NRI - Selling Inherited Property in India

A lot NRI’s are now investing on properties in India but selling inherited property could be confusing and tough, especially if you are unaware of the property rules and regulations in detail. Before selling the inherited property the NRI has to follow few steps listed bellow.

1: Transfer title of inherited property                     
The first thing you must do is to transfer the title of the property to your name. You can do this by a process called 'mutation of revenue records.' You would need either a copy of the Will or in absence of a Will a Succession Certificate issued by the local court.

 

Step 2: Get documents in order
Here's a list of documents you need to put together  in order to sell the property.:

  1. Original purchase agreement
    This is the title document of the property.

 

  1. Original share certificate in case of residential unit in a co-operative society.
    A share certificate is issued by the co-operative housing society to each member.
  2. No objection certificate from the society
    The certificate confirms that the seller has no default/outstanding payments to be made to the Society as of date. Usually this is received once the buyer is finalized as the society gives an NOC stating that it does not have any problem in the owner selling the property to the buyer.
  3. Copy of approved plan and occupation certificate issued by the concerned authority such as a municipal corporation.
  4. PAN Number  - A Permanent Account Number (PAN) is a must for all big ticket transactions in India. An NRI must get a PAN for making the sale of property as after sale of property, it will be required to apply for Tax Exemption Certificate under section 197. In the absence of a PAN, the NRI can also furnish Form 60 at registrar office.

Step 3: Identify your preferred sales method
For NRI’s it is always advisable to take help of real estate broker. Unless you have friends or close relatives in India who you can trust, it might not make sense to venture out on your own.

Quick Search