When NRIs look to buy residential property in India

1. Regulatory & Financial Foundations

1. FEMA Compliance
   • NRIs (and PIOs) may purchase any residential or commercial property in India, but must comply with India’s Foreign Exchange Management Act (FEMA).
   • Investment is routed through approved banking channels using NRE (Non-Resident External) or NRO (Non-Resident Ordinary) accounts.
2. Payment & Repatriation Rules
   • Initial remittance: Funds for the purchase (100% of the sale consideration) must come from the NRE/NRO account.
   • Repatriation: Up to USD 1 million per financial year (including sale proceeds) can be repatriated, subject to conditions (e.g., holding period of three years).
3. Power of Attorney (PoA)
   • Since physical presence in India is challenging, most NRIs execute a PoA with a trusted relative, friend or professional to oversee paperwork, registrations and closings on their behalf.

2. Major Considerations & Filtering Criteria
   
   

NRIs will typically score projects on these dimensions—often using a simple “Must-Have / Nice-to-Have” matrix to quickly eliminate options that fail on fundamental criteria (e.g., title clearance or builder trustworthiness).

3. Step-by-Step Acquisition Process

1. Research & Shortlisting
   • Compile an initial list (10–15) of projects via portals, expos and developer outreach.
   • Apply a quick “kill filter” (title check, RERA registration, builder reputation).
   • Narrow list to ~3–5 projects matching location, budget and theme requirements.
2. Virtual & Physical Due Diligence
   • Virtual: 3D walkthroughs, high-res renderings, drone videos.
   • Legal: Engage a local advocate to verify title, approvals and encumbrances.
   • Site Visit: If feasible, plan a short trip or send a PoA agent for an on-site inspection.
3. Negotiation & Payment Plan
   • Negotiate preferential payment milestones, corner-unit premiums, or early-bird discounts.
   • Finalize agreement to sale; pay initial booking amount via NRE/NRO.
4. Power of Attorney & Documentation
   • Execute PoA in the host country (attested by Indian consulate).
   • Submit PoA and KYC documents (passport, overseas address proof) to the developer and bank.
5. Registration & Handover
   • Complete stamp duty and registration formalities (often handled by PoA).
   • Deposit subsequent payment installments per project milestones.
   • Handover and possession; set up utility connections and hand over keys.
6. Post-Possession Compliance
   • Ensure TDS deduction on any rental income and file Indian tax returns (if earning rent).
   • Register the property with local municipal body and maintain regular payments (taxes, maintenance).

4. Major Search Modes & Channels