In our last segment we discussed the purpose of an NRO account in relation to NRI, OCI property – real estate. Below, we discuss Agreement of Sale – NRI OCI.
Evidently, it can be said with some confidence that the scope and process involved in repurposing or selling your property, real-estate, immovable assets in India may require a customized course of action.
With this understanding, we continue into other factors of NRI, OCI Foreign Citizen property sale in India. Specifically, the Agreement of Sale – NRI OCI Real Estate.
As per general know-how, a property sold involves an understanding between the parties involved. Referring to the Seller and the Buyer relationship. What is an Agreement of Sale? An Agreement in which a seller and buyer mutually accept a set of terms in order to complete the process of the sale. The act of a sale implies a mutual benefit by way of the act of selling-buying.
Before we provide further insight into Agreement Of Sale, what would help your sale process happen in a more effective manner in India? Some general considerations are listed below.
Subsequently, if you have property in India what are some key aspects that may benefit you in the actual process of sale of your NRI OCI property. Parts of these are mandatory for selling NRI OCI property in India.
Let’s consider some of these;
- Legal documents and paperwork related to the property, such as any Power of Attorney
- Title Deed, proving history and ownership of the property
- Previous sale deed also known as property transfer deed
- Previous Agreement of Sale
- Property value at present, size and scope of property
- Ownership of shares in the property ie sole or multi
- Your Permanent Account Number card
These are just a few examples that provide stronger footwork to the process of your property sale as an NRI OCI in India. Although, where you do not have certain documents or information (which is a common circumstance amongst non Indian nationals), certainly you can still seek initial advice on the prospects of your property in India as some information can be obtained using due process from the relevant authorities.
What is an Agreement of Sale – NRI OCI
Specifically, an Agreement of Sale is a document that contains legally binding information in relation to the sale of a property – real estate between a seller and buyer. The document is a type of terms and conditions and acts as a mutual agreement between seller and buyer. It is commonly used in countries around the world.
It is an important document in a sale transaction however it is different from a “Sale Deed.”
Contents of Agreement of Sale
An Agreement of Sale will contain some of the following;
- Full details of the property, with all necessary particulars.
- Date of sale
- Full details of the Seller
- Full details of the Buyer
- Selling price of the property
- Date of full payment including any payment plan, ie; 60/40
- Contact details of both parties and any representatives
- Jurisdiction of legal scope
- It can be registered with the sub-registrar of the jurisdiction (Indian Registration Act, 1908)
Agreement of Sale & Sale Deed
In addition, an Agreement of Sale forms an integral part of the basis of a Sale Deed. The Sale Deed is another legal document which allows transfer of ownership of property on sale to another party. Also, known as transfer of legal title of property from one person to another.
Why is this relevant to your real estate transaction in India as an NRI OCI?
Foremost, it is necessary for you or your representative to ensure that important documents, information and factors of a similar nature are not overlooked. By doing so you can deter a tremendous amount of avoidable complications.
Who Provides Agreement of Sale – NRI OCI
As a seller it would be the seller that would ensure all details and considerations are met for their property in India. You would take the guidance and engagement of a Legal Representative/Advocate or Legal Firm to act on your behalf in achieving your real estate transaction in India.
Further, it is the legal representative ie; advocate, that drafts – Agreement of Sale, as it is legally binding for all parties involved. Where you engage a firm to represent your property sale, inheritance etcetera in India, it would be the advocate(s) assigned to you who would draft such a document.
Power of Attorney To Sell Property
Lastly, as an NRI, OCI with a busy schedule abroad and perhaps limitations on know-how, you can consider providing a Power of Attorney to a trusted individual in India in relation to your property. By doing so you can progress your property related matters from abroad. We have a number of Clients who have adopted this route, you can find out more here – Power of Attorney Sell Indian Property.
Frequently Asked Questions
NRI/ PIO may sell agricultural land /plantation property/farm house to a person resident in India who is a citizen of India.
(b) Foreign national of non-Indian origin resident outside India would need prior approval of Reserve Bank to sell agricultural land/plantation property/ farm house in India
A person resident outside India (i.e. NRI or PIO or foreign national of non Indian origin) can inherit immovable property from
(a) a person resident in India. (b) a person resident outside India. However, the person from whom the property is inherited should have acquired the same in accordance with the foreign exchange regulations applicable at that point of time.
From the NRO account, NRI/PIO may repatriate up to USD one million per financial year (April-March), which would also include the sale proceeds of immovable property.
- Transfer of property in India
- Indian Property disputes
- Sell property in India
- Power of Attorney Service
- NRI OCI PAN Card
We can also assist with the following NRI Services in London:
- Illegal occupation of property in India
- Family Settlements and partition of NRI Indian property
- Ancestral real estate and inheritance advisory under Indian law
- NRI Property Transfer
- Possession of NRI Property
- Recovery of NRI money under Indian Law
- NRI Succession Certificate in India
- Injunction against alienation of NRI property in India
- Developer Claims under the Consumer Protection Act in India
- NRI property disputes
- Visas to India
- Indian Power of Attorney
- NRI PAN Card
- Overseas Citizenship of India (OCI)
- Inter-Country Adoption
- Divorce proceedings under Indian Law for parties settled abroad