Buyer’s Guide – Legal Information
A foreign national who is not an NRI cannot buy any immovable property in India. It is illegal for foreign nationals to own property in India.It is also illegal to buy property on a tourist visa. Moreover property cannot be purchased jointly in the name of one eligible person with one non-eligible person.A foreign national of Indian origin is “ any person who or either of whose parents or any of whose grand-parents was born in India as defined in the Government of India Act, 1935 ” or any person who held an Indian passport at any given time. There is no limit in the amount and/or number of properties that can be bought.
To purchase property, it is important for the buyer to hire a real estate attorney to protect his/her interests during the transaction. Once the property has been chosen, and a price has been negotiated with the seller, the attorney draws up an Agreement of Sale. Upon signing, the buyer normally pays a deposit as per the payment plan of the company or seller. The lawyer then conducts due diligence and the buyer obtains the title documents from the seller. The title should be checked to have encumbrances. The conveyance documents must be stamped at the Stamp Duty Office before signing. After this, the remaining balance is settled, and the deed is registered at the Sub-Registrar of Assurance Government duties are paid.