🏠 Property in India

Buying property in India? Don't sign anything until these 22 are done.

Reserve Bank of India (RBI) rules, NRE/NRO funding, RERA (Real Estate Regulatory Authority) due diligence, Power of Attorney for remote registration, stamp duty, TDS (Tax Deducted at Source), post-purchase US reporting (FBAR/FATCA). The full NRI playbook. Tick as you go — saves locally.

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1 Decide + scout 3-6 months out

Confirm Reserve Bank of India (RBI) rules — NRIs can buy residential and commercial property freely. Cannot buy agricultural land, plantation, or farmhouses

Set total budget = property + 8-10% buffer for stamp duty + registration + brokerage + legal

Plan funding source — NRE (Non-Resident External) inward remittance, NRO (Non-Resident Ordinary) from rental income, FCNR FD funds, or Indian-bank home loan

NRE / NRO accounts →

Scout cities and localities on home trips — never finalise from photos and video walk-throughs alone

2 Find + due diligence 2-4 months out

Verify the property is RERA-registered at rera.[state].gov.in — under-construction projects are mandatory; resale is exempt but cross-check builder reputation

Hire a property lawyer — typical fee Rs 25,000-1L. Don't reuse the seller's lawyer or builder's lawyer

Get a title certificate with 30+ year title chain — covers all sale deeds, gift deeds, partition deeds, court orders

Get an Encumbrance Certificate (EC) from the sub-registrar — proves no liens, mortgages, or pending litigation

For ready-possession — verify Occupancy Certificate (OC) + Completion Certificate (CC) issued. Without OC the property cannot be legally lived in

Verify approved building plan, Khata extract, property tax payments up to date

3 Money + legal setup 1-2 months out

Move funding to your NRE / NRO / FCNR account — overseas wires don't transact in INR directly with the seller

FX Compare →

If applying for an NRI home loan — typical 70-80% loan-to-value, 8.5-9.5% interest, processing in 2-3 weeks. SBI, HDFC, ICICI all have NRI desks

If unable to be present at registration — set up a notarised Power of Attorney (POA), attested at the Indian consulate in your country. Specific POA (not General) is preferred

Adjudicate the POA — pay stamp duty in India (typically Rs 500-1,000) within 3 months of consular attestation, else it expires

4 Sign + register closing

Sign the sale deed in person or via POA. Get all pages initialled and signed by both parties + 2 witnesses

Pay stamp duty — 5-7% of agreement value, varies by state (Mumbai 6%, Bangalore 5%, Delhi 6%)

Pay registration fee — typically 1% of agreement value, capped in some states

Take possession after registration. Get keys, Khata transfer initiated, society NOC (No Objection Certificate)

5 Post-purchase compliance first 90 days

Deduct 1% TDS (Tax Deducted at Source) from each instalment if property > Rs 50 lakh — file Form 26QB within 30 days of payment

If buying from an NRI seller — Buyer must deduct TDS at source under Section 195 (post-July 2024: 12.5% LTCG / 20% STCG on the sale value)

Full NRI property tax stack →

Update Khata transfer + property tax rolls in your name at the municipal corporation

For US persons — report on FBAR (FinCEN 114) if total foreign financial accounts > $10K, and FATCA Form 8938 if foreign financial assets > $50K (single) / $100K (joint)

FATCA / FBAR guide →

Update your will to include the new Indian property + name nominees with the housing society

If renting out — open NRO account for rental income, deduct TDS at source per Section 195

Buying property in India? Don't sign anything until these 22 are done.

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