While most NRI’s and foreign nationals of Indian origin own property in India through ancestry and self-acquired assets by the previous generations.Many times, they are met with confusion about how to proceed with sale, purchase, transfer along with other legal hurdles that they may face including taxation and transfer of money back to their country to residence.
In our legal experience, we have come across numerous cases involving vast amounts of legal troubles that involve breach of trust by known people that the foreign national/ NRI trusted at some point for taking care of their properties in their absence. Delving further, it is only natural for foreign nationals to keep a connection with their roots, as in most cases the immediate family is abroad, in their absence local villagers, distant relatives, caretakers make the most reliable connection with their ancestry. Over a passage of time, a trusting relationship is built and as a result certain documents are signed which have led to many legal disputes for foreign nationals. For many, it has caused more emotional pain than financial as the aggrieved party is ultimately forced to engage competent legal assistance to help their cause.
But, the question remains, why is there reliance on local agents, village acquaintances, distant relatives and so on, why are the land records/ paperwork not verified before any transaction? As most of the people while living abroad engage top legal help to maneuver through legalities abroad, similarly, it is beyond essential to do the same in India, it is pertinent to engage qualified legal professionals in India, the same as anywhere else in the world.
Key Legal Issues Often Bypassed by Local Agents
The mere ownership and transfer of property are not the only confusing elements of sale/purchase/retention of properties by foreign nationals. There are other key elements to be discussed which are usually bypassed by unqualified agents.
These include:
- Complex Laws
- Remote Transactions
- Taxation Laws
- Repatriation Solutions
- Power of Attorney created in a safe, correct and legal way
- Registration of documents
- Possession related relief
- Builder related issues
- Timely resolution to unforeseen issues including fraud
- Family disputes
- Segregation of ancestral property
The resolution to the above stated issues can be reached only through a structured legal approach, due diligence and an effective legal counsel. There are multiple layers to the sale/purchase/retention of ancestral and self-acquired property which includes transparency and communication, coupled with power of attorney, RERA compliance, Tax planning along with regular property inspection and competent mediation and arbitration.