Property Search and Purchase by NRIs

Property Search and Purchase by NRIs

Many non-resident Indians purchase property in India. While searching and buying real estate in India is a wise decision, the last thing non-resident want on their hands is a legal dispute concerning asset in India. Courts in India are pretty slow, and cases can drag on for tens of years. NRI’s who search and purchase asset in India should be extra careful when signing contracts and giving deposits. Seeking the help of property management lawyers to verify documentation is wise and judicious. The problem with real estate purchase in India is, the verification of assets being acquired. While India is gradually moving towards computerizing property records, this facility is not yet available. Most documents need to be validated manually, and such searches are often time-consuming. Therefore seeking the help of property management lawyers becomes imperative. When buying land, here are some of the things that non-resident real estate purchasers must consider:

• Ownership document checks
• Getting an 'Encumbrance Certificate.'
• A 'Release Certificate’ Land ownership record check must be done.

Only the legitimate owner can sell their asset, ensuring that you are dealing with the legal owner, is the number one factor while buying assets. The ownership records of the possession for at least past 30 years must be checked through the list of all transactions connected with the assets, during this period.

Search and verification of the ownership should be done at the appropriate registration office.

The seller may have pledged the possession to a bank to get a loan. The purpose of a no encumbrance certificate is to find out whether the assets being purchased hold mortgage/debt on it. The document as per property management lawyers will exhibit all the transactions registered relating to a distinct asset for a specified period.

How to get no encumbrance certificate

These documents can be obtained from the sub registrar's office, where the deed for the land is registered. The method includes:-

• Submitting an application to the sub registrar's office, under whose jurisdiction the property is located to have the certificate.
• Giving details of the asset, such as correct survey number, etc. for which the license is required. You should get this information from the salesman.
• Providing a Residence proof.
• The appropriate fee. It is based on the number of years one wish to get the document for however at 30 years is usually suggested.

The instrument is allotted by the Sub-Registrar and will help in finding data about the ownership such as:

• Documents recorded regarding the ownership.
• The parties to the real estate record.
• Nature of charges generated if any amounts secured or transacted regarding the asset.
• License information registered details and documents identifying numbers etc.

Though the instrument is an important document while purchasing real estate in India, there are some limitations stated by property management lawyers, on the information that these certificates provide.

Limitations of No Encumbrance Certificates:-

• These certificates are granted for a specific period, and the fee is asked accordingly.
• It does not cover any period before or later the time specified.
• Any encumbrance, earlier or later than the dates for which the document is given, would not be known. This is the reason information should be asked for a longer period.

Release Certificate for a property.

In the event, if an asset was vouched by the seller in the past, even though the loans are paid, ask the seller to produce a release certificate. It is an instrument issued by the bank that provided the loan, confirming that all loan payments are clear and there are no outstanding dues associated with the ownership.