Purchasing a house is governed by various legislation, affected by numerous factors and requires knowledge of a few basic concepts. It is definitely not rocket science and not even any cake walk. Precisely, if you think to buy a house in India, you need to firstly decide on some factors that affect, the you’re expected to know the various legislation governing the same, along with these two, you also need to be aware about certain terms and procedures that need to be followed to ensure safety and authenticity of transaction. The blog discusses all of them in brief, it is advised that you go through all points to gain a better understanding of the same.
A) Factors to keep in mind before buying property in India
- Location: For any property, location lays the foundation of the decision making. Before zeroing in on any property, make sure the location suits your needs, ensure safety and check for availability of basic necessities and other provisions for better standard of living.
- Agent: It might take a little more time to get your deal done but look for a good agent who is trustworthy and aware about stuff that actually matters. Any fraud committed can go a long way in spoiling your balance so make sure you select the right agent.
- Check for clearances: Before you buy a house in India, there are certain clearances that need to be obtained and that you must be sure of. Ensure that all the clearances are in place and that there is no issue pending.
B) Certain restrictions on buying property in India
- In India, any foreign national or any person not of Indian origin is prohibited from buying immovable property in India. If they wish to do so, they can only do it after satisfying the conditions of being an Indian Resident which involves stay in the country for a period of 83 consecutive days. Any foreign national is also not allowed to jointly hold any immovable property in India.
- The system for lease is different. Non-Indian people can have residential property on lease for a period of 5 years but then to have it in their name they’ll have to satisfy residency conditions in the country.
- Foreign companies are free to establish their branches in India but then this property should be strictly used for commercial purposes and not for residential purposes.
C) Procedure to follow
- Hire a real estate attorney: It is necessary that yo hire an attorney to protect your interests if you plan to buy a house in India.
- Agreement of Sale: After selection of property, an agreement of sale is drawn up.
- Signing of conveyance documents: The attorney keeps a check on documents and conveyance documents must be stamped at stamp duty office.
- Deed is registered at the Sub-Registrar of Assurance and Government duties are paid.
- The whole process of registering property requires five procedures, which can be completed in around 44 days.
This is precisely the procedure you should follow, laws you should keep in mind and guidelines you must try to adhere to. After all, to buy a house in India is a big decision and m=any mistake made can bring in losses for a great span of time.