NRIs’ holding non-resident external (NRE) or Non Resident Ordinary (NRO) rupee accounts in India are eligible to buy property by issuing cheques from such accounts

2) Payment for the purchase of property can be made either by way of funds remitted to India from abroad through regular banking channels or through the balance in the NRE, NRO Account.

3) you can make payment using local bank account

1. NRI is an indian citizen only and here is no restriction for NRI to buy proeprty in India.

2. Hence there is mandate that you will have to use one particular category a/c only.

3. So choose any of your a/c and buy a proeprty of your choice.

All the best.

1. NRI is permitted to purchase immovable property in India other than agricultural land or plantation property or farm house. An NRI is a person resident outside India, who is a citizen of India or is a person of Indian origin.

2. Under the exchange control law, the payment of purchase price for the residential property in India, should be made out of following channels:

(i) funds received in India through normal banking channels by way of inward remittance from any place outside India, or

(ii) funds held in any non-resident account—non-resident external (NRE), non-resident ordinary (NRO) or foreign currency non-resident (FCNR) accounts.

1. In certain cases, properties/flats are sold to NRIs only like the Rosedale complex in New Town, Kolkata. In such cases, payments by the buyers are to be made by NRIs from their NRI/NRO account only to prove that they are NRIs.

2. The NRIs are also Indians and can purchase properties/flats by paying from their local accounts.

There is no hard and fast rule that you have to buy the property only using NRI account.

You can buy the property in the local currency too.

it is always advisable to register agreement for sale for purchase of property

You can use any of the account for transaction. By getting a tax benefit it is advisable to use NRI Account. It would be advisable to registrar Sale Agreement at the respective Sub-Registrar’s office. Then it would reflect in the sub-Registrar’s records and any subsequent buyer on verification would identify the existence of a valid agreement on the property and any subsequent buyer will be able to find the existence of a valid agreement on the property.

As per the Amendment of 2013, since 2013 October 30th, all Sale Agreements related to immovable properties are compulsorily registrable.

Stamp paper used for registration is Rs500.Several Supreme Court and high court judgments have held that unregistered agreement of sale will not be recognised in a court of law.Section 49 provides that any document which is required to be registered, if not registered, shall not affect any immovable property comprised therein nor such document shall be received as evidence of any transaction affecting such property.

Is it mandatory to buy property using NRI/NRO account?

this account is necessary for remittance of foreign currency in India, you can pay either from these accounts or from local account for purchase of property. You can transfer amount from your NRI account to your local account and pay the sale proceed.

Is it legally valid to buy property using Local account?

yes, only one thing is necessary i.e. to pay sale amount by cheque or DD or online transaction if property is valued more than 2 lack. you should keep full particular because it may be required by Income tax department for matching of data.

you should prepare an agreement on a non judicial stamp paper valued rs 100 or above.

You can make an agreement but it is always better to register the same.

1. You need not enter in to an agreement for transferring money to the Vendor of the property decided to be bought by you.

2. You are required to enter in to an agreement for buying the said property wherein, inter alia, the subject of your making payment shall also be mentioned.

3. Engage a local lawyer for drafting a detailed agreement for sale and then get the same executed and registered.

4. The said agreement should be well drafted keeping the penalty clause for not registering the bsale deed within a specified period after receiving the consideration for the said property.

Better register it.