no brokerage from lessee because we are
claiming brokerage from lessor and maintaining this
property. Presently lessor has one brokerage and lessee has
another, hence brokerage is paid by both parties to their
respective brokers. In this case there is no need of any
broker for lessee.
Prospective lessee's have to pay Rs. 2,000/- as deposit, out
of which Rs. 1,000/- will be refunded. Rs. 1,000/- would be
retained by the company as service charges for showing the
various properties. This is to make sure that only serious
people come to us and do not waste time.
Q10. Why there is no brokerage from buyer?
We are not charging any brokerage from buyer
because of the simple reason that because of buyer deal is
happening and we get commission from the seller.
This model is currently in
operation in US and Europe.
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