The Real estate segment is full of NRIs who want to buy their dream home back here in India and invest in our country, to have a secure life when they return. This is also one of the biggest reasons for the real estate boom in Chennai.
If you are a Non-Resident Indian (NRI) and want to buy property in Chennai, here are some legal questions that will be on top of your mind. Well, we are here to answer.
With the exception of agricultural land, plantations and farmhouses, Non Resident Indians are eligible to purchase residential or commercial property in India, without any permission from the RBI. However, if you are person of Indian origin and do not hold an Indian passport, you do need an RBI sanction for acquiring any kind of immovable property in the country.
How can I make the payment?
Payment towards purchase of the property can be made out of inward remittances in foreign exchange through banks, or from the individual’s NRE/ FCNR (B)/ NRO accounts maintained in India.
Can the properties (residential/commercial) be given on rent if not required for immediate use?
Yes. Reserve Bank has granted general permission for letting out any immovable property in India. The rental income or proceeds of any investment of such income are eligible for repatriation
Can NRIs obtain loans for acquisition of house/flat for residential purpose from authorized dealers/financial institutions providing housing finance?
Reserve Bank has granted general permission to certain financial institutions providing housing finance and authorized dealers to grant housing loans to non-resident Indian nationals for acquisition of a house/flat for self-occupation subject to certain conditions. The purpose of the loan, margin money and the quantum of loan will be at par with those applicable to housing loans to residents. Repayment of loan should be made within a period not exceeding 15 years out of inward remittance or out of funds held in the investor’s NRE/FCNR/NRO accounts.
The loan amount shall not exceed 85% of the cost of the dwelling unit.
Own contribution, which is the cost of dwelling unit financed less the loan amount, can be met from direct remittances from abroad only through normal banking channels, your Non-Resident (External) [NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)] account and /or Non-Resident Special Rupee account [NRSR] in India.
Repayment of the loan, comprising of the principal and interest including all the charges are to be remitted from abroad only through normal banking channels, your Non-Resident (External) [NR (E)] Account and /or Non-Resident (Ordinary) [NR (O)] account and /or Non-Resident Special Rupee account [NRSR] in India.
Can Indian companies grant loans to their NRI staff?
Reserve Bank permits Indian Firms/Companies to grant housing loans to their employees deputed abroad and holding Indian passports subject to certain conditions.
While purchasing real estate most developers demand a Power of Attorney in their favor, is there a way to avoid it?
One can choose not to grant the Power of Attorney (POA) to the developers. However this will mandate the mailing of all documents to your foreign residence and associated time delays. A good compromise is to grant the POA to the builder only for specific necessary items.
Can an NRI give a Power of Attorney to a person in India for completion of loan formalities on their behalf?
Homes, apartments, townships, luxury flats and what-not have today become part and parcel of life in Chennai. Wherever one goes, one can see new high-rise apartments being constructed, new villas coming or new townships becoming landmarks in different parts of the city. In this huge concrete jungle, how does one decide where to invest?
Once a place that was deserted, the road now wears a new look and name (Rajiv Gandhi Salai), with IT companies, commercial complexes and star hotels dotting the sides of the road. Definitely the hottest place to invest in property in Chennai right now. Good appreciation is predicted and it also gives great rental income if you are an NRI looking for investment.
2. ECR (East Coast Road), Chennai
The place known for its hotels, beach resorts and weekend parties. ECR offers a calm reprieve outside the bustle of the city, yet quite easily accessible to the centre of the city. Go for a beach-view apartment along the ECR and let the calm, beautiful home do the work in increasing your money!
3. Velachery, Chennai
Another part of the city that has grown phenomenally in the last few years. Velachery and the areas surrounding it – Madipakkam, Medavakkam and Pallikaranai – are the new hot names in the Chennai real estate scene. Exquisite apartments are available at budget rates, which will offer a definite appreciation in future.
4. Others
Some of the other up and coming areas include –
Porur
Sriperambadur – predicted to be the new face of Chennai in a few years
Thirmangalam – think of it as an ‘extended’ Anna Nagar
These are just some of the hottest real estate areas and the list does not end here. Always remember to do your research thoroughly and be doubly-sure of where your money is going before making the final decision. We at MARG Properties are always willing to help and guide you through the process of building your dream home with us!
After months of researching and physically visiting several apartment complexes you have finally decided one that suits your needs best. Great! But what next? Does your search for a great apartment end with just a good looking apartment with great facilities? No, it dosen’t stop there.
Before you actually buy the property ask the residential builder for clear title papers; commencement certificate (CC). If the builder has a CC then it means the land is free from dispute.
