How can NRI buy property in India without visiting?

Five simplified steps to buy a property in India, without visiting or being in abroad

1. General Power of Attorney (GPA)
2. Sale Agreement
3. Home loan (skip this step if you are self-financing)
4. TDS (skip this step if your buying price is less than Rs 50 lakh)
5. Sale deed

For your better understanding, let me narrate the real example that how Mrs. Priya purchased a property in India from being in abroad.

Mrs. Priya lives in Denmark. She decided to buy a 2BHK flat in Bangalore, India. The price of the flat is Rs. 49,75,000/-

Due to work commitments, Mrs. Priya could not able to come to India to register the property so she nominated her mother to be her lawful power agent in India.

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1. General Power of Attorney (GPA)

Mrs Priya followed below steps to make the General Power of Attorney (GPA)

Step 1: Drafted the GPA in word file

Step 2: Printed the GPA draft on A4 size paper

Step 3: Mrs Priya affixed her passport-size photo on last page of GPA

Step 4: Mrs Priya signed the GPA in front of Notary public in Denmark, Two witnesses signed at last page of GPA.

Notary public attested the GPA and issued notary certificate.

Step 5: Mrs. Priya self-attested the passport copy

Step 6: Mrs Priya send the GPA and self-attested passport copy to her mother in India through courier

Step 7: Mother received the courier in India, (in 5 days from the day of dispatch in Denmark)

Step 8: Mother carried the following documents to District Registrar Office (DRO) to adjudicate the GPA

• Original GPA received from Denmark
• Mrs Priya’s self-attested passport copy
• Mother’s aadhar
• Request letter signed by mother (shared the mock below)

Step 9: DRO verified the above documents including Mrs Priya’s passport and mother’s aadhar copy. Approved for adjudication

DRO adjudicated GPA. The adjudicated GPA looks like below image:

Below is the image of request letter signed by mother

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2. Sale Agreement:

The sale agreement is the most important document in the whole chain of buying a property because even the sale deed is executed based on the terms & conditions covered under sale agreement.

We helped Mrs Priya to make sale agreement in India, we followed below steps to make sale agreement

Step 1: Drafted the sale agreement in word file

Step 2: Printed the sale agreement draft on A4 size paper

Step 3: Seller and Buyer (GPA holder) signed the sale agreement at bottom of all pages. Two witnesses signed on last page.

Step 4: We generated K2 challan worth Rs.4,975 (0.1% of buying price) to frank the sale agreement.

Step 5: We franked the sale agreement in K.R. Puram, sub-registrar office in Bangalore.

Below is the image of sale agreement:

Below is the image of K2 challan for franking sale agreement

Below image of Sale Agreement franking

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3. Home Loan:

Home loan process is triggered with the Bank. We triggered with HDFC Home Loan, Kasturba Road Branch in Bangalore.

The bank looked at the following documents:

• Income proof of Mrs.Priya
• Property marketability, (that includes seller’s sale deed & encumbrance certificate)
• Sale Agreement (shared the image above)

Mrs. Priya from abroad exchanged all the documents with bank via email and we submitted the physical copy of seller’s sale deed, encumbrance certificate, and above sale agreement to Bank. We got the loan sanctioned in 15 working days.

The bank issued the loan amount in cheque, favoring the seller’s name

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4. TDS:

The buyer is required to deduct 1% from the sale proceeds if the property value is more than Rs. 50 Lakh

Mrs Priya purchased the property at the price of Rs. 49,75,000 only, also the guidance value of this property is Rs. 45 Lakh so TDS is not applicable for Mrs. Priya.

(One needs to pay the TDS if the buying price or guidance value is more than Rs. 50 Lakh, whichever is higher

Guidance value is the minimum value for which a property can be registered. Guidance value is published by the Department of Stamps & Registration in your locality. The guidance value is also known as Government value or circle rate.)

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5. Sale Deed:

Sale Deed is a written document that transfers the ownership of the property

We followed below steps to make the sale deed registration.

Step 1: We drafted the sale deed content in word file

Step 2: Printed the sale deed draft on document paper

Step 3: Mrs Priya paid the government charges on K2 website for registering the sale deed. We guided Mrs Priya through zoom call on payment process.

Below is the image of K2 challan

Step 4: We scheduled sale deed registration on 22nd August 2022 in K.R. Pura, Sub-registrar office. Seller, buyer (GPA holder) and bank representative carried following documents to sub-registrar office.

Following are the documents carried by seller to sub-registrar office

• Original sale deed which he purchased from builder on 09–12–2011
• Encumbrance Certificate since 2011
• Khata
• Tax paid receipt (current financial year)
• Aadhaar & PAN

Following are the documents carried by Mrs. Priya’s GPA holder (Mother)

• Sale Agreement, (we shared the image above)
• Printer sale deed (To be registered)
• Adjudicated GPA (we shared the image above)
• GPA holder’s Aadhaar
• Passport and PAN copy of Mrs. Priya

Bank’s representative carried the cheque (to be issued to seller as final settlement)

Step 5: We submitted above documents to chamber officer in KR Puram sub-registrar office. Officer verified the documents and approved for registration

Step 6: The officer took the fingerprint thumb impression, webcam photo and OTP authentication of seller and buyer (GPA holder)

Step 7: Seller and buyer (GPA holder) signed all pages of sale deed. Two witnesses signed at last pages of sale deed

Step 8: Bank’s representative handed over the final settlement of cheque to seller.

The seller handed over following things to bank’s representative and Buyer (GPA holder).

• Original documents including sale deed which he registered with builder on 09–12–2011,
• Khata
• Tax paid receipt
• Property keys

The bank representative took all the title documents including seller’s sale deed, khata, EC, tax paid receipt and just registered sale deed

(GPA holder took photocopy of above title documents before handed over to bank’s representative for filing new khata transfer, name change in property tax receipt and utility bills)

Below is the image of registered sale deed:

This completes the procedure to buy a property from abroad.

Note: You just need a trusted local guide to do the groundwork in India, rest you can manage everything via email, call and Whatsapp

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In Bangalore, we provide end-to-end assistance to buy property, Our service includes

• Power of Attorney
• Sale Agreement
• Co-ordination with bank for loan sanction
• TDS & Challan payment
• Sale deed Registration
• Khata Transfer
• Property tax payment

To opt for our service, please whatsapp to + 9 1 - 9 7 4 2 4 7 9 0 2 0.

Thank you for reading…