NRI’s like to invest in our country, as it is a good option for them to invest as well as they have emotional bonding with this land. Some of them invest online or search for properties online and hence there are chances of getting into a fraud. Before investing, one should take proper precautions. Precaution is better than cure and this logic applies best when investing in land.
There are laws to protect the investor but still, precautions are the best to be done by NRI’s. One must check if the land has the clear title before one decides to purchase it. One must study the documents of title to ensure that the owner has proper ownership of the land. The documents of the title should be checked carefully as any shortfall may lead to a defective title. Check the original title deeds as well as land records and the records of the Sub-Registrar. Check the records of the society where the property is in a society. Also issuing a public notice in newspapers calling for claims in respect of the property.
The RBI’s regulations are also easy as well; one does not have to take any prior permission from the authorities. The rules for land transaction fall under the Foreign Exchange Management Act (FEMA). NRI own purchase both residential as well as commercial properties in India, there is no restriction on the purchase of the property.
The FEMA rules are for NRI that informs that one can sell residential or commercial property bought or inherited by anyone one want. The benefits NRI are very similar to the tax benefits of a resident Indian it is just that they should take proper precautions. And hence NRI’s also like to invest in India. But the only thing is NRI’s need to take more precautions while investing in land.