Legal Factors NRIs Should Keep In Mind While Doing Real Estate Investments


Legal Factors NRIs Should Keep In Mind While Doing Real Estate Investments

According to the Foreign Exchange Management Act (FEMA), 1999, an NRI is a person resident outside India who is either a citizen of India or a person of Indian origin (PIO).

Mandatory Documents:

NRIs should complete KYC norms and submit copy of passport with relevant pages having name, photo, DOB, address and copy of PAN. Overseas address is mandatory be it permanent or correspondence address.



NRI is eligible to open, maintain different types of accounts with an Authorized Dealer (bank authorized to deal in foreign exchange) in India without the permission from the Reserve Bank.

NRIs should maintain NRO/NRE account for transactions in INR. Approval from the Reserve Bank of India is not required to open such an account.  Payments for investments in real estate must be made only through the NRO/NRE accounts and not through foreign currency or travelers’ cheques.



NRI can acquire any immovable property in India, but cannot buy agricultural land /farm house plantation property, as  purchase and/or gift from an Indian resident or from any other NRI.


Documents of Title:

Documents of Title are such under which the NRI will acquire his title to the property including the earlier deeds, taxes and revenue records, land records, no dues certificate and title certificate from a lawyer. The NRI should seek the advice of a Chartered Accountant and a lawyer so as to avoid any legal complication.


Financial Assistance

NRI can also avail a housing loan in Rupees from an Authorised Dealer (Bank/ Financial Institution).


Documents to check carefully:

The NRI should carefully and diligently check the following documents while doing any real estate investment in India. It will surely keep him/her in a safe place and help avoid any legal complication in the long run.

  • Sale Deed
  • Approved Building Plan
  • Power of Attorney
  • Completion Certificate
  • Occupancy Certificate
  • Encumbrance Certificate
  • Paid Taxes /bills Receipts
  • Conversion Certificate


Real Estate Investments have been made easy in India. All that is needed is being careful and thorough check of all documents is a must.

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