Sale of Immovable Property:
Sale of immovable property is explained under the Transfer of Property Act 1882 as a transfer of ownership by any person for a price paid or promised or partly paid and partly promised.
Essentials of Sale:
a) There must be a seller and a buyer. And the seller and buyer must be competent to contract.
b) There must be immovable property.
c) There must be a transfer of ownership to the buyer by the seller.
d) Price is one of the main parts of the sale of immovable property.
Overview of Acquisition and Transfer of Immovable Property:
Any person who resides outside India and he is a citizen of India can acquire immovable property by way of purchase in India. But he cannot buy agricultural land or a farm house or plantation property.
NRI can transfer immovable property to:-
a) Any person who resides outside India and also a citizen of India.
b) Any person or individual who is originally from India but resides outside India.
Inheritance of immovable property by NRI in India:
An NRI can inherit the immovable property in India. An NRI can enjoy or is entitled to immovable property from any individual who is a resident of India or any individual who is a resident outside India.
Some Methods of Transfer of immovable property in India:
1. Transfer by Sale:- An NRI can sell his or her property to any individual who is resident in India or to an NRI. An NRI can sell agricultural land or farmhouse or plantation property to any individual who resides in India and also a citizen of India.
2. Transfer by gift:- An NRI can gift his or her commercial or residential property to any person who is resident in India or an NRI or PIO.
3. Transfer through mortgage:- NRI can mortgage his or her property to any authorised dealer or housing finance institution in India- without the approval of Reserve Bank and also to a party who is living abroad – with prior approval of Reserve Bank.
The process of selling a property by an NRI:
1. An NRI should hire a brokerage company to find out the valuation of the property.
2. An NRI must carry out all the paperwork related to the sale of immovable property.
3. An NRI must understand the tax liabilities.
4. The tax is deducted by the NRI at the time of making the payment.
5. The amount is received in an FCNR or NRE/NRO account.
Necessary Documents required by NRI for selling a property:
2. PAN Card
3. Tax Returns
4. Address Proof
5. Sale Deed
6. Documents from the Society
7. Encumbrance Certificate
It can be understood from the above explanation that NRI can sell or acquire immovable properties in India with certain limitations. The conditions to acquire or sell or transfer property to any individual in India are mentioned above. So, it is better to consult with any legal advisor before acquiring or selling or transferring any immovable property in India.