Before acquiring, investing, transferring or gifting a property one should have the right answers for all the right questions to avoid Property Disputes. Having the knowledge about all the rules and regulations and understanding them can help the process much easy.
Some of the Questions one must have answers for as to evade Property Disputes are as follows:
Q1. Who can purchase immovable property in India?
| Permission | Purchased by | |||
|
NRI |
PIO |
Foreign National of Non-Indian Origin | ||
| Resident in India | Non-Resident | |||
| With prior permission from RBI (Reserve Bank of India) |
– |
–
|
Residents of Iran, Nepal, Pakistan,Bangladesh, China, Sri Lanka,Afghanistan, and Bhutan can procure assets other than Agriculture/Plantation Property/Farm House | Property other than Agriculture/ Plantation Property/ Farm House |
| Without prior permission from RBI | Property other than Agriculture/ Plantation Property/Farm House
|
Property other than Agriculture/ Plantation Property/Farm House
|
Property other than Agriculture/Plantation property/Farm House are subject to approvals and fulfilling the requirement if any, prescribed by any other authorities.
Note – other than the residents of countries mentioned in above column.
|
On contract not beyond 5 years
|
Q2. Who can acquire immovable property by way of Gift in India?
Immovable Property can be acquired by way of gift either from:-
- a person resident in India or
- an NRI or
- a PIO
| Permission | Acquired By | ||
| NRI | PIO | Foreign National of Non-Indian Origin | |
| Without prior permission
|
Residential/ Commercial Property other than Agriculture/Plantation Property/ Farm House
|
Residential/ Commercial Property other than Agriculture/Plantation Property/ Farm House
|
Foreign National of Non-Indian origin resident outside
India cannot acquire any immovable property in India as a gift.
|
Q3. From whom can a non-resident person acquire immovable property by way of Gift?
- A Resident Indian
- A person resident outside India (i.e. NRI or PIO)
Q4. From whom can a non-resident person inherit immovable property?
A person resident outside India (i.e. NRI or PIO or foreign national of non-Indian origin) can inherit immovable property from
- a person resident in India
- a person resident outside India
However, the person from whom the property is inherited, if a non-resident, should have acquired the same in accordance with the foreign exchange law in force or FEMA regulations, applicable at the time of acquisition of the property.
Q5. Can and to whom an NRI/ PIO/Foreign National sell his residential/commercial property?
| Permission | Sale by NRI to | Sale by PIO to | Sale by foreign National Non-Indian origin to |
| Including citizens of Pakistan or Bangladesh or Sri Lanka or China
Afghanistan or Iran or Nepal or Bhutan. |
|||
| With Prior permission from RBI
|
–
|
PIO |
Person Resident in
India NRI PIO
|
| Without prior permission
|
Person Resident in India, NRI, PIO
|
Person Resident in India, NRI
|
– |
Q6. Can and to whom a non-resident owning/holding an agricultural land/a plantation property/a farm house in India sell the said property?
| Permission | Sale by NRI to | Sale by PIO to | Sale by foreign National Non-Indian origin to |
| With Prior permission from RBI
|
–
|
– |
Foreign national of non-Indian origin resident outside India would need prior approval of the Reserve Bank to sell agricultural land/plantation property/ farm house in India.
|
| Without prior permission
|
Person Resident in India
|
Person Resident in India
|
– |
Q7. Can a non-resident gift his residential/commercial property and an agricultural land/a plantation property/a farm house in India?
| Permission | Gift by NRI to | Gift by PIO to |
Gift by foreign National Non-Indian origin to |
||
| With Prior permission from RBI
|
–
|
– |
Foreign national of non-Indian origin resident outside India would need prior approval of the Reserve Bank to sell agricultural land/plantation property/ farm house in India.
|
||
| Without prior permission
|
Commercial/ Residential | Agricultural/ Plantation/ Farm House | Commercial/ Residential | Agricultural/ Plantation/ Farm House |
– |
| Person Resident in India, NRI, PIO | Person Resident of India | Person Resident in India, NRI, PIO | Person Resident of India | ||