The Reserve Bank of India (RBI) has simplified norms for Non-Resident Indians (NRIs) to invest in the Indian real estate sector. The process of selling a property in India by an NRI is almost the same way as any other Indian citizen but with a little more of documentation required. For instance, if an NRI wants to sell villas with all amenities available in Hyderabad, then he/she should go through all the paperwork and submit the documents.
Here are the important documents that an NRI requires to sell a property:
An NRI should hold a passport as an identity proof of the person who is involved in this transaction. It is not necessary for a person to hold an Indian passport. This even applies for Overseas Citizen of India (OCI) and a Person of Indian Origin (PIO).
It is important to show the address proof of India as well as abroad. An NRI should submit their ration card, telephone or electricity bills, life insurance policy statements, etc. as their proof. The same set of papers is also required as the proof of residence abroad.
If an NRI owns a property in India, then s/he should have a PAN (Permanent Account Number) card. It is required while selling the property in India for applying tax exemption certificate. PAN numbers are given out to NRIs with a foreign communication address to select countries.
An NRI owning a property in India and earning money from it by renting it out must be responsible for paying taxes. In that case, tax returns for the whole property-ownership period should also be kept ready. It is important to carry documents of property tax receipts over the years.
An allotment letter from the builder or any relevant authority of the property which states that the property is owned legally by the owner. This is one of the most important documents a seller should have.
Approved Building Plan & Occupation Certificate
Approved building plan will act as an evidence that the property is built under government authorities’ permission. Also, occupation certificate is a proof that the property has been occupied and is also given out by the builder or the building society.
As a primary proof of ownership of the property, an NRI must have sale deed which is one of the crucial legal document. It is an agreement executed by an NRI while purchasing an under-construction property in India.
Another important legal document is an encumbrance certificate which is necessary to assure the buyer that the land or the property has no dues to any legal authority.
These are some of the most important document an NRI should produce while selling his/her property in India. If anyone of the documents is missing, then s/he can consult a lawyer and get a certificate that legally proves the ownership of the property.