Since your parents are US citizens holding US passports, with your father also having an OCI card and your mother not yet holding one, they can still sell property in India provided they comply with applicable property and foreign exchange regulations. The law does not make an OCI card strictly mandatory for a foreign citizen to sell immovable property they already own in India, except that certain categories of property such as agricultural land, plantation property or farmhouses have restrictions for foreign nationals. OCI status, however, streamlines the process and documentary requirements, especially for proving eligibility to hold and transfer property and for repatriating sale proceeds overseas.
Both parents already having PAN cards is important since PAN is required for execution of the sale deed and for tax deduction at source on the sale consideration. A US passport is valid proof of identity for the transaction; an Indian passport is not required if they are foreign citizens. Your father’s OCI card will make his execution of documents straightforward. For your mother, who does not have an OCI card, she can still execute the sale, but she may be required by the registrar and the buyer’s side to provide additional documentation to satisfy KYC norms and compliance with the Foreign Exchange Management Act (FEMA). Where the sellers are abroad, they can either come to India to sign the sale deed before the sub‑registrar or they can execute a specific registered Power of Attorney in favour of a trusted person in India to act for them. The attorney does not have to be an Indian passport holder, but it is usually more convenient if the attorney is an Indian resident. The Power of Attorney must be specific to the property and to the act of sale, executed before a notary or Indian consulate abroad, and registered in India before it can be used.
To complete the sale, they will need valid passports, PAN cards, the original property title documents, a no‑encumbrance certificate, and the registered sale deed prepared for execution. If sale proceeds are to be repatriated abroad, they must comply with RBI rules on remittance, which may require proof of inheritance or prior ownership before becoming foreign citizens, and may have limits on the quantum that can be remitted in a financial year.
If your mother applies for and obtains an OCI card before the sale, it would avoid possible registrar‑level objections and ease repatriation later. In the meantime, the transaction is still possible with careful attention to FEMA compliance and local registration requirements, and with a properly executed and registered Power of Attorney if she does not travel to India for signing.