Immovable property refers to any immovable object or any item of property which can’t be removed from its place without altering or destroying the object, any property that is affixed to the ground for example, land or a building.
Acquiring Immovable Property
Acquisition of any type of immovable property by any person who is not residing in India but is of Indian origin (an NRI) or any person of Indian origin, can be an excellent form of investment as the real estate market, unlike in other places of the world, is constantly on the rise. NRIs or PIOs can only acquire commercial/residential properties and not any type of agricultural land, farm, house or plantation properties. Property can be acquired through the means of a purchase with the permission of the RBI, as an inheritance or as any gift of a piece of property. Agricultural land, farm houses or plantation property cannot be given as a gift to an NRI or POI.
Transferring Immovable Property
Transferring any immovable property can be done by a variety of methods. Transfer by sale is one of the most popular methods, where the property can be sold to any person who is residing in India with due permission from the RBI, as a gift to any resident of India and through any mortgage to a dealer or a finance institution after receiving prior approval of the RBI. If you hold any agricultural land by inheritance, you can sell it to a resident of India who is also a citizen only with prior approval of the RBI.
Why should you invest in immovable property?
Immovable property is one of the best sources of investment that you can make. It is a form of security and can be used as a nest for a rainy day since it can be sold or transferred. Since the value of real estate in India increases with time, investing in immovable property if you are a Non-residential Indian or a Person of Indian Origin or even a Indian resident can be an extremely sound investment that gives you excellent returns on your investment.
Documents required for purchasing immovable property
Buying a piece of land or any property is one of the most challenging and important decisions that you will make in your life. While there are a lot of legal notices and paperwork involved in the process, if you are able to grasp the nuances, you can reap the benefits. You will need a very clear title and paperwork that includes but is not limited to the parent deed of any piece of property which is necessary in order to trace the origins, the deeds of conveyance, records of mutation, the record of the rights of the property holder, the Survey and the Village map, the land index survey report, a Tippani, avoid certificate of tenancy and of acquisition, a valid conversion order and paid receipt of the same, Receipts for tax returns, Khatha, a copy of the approved plan for layout, the certificate order of release of site and the encumbrance certificate.
Thus, immovable property can be an asset that will increase value over the years and give great returns. With proper documentation, you can ensure that you make a solid investment that is bound to give you great returns.