Clarify if he can give you the completion certificate. A completion certificate is required during registration and stamp duty process, and also in the case of a resale of the property.The completion certificate is a very important document.
Check if any well known banks have tied up with the builder as most banks tie up only with reputed builders. You can be assured that you will be safe from any kind of fraud.
Visit the model apartment and also ask for the building plan. A model apartment is important as it will give you an idea of how your flat will look. This way you can check on the quality of materials used. In some cases buyers can upgrade materials by paying a little extra in advance to the builder. Also, the internal plan of an apartment can be slightly modified on payment of an extra amount to the builder. However, the residential builder must be intimated at the very beginning itself. Please note that not all builders accomodate such requests.
Clarify if there will be additional charges apart from the sale price such as legal fees, car parking fees, stamp duty fees, etc. When you budget get a complete list of all expenses involved and accordingly allocate funds.
You will need to ask the completion date of the property and when the property will be handed over to you. Finally before you move in measure the total built up square feet of your apartment to ensure that it is the same as mentioned in your sale deed.
Save yourself the trouble and tension by choosing a highly
reputed residential builder!
Buying a property can seem overwhelming, however you can simplify the whole process by drawing a checklist of all the formalities involved, documents required, budget and of course the list of government offices you will need to visit. Prepare a comprehensive list of government office addresses with route map, telephone numbers, the names and positions of people at these offices if possible, places where you can buy stamp paper, the commission you may need to pay people in the process.
Once you have agreed on the buying price with the seller check all the original documents from the mother document to the current document. Don’t ever accept a photocopy of the original document. Insist and verify the original document. This will will help you ensure that the seller is indeed the actual owner of the property. Also, verify if there are legal heirs to the owner and if required ask for a no objection certificate from the legal heirs. This is to avoid any kind of possible legal battle over the property in future.
Physically visit the property; contact the area surveyor and measure your land. Cross check the documents in the sub registrar’s office. Thoroughly enquire if the price the seller has quoted is the market value of the property. If possible enquire with neighbours around the property you propose to buy. Ascertain the value of the plot, survey number and patta. Insist on an encumbrance certificate for the last 20 years atleast and also check if the property tax is paid up to date.
Another important point is that the plot must be approved by PANCHAYATS: CMDA / DTCP / MMDA. Clarify which category the property belongs to: RESIDENTIAL, Commercial, Non Residential, Industrial and Special zone.
The property must be free from mortgage. Once you have collected all the information hire a lawyer and get the douments verified thoroughly. Should you want to apply for a bank loan then you definitely need a patta. Banks will never sanction a loan for properties without patta.
Everything you have agreed on should be documented, verbal agreement has no value.
There is a plethora of choices when it comes to buying an apartment in Chennai. You have luxurious apartment complexes that offer you everything under one roof; then there are compact apartment buildings that are compact and easy to maintain; and there are budget apartments that comes with no additional facilities or amenities.
Whatever may be your choice there are certain points you might want to consider before investing in a property: Budget, Location, Car parking, Maintenance charges, Amenities, Apartment size, Pets, Floor choice.
On deciding to own your own property in chennai you will need to draw a rough budget including an estimate of all anticipated expenses other than the property price. Related expenses include registration charges, stamp paper charges, lawyer’s fee, taxes, club membership, etc.
You will need to choose a good location. You might want to own an apartment in the heart of the city like chennai, or you might prefer living in the peripherals to avoid dust, traffic and pollution or maybe you want a property that is close to your office or kids’ school. Your choice of the location is based on what is of utmost importance in making life convenient, and comfortable for you.
Affordability is another key factor. Choose a property that is affordable to you. One that will suit your family size, and meet all your requirements of a good home.
Check on the number of car parks you will be allotted. In most cases, there is a separate charge for car parks. Clarify the amount and total number of parks you will be given.
In most cases, maintenance charges are charged monthly or on a quarterly basis. In some apartment complexes it is charged as a flat rate and in some cases it is charged on the basis of a certain rate per square feet. So if your apartment is 1000 square feet and the rate charged is 10 rupees per square feet then the monthly maintenance charges will work out to Rs 1000.
Check the amenities offered such as swimming pool, health club facilities, ATM, grocery store etc. Choose an appropriate size according to your requirement: compact, large, mid size. Check if you can keep pets in your apartment block as some apartments have restrictions on keeping pets.
Choose a floor that is convenient for you. If you have aged parents you might want to choose the ground floor, if you need more privacy you might want to choose a higher floor, which will be relatively free from noise.
Lastly, check the accessibility to the closest schools, hospitals, places of worship, malls, grocery stores, police station, the travel time to the railway station and airport, etc.
Follow these simple tips and ease your tension of buying an apartment!
