A promising development of any country depends on its citizens and authorities that run its government. Since the past few years, the Indian government has been taking substantial steps to get rid of the parasites such as corruption, which were slowly destroying the country’s base and face. One of the major issues that the government is currently focusing on is corruption in Real Estate.
The most prevalent problems in real estate that the people face are illegal possession, fake deals, delayed transfer of assets and funds. These are even more prevalent among NRIs.
The NRIs face such issues when they either invest in real estate in India or when they sell their property in India.
When investing in Property in India
The primary objective of NRIs for investing in real estate in India is to earn maximum returns or security. Unfortunately, this goes down-hill when they have to face challenges such as delayed or non-delivery of property, fake deals or fraudulent builders; incurring massive financial losses.
Some of the issues that investors face are:
- Issues in the transfer of title of the property
- Poor quality of the delivered projects
- Treachery by the seller regarding – showing and selling different properties or not handing over the property at all or submitting fake documents.
- Purchased land falling under village survey or city survey.
If the area falls under village part and is an agricultural land, it is a huge problem for the NRI because as per the rules of the Indian government, NRIs cannot invest in Farmhouses, Agricultural Land, and Plantation Property.
- If the area comes under city part, the NRIs are allowed to invest in residential or commercial property.
- It may happen that at the time of investment the builder does not ask for the stamp duty and registration but later on the NRI may face problems because of the absence of such relevant documents regarding these.
- Issues due to the lack of all or some of the following terms in the property agreement:
- date of delivery
- date of possession
- the contract amounts
- regular maintenance fees
- Purchased building non-compliant with the state laws and bye-laws.
- Lack of detailed drawings of structural details, electrical fittings, plumbing, drainage and water supply can lead to several problems in the future.
- Improper or insufficient or forged signature on the agreement.
Even a small negligence can lead to a lot many troublesome circumstances. Though it is challenging to take care of every little nuance, it is crucial to do so, and one should not hesitate from taking adequate help whenever needed.