• Buying of property from NRI

I am buying a 1 Bhk flat in Navi Mumbai from an NRI, he is based out in gulf country. The flat is in the joint name of Husband and wife. On paying of token money we came to know that, the name of his wife was different in KYC and In sale deed its different. They have given power of attorney to his brother in law (wife's brother) for selling the property few years back. 

Please let me know what precautions I should take here before going ahead with this deal .

I have asked him to get the sales deed signed at the embassy office in his country and embassy will attest the same - I want to know the exact procedure name of it. So that I can ask him to do it. I want a detailed help for this process.
Asked 2 years ago in Property Law
Religion: Hindu

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6 Answers

Why is name of wife different in KYC and on sale deed ?

 

2) wife can give POA to her brother to sell her share in property.it should be attested before Indian consulate 

 

3) husband should not execute POA in favour of brother in law as it would attract higher stamp duty 

 

4) it should be executed in favour of husband close blood relative only 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

- She can give POA to her borther for executing the sale deed on their behalf 

- The said POA should be noterized as per rule of that country , and attested from the consulate of India. 

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

You have to observe due diligence especially while the proeprty is being sold through a power of attorney deed and not directly by the owner.

In this there are two owners, hence you may have to verify if both the owners have authorized the power agent to sell the property.

You may also have to particulars/details of the owners through the copies of  their valid identity cards and compare that to the sale deed to confirm if they are the actual owners. 

The owners are NRIs hence it becomes your duty to deduct tax at source out of the sale consideration amount that has been paid.

you may also confirm to whom and how are you required to pay the sale consideration amount, because there are two owners and both are NRIs. 

They have to give a life certificate duly attested by a doctor of that country  and the same is to be attached to the sale deed to be registered to your name.

The sale deed cannot be executed in the foreign country because the non judicial stamp paper is not valid beyond Indian territories.

Also the sale deed has to be registered before the concerned registrar only and not before the embassy officials of the foreign country 

It is essential to obtain a proper legal opinion from a lawyer before buying the property

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

  1. The difference in name can be solved by adding attested copy of KYC to sale deed including both names in sale deed as alias.
  2. Obtain fresh GPA. A GPA authenticated by notary public, attested by Embassay or on official appointed by Central Government of India for the purpose is sufficient. GPA should be signed by both joint owners.
  3. Verify the original sale deed.
  4. Check any pending arrears of utilities, maintenance, property tax etc.
  5. If the flat is recently constructed, verify if it is as per sanctioned plan.
  6. Whether there OC and CC for the flat.
  7. Before purchase issue a pubic notice seeking any objections for purchase of flat.
  8. Obtain certified copies of title deeds from office of Sub-Registrar and obtain EC for last 30 years.
  9. carry out a personal inspection of property on holiday when all neighboring property owners will be available at the Coordinate dimensions, boundaries and extent of property is particulars given in title deed.

Ravi Shinde
Advocate, Hyderabad
5125 Answers
42 Consultations

Buying a property from an NRI involves some legal formalities and precautions that you should be aware of and follow. Based on the web search results that I found, here are some of the steps and tips that you should take before going ahead with this deal:


  1. Title and Ownership Verification:

  • Check the property's title deed to ensure it's under the seller's and his wife's names.
  • Confirm their identity and nationality through passports, visas, and PAN cards.
  • Ensure no property encumbrances by acquiring an encumbrance certificate.
  • Verify the property's tax status, ensuring all dues are cleared.


  • Power of Attorney (PoA) Verification:
    • Ensure the PoA given by the NRI seller to their relative is valid, registered, and comprehensive.
    • Address any name discrepancies in official documents.


  • Tax Deductions:
    • Deduct TDS from the sale amount as mandated by the Income Tax Act, 1961. Rates are 20% for long-term and 30% for short-term capital gains.
    • TDS rates can be adjusted if the seller provides a certificate indicating a different tax liability.


  • TDS Formalities:
    • Deposit the deducted TDS with the government within the stipulated time.
    • Issue a TDS certificate (Form 16A) to the seller post deposit.


  • Embassy Attestation:
    • If the seller is abroad, the sale deed should be signed and attested at the Indian Embassy in the seller's residing country. This procedure is known as "attestation of documents by diplomatic or consular officers."
    • The deed should be checked by the Sub-Registrar in India before attestation to ensure legal compliance.


  • Sale Deed Registration:
    • Register the sale deed at the local sub-registrar's office within four months of its execution.
    • Pay the required stamp duty and registration fees. Present all necessary documents, including the TDS certificate.

    In addition to these steps, it's advisable to engage a property law specialist to navigate the legal intricacies of the purchase.

    Muraleedharan R
    Advocate, Trivandrum
    386 Answers
    2 Consultations

    Dear client

    When buying a property from an NRI (Non-Resident Indian), there are several precautions you should take to ensure a smooth and legally sound transaction. Here are some steps you can consider:

     

    Verify Ownership and Title: Ensure that the property's ownership and title are clear and free from any encumbrances or disputes. You may want to hire a local lawyer or property expert to conduct a title search and verify the ownership documents.

     

    Check KYC and Sale Deed: Investigate the differences in the wife's name in the KYC and sale deed. This could be a potential issue, and you should understand the reason behind it. It's essential to ensure that the seller has the legal authority to sell the property.

     

    Power of Attorney: Since the seller has given a power of attorney to his brother-in-law for selling the property, verify the authenticity of the power of attorney document. It should be properly notarized and registered, and you should consult with a legal expert to ensure its validity.

     

    Embassy Attestation: If you want the sale deed to be signed at the embassy, this is typically referred to as "consular attestation" or "embassy attestation." The exact procedure can vary depending on the country and embassy involved. You should contact the relevant embassy or consulate to inquire about their specific requirements and procedures for attesting legal documents.

    Due Diligence: Conduct thorough due diligence on the property, including checking for any outstanding property taxes, utility bills, and other dues. Ensure that all these are cleared before the transaction.

     

    Draft a Clear Sale Agreement: Have a legally binding sale agreement that outlines all the terms and conditions of the sale, including the purchase price, payment schedule, and the responsibilities of both parties.

     

    Consider an Escrow Account: Consider using an escrow account to hold the funds until all legal requirements are met, and the property is transferred in your name.

     

     

    Anik Miu
    Advocate, Bangalore
    11014 Answers
    125 Consultations

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