1. I am planning to buy a house from a developer. What are the different aspects about the property I should check before buying?

     i.     Check if the builder has the authority to sell.
     ii.    Find out if the building plan has been sanctioned or not.
     iii.   Ensure that the builder has obtained the necessary approval from the civic authorities.
     iv.   Check the completion and occupation certificates.

2. What are the documents one should look for while buying freehold Property?

You have to look for

     i.     The Registered Sale Deed through which you have got the title of the property.
     ii.    The Agreement to Sell
     iii.    Copy of the approved plan of construction
     iv.    The Title Search Report.

3. What should a purchaser keep in mind while purchasing a residential flat?

     i.     Locality – Proximity to workplace, educational institutions, hospitals, shopping areas, entertainment centers, transportation, pollution levels.
     ii.    Car parking space
     iii.   Reputation of the builder or seller
     iv.   Sufficient water and electric supply, other utilities
     v.    Cost components: Price, Stamp duty & Registration charges, transfer fees, maintenance charges, any other payments.
     vi.   Appreciation of the property for resale and rental.
     vii.  Any other distinguishing features or advantages of the property.

4. Should I inspect the property before buying it?

Yes. It is important to inspect the property, probably this is a lifetime investment you will ever make. You should know all the details of the property and need for any major repairs / modifications before you buy. You can crosscheck the commitment made by builder and actual implementation. A close inspection points out the positive aspects of the property, as well as the maintenance that will be necessary to keep it in good shape. After the inspection, you will have a much clearer understanding of the property you are about to purchase.
     i.     Plumbing systems, drainage, water faucets and sanitary fittings.
     ii.    Electrical systems, circuit breakers, wires, capacity of the electric meter, functioning of light fittings.
     iii.   Roof, walls, ceilings, floors, paint work.
     iv.   Foundation, basement , latches and locks.
     v.    Structural stability of the building.

5. Checklist for buying residential or commercial property.

     i.     Identify the property you wish to purchase
     ii.    Crosscheck of current market rates of property in the vicinity and last known transactions, current market trends.
     iii.    Formulate commercial terms.
     iv.    Distinguish between negotiable and fixed terms and conditions of the contract, eg. Price, Payment Schedule, Time of Completion etc
     v.     Avail of services of Propmart for legal opinion, valuation or property related matters.
     vi.    Check for clear titles of the property. Ask for photocopies of the all deeds or title related to the property to be purchased. Examine the deeds to establish the ownership of the property by seller, preferably through an advocate. Ascertain the survey number, village and registration district of the property as these details are required for registration of the sale. Previous encumbrances and loans, if any on the property must be cleared before completion of purchase of the property.
     vii.    Finalise commercial terms of purchase of the property. Ascertain transfer fees, stamp duty and registration charges to be paid on purchase of the property.
     viii.   Ascertain additional costs for the property i.e Property Tax, Water and Electricity charges, Society charges, Maintenance charges.

6. What are the tax benefits on a home loan?

The principal repayment you make on your home loan is eligible for income deduction under Section 80C. The principal is the actual amount you borrow from the home loan company and does not include the interest payments. Interest payments are also exempt from Income Tax upto a maximum of Rs. 1.50 lakhs per annum.

7. What are the Statutory clearances to be checked before buying a property?

     i.     Approval from the Municipal Authorities
     ii.    Clearance from the Fire Department in case of High rise buildings beyond height of 18 mtrs
     iii.    NOC from Airport Authority of India in case of High rise buildings beyond height of 18 mtrs
     iv.    Provision for Water Supply
     v.     Provision for Electricity

8. Do NRIs need permissions to buy property in India?

As an NRI, you need no permissions to buy property in India. You can also rent out the property and repatriate your rental proceeds, subject to payment of taxes.

Please remember that an NRI who is an Indian Citizen can sell his /her immovable property (other than agricultural or plantation property or farmhouse) to another NRI. However, the transaction has to be routed through India only. In other words, the buyer has to invest in India by way of remittance from abroad through normal banking channels or by debit to his account maintained with an authorized dealer. The sale proceeds of the property must be credited to your bank accounts maintained with an authorized dealer in India.

9. Are there any procedures for NRIs to buy property in India?

The Reserve Bank of India has granted a blanket permission to NRIs to purchase property in India for their residential and commercial purposes. There is also no limit on the number of investments or the quantity of investments that can be made in real estate. The immovable property can be purchased by inward remittances from any place outside India or through funds maintained in NRI accounts in the banks within the country.

All NRI investments in real estate or immovable properties are considered as transactions that get regulated under the FEMA (Foreign Exchange Management Act). It stipulates that before making a purchase a specified form called the IPI 7 needs to be filed with the central office of the RBI along with the title deed or any other certified copy of the document proving that the NRI has executed an agreement to purchase the property within the country. The form has to be filed within 90 days of the purchase of property and has to be accompanied with a bank certificate stating the consideration paid for the purchase. Permissions are generally granted without undue delays if all the relevant papers are submitted.
                   
10. Are there any restrictions for NRIs to sell their property?

NRIs desiring to sell property within India have a lock in period of three years. That is, NRIs under the FEMA regulation are allowed to sell property only after three years from the date of acquisition of the property or from the date of payment of the final instalment, whichever is later.

11. Are there any restrictions to repatriation of realty returns or sale proceeds?

It is easier to bring money into the country. Transferring out of India involves many procedures, which is a constant disappointment for the NRI community. FEMA says no matter what the proceeds of the sale may be, the amount for repatriation should not exceed the amount paid for acquisition of the immovable property in foreign exchange received through the normal banking channels or out of funds held in foreign currency. Non-Resident Accounts. The repatriation of sale proceeds is restricted to only two properties. NRIs are also restricted from repatriating returns from real estate developments in the form of dividends.