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SCO 105, Unicity Plaza, Zirakpur-Chandigarh Road, Zirakpur-140603
Frequently Asked Questions (FAQ)

FAQ for NRI Customer

Everything that a Non Resident Indian (NRI) needs to know to invest in property in India

Q. Is there are any Lock in period for such investment?
Currently there is no lock in period.

Q. Who is a PIO?
A person of Indian origin means an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan) who:
i) held an Indian Passport at any time, or
ii) who or whose father or paternal grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955.

Q. Who is a NRI ?
NRI is a person resident outside India, who is either a citizen of India or a person of Indian origin. A NRI is an Indian Citizen who has migrated to another Country. For all official purpose the Government of India considers Indian National away from India for more than 182 days, in a year.

Q. What are the types of Property can a NRI/PIO purchase in India?
There are no restrictions on the numbers of Residential/Commercial Properties (other than agricultural land/farm house/plantation) that can be purchased.

Q. How should the purchase of residential immovable property be paid for by NRI/ PIO under the general permission?
The purchase consideration should be met either out of inward remittance in foreign exchange through normal banking channels, or out of funds from NRE/FCNR(B)/NRO accounts maintained with banks in India.

Q. Does a NRI/PIO, requires to have a company in India or abroad or both for purchasing of property?

Q. Can NRI/ PIO’s acquire or dispose residential property by way of gift?
Yes, NRIs and PIOs can freely acquire immovable property in India by way of gift either from
(i) person resident in India                 (ii) NRI                    (iii) PIO
However the property can only be commercial or residential.
Again NRIs and PIOs may gift residential/ commercial property to
(i) person resident in India                 (ii) NRI                    (iii) PIO
(iv) Foreign national of non Indian origin – with approval of RBI

Q. Can NRI/PIO sell their purchased property without the permission of Reserve Bank?
Yes. Reserve Bank of India has granted general permission for sale of such property to the following categories:-
” To a NRI
” To a PIO (If the seller is a PIO, then a prior approval is required from RBI)
” To a person Resident of India

Disclaimer : The purpose of this FAQ is to provide the visitors a general understanding on the various issues relating to House Property. The above FAQ been prepared on the basis of advice received and may vary from person to person, based on facts of such case. Reasonable efforts have been taken in collecting, preparing and providing quality information, but we do not warrant or guarantee the accuracy, completeness, adequacy or currency of the information. The contents of the FAQ are subject to changes / amendments made by the CBDT / Finance Ministry.

FAQ for Indian Origin Customers:

Q. What is a residential apartment?

A residential apartment is an autonomous housing unit that consists of bed rooms, living rooms, kitchen, bath rooms, etc. It occupies only a part of a building. Apartments may be owned by an owner or by rented tenants. In commonwealth countries, the term ‘flat’ is used to describe apartments.

Q. What are the various types of apartments?
Apartments can be broadly divided on the basis of size as follows:

Studio apartments / efficiency/ bed sit / bachelor or bachelorette style apartments – are the smallest size apartments, designed especially for rent purpose. Such an apartment generally consists of a large room which is the combined dining, living and bed room. Even the kitchen facility is combined in these apartments barring the bathrooms. Bachelor or efficiency style apartments are at times smaller than studio apartments.
One bed room apartments are those in which one bed room is separated from the rest of the apartment. Similarly there are two bed room sets, three bed room sets etc. Small apartments have only one entrance unlike large apartments which may have more than a single entrance.
A garden apartment has some characteristics of a town house with each apartment having its own entrance and separate apartments are not placed vertically over one another. However, a garden apartment is usually one storey and never more than two stories. Some garden apartment buildings place a one-car garage under each apartment with pedestrian entrance from a common courtyard. The grounds are landscaped compared to other modestly scaled apartment.


Typically, if a real estate agent is asked to judge the value of a piece of property, he would do so based on information of recent sales or purchases of similar properties in that area. Though this may give a fair idea of the property market value, aofficial property valuation would carry more weight. E.g. if you need to use this piece of property as a security against a loan, the bank loan approval process would be faster and smoother if the property is certified by an official valuer. Many banks now insist on valuation certificates before issuing loans using properties as security. The value thus certified may also have chances of getting a higher amount of loan sanctioned. Another benefit of official valuation is that it is a useful negotiating tool when selling the property. Such certification also becomes essential in situations where the correct value of the property has a legal bearing such as, a will statement, insurance papers, business balance sheets etc.


The price that a property can command in the open market is known as its market value. Stamp duty is based on the market value or the agreement value of the property, whichever is greater.


When a piece of property is given or leased to an individual (known as the Lessee for a stipulated period of time, by the owner of the property (known as the essor, the property is referred to as Leasehold Property. A certain amount is fixed by the Lessor to be paid as lease premium and annual lease. The land ownership rights remain with the Lessor. Transfer of property requires prior permission.


When ownership rights for a piece of property are given to the purchaser for a price that property is referred to as Freehold Property. Unlike in the case of leasehold property, no annual lease charges need to be paid and the freehold property can be registered and / or transferred in part(s)


Q. What should a buyer keep in mind while purchasing a residential apartment?
Some important points to keep in mind while buying a residential apartment are:

Locality – Proximity to workplace, educational institutions, hospitals, shopping areas, entertainment center, transportation, pollution levels. Quoted area of the flat i.e. Carpet, Built Up Area and Super Built Up Area

(i) Car parking space                            (ii) Quality of construction                 (iii) Reputation of the builder or seller
(iv) Sufficient water and electric supply and other utilities         (v) Cost components like price, stamp duty, registration charges, transfer fees, maintenance charges and other payments           (vi) Appreciation of the property for resale and rental
(vii) Other distinguishing features or advantages of the property

Q. What do you mean by Carpet Area, Built-Up Area and Super Built-Up Area?
Carpet Area is the area enclosed within the walls, actual area to lay the carpet.

