If you are an NRI and looking about Ownership rights of Property in India for NRI, then you are at the right place. We have compiled ways in which you can invest and own a property in India if you are an NRI. Please read on.
Joint Ownership/Power of attorney (POA)
Like any other Indian resident, an NRI can also buy a property in joint ownership. If the property is owned by more than one person, it is termed as joint ownership. Any co-owner can transfer his own share in the property (mentioned in a legal deed) to any other person.
With joint ownership comes certain rights and obligations. A co-owner has the following rights:
The property to be purchased by an NRI can either be purchased in a single name or jointly with any other NRI. It may be noted that an Indian resident or a person who is not allowed to invest in the property in India cannot be made as a joint owner in the property.
FEMA does not specify any rule about the acquisition of immovable property jointly with residents of India. However, as per the general laws, an NRI can purchase properties with close relatives in India.
Power of Attorney (POA)
A power of attorney (PoA) is a legal document issued by a property owner nominating another person to act on his behalf in his absence. For NRIs, selling a property is considered a difficult task due to their unavailability.
Buying or even selling a property required a number of activities including documentation, drafting an agreement to sell, executing a sale deed and property registration. The POA is considered as the most effective mechanism for a property owner who lives/ works out of the country. In such situations, an NRI is always been advised to issue a power of attorney (POA) to a close relative residing in India to tackle all legal formalities related to the property. The POA must be signed by the NRI in the presence of a legal official.
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Vishesh Rai Buffett is an Indian entrepreneur and technology evangelist by heart. He is the Founder and chief executive officer of PROPERTYYY.com, the only Real Estate Consultancy Chain in India.