Are you an NRI thinking of selling property in India? Here’s a quick checklist of documents you need to have before you advertise your property for sale.
Any NRI willing to sell property in India, should hold a valid passport, though not necessarily an Indian passport. It will serve as the identity proof of the person involved in the transaction. Even for an Overseas Citizen of India (OCI) and a Person of Indian Origin (PIO), the passport serves the same purpose.
If an NRI has been holding a property for a certain period and earning money from it (by renting it out, etc), the transaction becomes taxable. In that case, tax returns for the whole property-ownership period should also be kept ready.
Latest Property Tax Receipt
If an NRI is holding a property for a period of time and has been earning money from it in the form of rental or lease or mortgage, the transaction becomes taxable. In which case, the latest tax receipt should be presented to the broker/buyer.
Expert Tip: Selling of property within a span of three years will attract Capital Gains-tax. Hence it is advisable to postpone selling of property so quickly as it would cut into your profits from the sale.
When selling a property, an NRI has to present documents in support of his address in India, as well as abroad. The relevant documents may include a ration card, telephone or electricity bills, life insurance policy statements, etc.
Sale deed with clear title to the property
Please remember that the broker or the buyer will cross check your ownership rights with the original title deed (also called Mother deed) that you are expected to own either in original or a certified/attested copy, the land records of the Sub-Registrar and the records of the society where your property is located. Make sure document tracing the ownership of the property establishes a very clear sequence of transfers leading to your ownership.
Allotment letter and other documents from the society
You’ll need a letter of allotment from a society, a builder or any relevant authority that validates the property is held by you. Also, the society has to give a no objection certificate that states you have no outstanding payments to be made. Sometimes a copy of membership of the society is also important for selling a property.
Approved building plan and occupation certificate
You will require a copy of an approved building plan for selling a property. However, an occupation certificate is also needed as it is a proof that the apartment has been occupied. It is given by the society.
One of the most important documents is encumbrance certificate as it assures the buyer that the land or the property has no dues to any legal authority. This holds good for land, apartment or house.
Note: If you are produce any of the above documents, you may procure a lawyer certificate that establishes the ownership of the property. In such case, a lawyer carries out a title search and produces a report on the property. Although this certificate is also admissible for a sale, usually an original document is imperative to get a sale done quickly.
Also, Vroomble is here to assist you for selling your property in India while you’re abroad. Visit www.vroomble.com & get the service you deserve in hassle free way!