Carpet Area is the total usable area enclosed within the four walls of an apartment or commercial space. It refers to the actual area over which a carpet can be laid if required by the owners. It does not include the thickness of the inner walls.

Built-Up Area is the carpet area plus the thickness of outer walls and the balcony.

Super Built – Up Area is the built up area in addition to the proportionate area of common areas such as the lobby, lifts shaft, stairs, etc. The plinth area along with a share of all common areas proportionately divided amongst all unit owners make up the Super Built-Up area. At times it may also include the common areas such, swimming pool, garden, clubhouse, etc. The term is therefore only applicable in the case of multi-dwelling units.

Q. How can knowing the Carpet Area, Built-Up Area and Super Built-Up Area of a flat help in the purchase of an apartment?
The breakup of areas is extremely essential as builders can place any space from 65% to 85% per cent of the super built area as carpet area. It would then imply that if the area is quoted as 1,000 sq ft super built up area, the carpet area could be anywhere from just 650 sq ft to 850 sq ft. If this break up is not mentioned in the agreement, demand that the vendor/ builder mention it in the sale deed.

Q. Should I inspect a property before buying it?
It is definitely important to inspect the property before purchase as probably it is one of the largest investment made by buyers. It is crucial to know all the details of the property and need for any major repairs / modifications before it is purchased. It is easy to crosscheck the commitment made by builder and actual implementation if a pre-purchase inspection has been carried out. A close inspection points out the positive and negative aspects of the property, as well as the maintenance that will be necessary to keep it in good shape.

Few important points to check while inspecting are:

Plumbing systems, drainage, water faucets and sanitary fittings.
Electrical systems, circuit breakers, wires, capacity of the electric meter and functioning of light fittings.
Roof, walls, ceilings, floors, paint work.
Foundation, basement and visible structures.
Doors and windows, latches, locks.
Structural stability of the building.

Q. What points should be included in the checklist for buying residential or commercial property?
The checklist should include the following points:

Property identification
Crosschecking current market rates of properties in the vicinity and last known transactions and current market trends
Formulation of commercial terms
Distinguishing between negotiable and fixed terms and conditions of the contract, like price, payment schedule, time of completion etc.
Availing services of Prop-mart for legal opinion, valuation or property related matters
Verifying clear titles of the property and acquiring photocopies of the all deeds of title related to the property to be purchased. Examination of the deeds to establish the ownership of the property by seller, preferably through an advocate
Ascertaining the survey number, village and registration district of the property as these details are required for registration of the sale. Previous encumbrances and loans, if any on the property must be cleared before completion of purchase of the property
Finalizing commercial terms of purchase of the property. Ascertain transfer fees, stamp duty and registration charges to be paid on purchase of the property
Ascertain outgoings to be paid for the property i.e. property tax, water and electricity charges, society charges, maintenance charges
Request vendor to obtain, if applicable, a consent, permission, sanction and a No Objection Certificate (NOC) of various authorities like society, income tax authority, Municipal Corporation, the competent authority under the Urban Land Ceiling and Regulation Act and any other authority
If a loan is required for property purchase, financial institutions must be contacted for a pre-approval letter. As many options are available for loans, Propmart can also assist in loan requirement procedures and options
Permanent Account Number (PAN) of vendor and purchaser under Income Tax laws must be ascertained
Payment of stamp duty on the formal agreement or document for transfer of the property, signing by both the Vendor and Purchaser and registration
After payment of the entire sale price, the buyer can take over legal possession of the property and s/he must check the receipt of original documents from the Vendor of the property
Ensure that property holder’s name is changed in all related records like society, electric company, Municipal Corporation, index II etc.

Q. What is a Sale Deed?
Sale Deed also known as Conveyance Deed is a document by which the seller transfers his right to the purchaser, who, in turn, acquires an absolute ownership of the property. The document is executed subsequent to the execution of the sale agreement and after compliance of various terms and conditions detailed in the sale agreement.

Q. What is a Draft Sale Deed?
A Draft Sale Deed contains full details of the parties, advance amount paid, mode of balance amount payable, receipt of the balance amount by the seller, handing over the original documents of the property, handing over the possession of the property, handing over the authorization letter to transfer power and water meters, signing of the application for transfer of ‘khata’, title of the seller of the property, indemnifying the purchaser in case of defect in the title and easement rights and is prepared by the purchaser’s advocate.

Q. What is the difference between a Khata and Title Deed?
A Khata is an account of assessment of a property for the payment of tax. The Khata does not confer ownership. However, the Title Deed is the document through which a person derives a title or ownership of the said property.

Q. What are legal aspects related to buying a property?
Before buying an apartment it is crucial to carefully examine all types of legal documents related to the building and the land. A buyer can ask for the certificates and documents cleared by the respective agencies or boards with regard to the property. Some points to be verified are as follows:

(i) Check whether the property has clear legal titles or not
(ii) Check whether the developer has the right to transfer the properties and whether he has taken transfer of property approvals from the statutory land development or planning authority or competent authority constituted under the Urban Land Ceiling and Regulation Act and the Income-Tax Act
(iii) Check if the developer has acquired approvals from the Municipal Corporation, Area Development Authorities, electricity boards, water supply and sewage boards
(iv) Scrutinize the contract and take help from legal experts before signing

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        Zirakpur-Chandigarh Road




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