Real Estate in Inda & Goa

Foreign citizens of Non-Indian origin (whether resident in India or not) and foreign companies including trusts, societies and associations incorporated/ registered abroad will be permitted by Reserve Bank, on application, to acquire immovable property in India, provided the following conditions are satisfied :-

1) The property to be purchased is for residential use only.

2) The consideration for purchase of the property is met out of foreign exchange remitted from abroad in any convertible currency through normal banking channels.

3) Income accruing by way of rent from the property purchased, or the sale proceeds of such property/income arising out of investment of such sale proceeds at any future date shall be credited only to the Ordinary Non-resident Rupee (NRO) account of the non-resident purchaser.

Before buying an immovable property, one should consult a lawyer for all details of agreement and registration, the 'No-encumbrance certificate' etc. and seek the assistance of a registered valuer to ensure price quoted is correct market value.

In Goa in India, which is an ever increasingly popular place for those in search of a place in the sun, there are incredibly strict rules in place relating to the sale of freehold property to foreigners and those who have been guided around the legalities by less than scrupulous representatives of the real estate profession are starting to panic as a new crackdown is being discussed that could see the investment properties of those foreigners who have not upheld the letter of the law being confiscated.

Up to 3,000 Britons own property in Goa and around 5,000 units of property have been sold to foreign buyers since the Foreign Exchange Management Act of 1999 came into force. The Act covers the legalities relating to the purchase, sale and resale of real estate in Goa to non-resident individuals and foreigners and it clearly states that non-residents cannot buy real estate in Goa until they have been resident in Goa for 182 days in any one given financial year.

When buying property in India in Goa the advice is use the services of only those estate agents who can present to you their certificates of Service Tax Registration and Company Registration, use an independent lawyer who specialises in real estate law and can tell you whether and when you are eligible to buy.