Icon

Guidelines for NRI’s Buying/Selling Property in Goa

As a NRI/PIO, buying and selling property in Goa can be a long and bumpy ride, in the absence of clear guidelines and legal assistance.

NRI’s/PIO’s desirous of Purchasing, Selling or Renting property in India, can plan, prepare and execute their property transactions without undue risk and delays by fulfilling basic requirements which are specific to Goa:

Guidelines for Sale of Property

The property law in Goa requires that a NRI/PIO desirous of selling his property in Goa must fulfil the following:

  1.  Must possess a valid ‘OCI/PIO’ card duly issued by appropriate authority.
  2.  Property should have been purchased within the FEMA provisions prevailing at the time.
  3.  Under Goa’s ‘Civil Code’ both spouses have equal share of the property and as such both must sign any sale deed or agreement of sale for it to be legal.
  4. Should be holding the Original ‘Agreement of Sale’ or ‘Sale Deed’. If the property is mortgaged and the papers are held by the bank, the buyer and seller should be willing to enter into a MOU (Memorandum of Understanding) before the sale deed can be executed.
  5.  A ‘Nil Encumbrance Certificate’ must be obtained from the concerned Sub-registrar’s office, by presenting the original ‘Agreement of sale or Sale deed’.
  6.  Have in your possession the Share Certificate and Allotment letter issued by the society (If the property is part of a coop. housing society)
  7.  Obtain a No Objection Letter issued by the society. (If the property is part of a coop. housing society)
  8.  Copy of the Cooperative Housing Society’s Registration Certificate. (If the property is part of a coop. housing society)
  9.  The Electricity Meter and House Tax should be in the name of the seller.
  10.  Certificate of total payment made and Possession Letter from builder or previous owner.
  11.  Copy of last Electricity bill and House tax payment receipt.

Additionally the seller needs to provide copy of the following documents if requested by the buyer.

  1.  Title documents showing ownership history for the last 25 years.
  2.  Development agreement between landowners and builders
  3.  survey index and survey plan of the landed property
  4.  Land conversion sanad / settlement zone certificate
  5.  Town planning / PDA approval
  6.  All approved Plans of construction, construction licence and occupancy certificate

If the property is ‘mortgaged’ to the bank/finance company the requisite bank formalities including MOU (Memorandum of Understanding) between buyer and seller must be completed before the sale can be completed.

Guidelines for Buying Property

NRI/PIO’s desirous of buying property in Goa must be mindful of the following:

  1.  Must possess a valid OCI/PIO card issued by the concerned authority.
  2.  Must adhere to FEMA (Foreign Exchange Management Act) rules prevalent at the time.
  3.  Engage an experienced local lawyer to scrutinise and verify title documents
  4.  Ensure there is Nil Encumbrance on the property
  5.  If the property is inherited it must have a probated will
  6.  All the NOC’s (No objection Certificates) are in order
  7.  Property / house tax is fully paid till date
  8.  In the case of land it must not be designated as ‘Agricultural Land’
  9.  Close scrutiny of construction plan, municipal permissions, payment plan, penalty clauses, violation of set-backs etc is highly recommended.
  10.  In the case of apartment/house, title documents or copies right from the first owner are required.
  11.  Investigate any material/construction defects in the property before purchase.
  12.  Execute an agreement of sale or sale deed upon payment of property price and govt. duties.
  13.  Take possession of the property as per the agreement of sale or sale deed.

In the case of buyer availing a bank loan or seller and/or buyer appointing a Power of Attorney, additional documents, procedures are required. Contact us for more details and assistance.

Additional Costs and Hidden Costs

Typically there are added costs over and above the property price that needs to be considered when budgeting for resale apartments/houses, such as:

  • Stamp duty
  • Registration Fee
  • Legal fee
  • Brokerage Fee
  • Society transfer fee (If the apartment is part of a coop. housing society)
  • 3rd Party consent fee (where the conveyance deed is not signed)

For apartments/houses under construction there are hidden costs that may not be apparent at the time of booking the flat. Some of the cost type listed below which are over and above the base price (sqM cost) will help you to determine the gross value of the property. Ascertain these costs with the builder and negotiate the total price before agreeing to purchase the property.

  • External development charges
  • Infrastructure development charges
  • Car parking cost
  • Club membership charge
  • One time maintenance fee
  • Electricity and water connection charge

Renting/Sub-letting Property in Goa

NRI’s/PIO’s having property in Goa can safely rent/sub-let their property by fulfilling certain basic requirements.

  1.  Ensure your property consultant/broker/agent adopts a sound screening process in selecting reliable tenants for your property.
  2.  The property must be ‘licensed’ to the licensee on the basis of a ‘Leave & License agreement’ drawn up by a lawyer in Goa who is well versed in property law.
  3.  Make an application to the society before sub-letting your property (if part of a cooperative housing society)
  4.  Ensure the ‘Leave & License agreement’ is duly notarised/attested, at the notary’s office in the area.
  5.  If a Power of Attorney has not been appointed by the ‘Licensor’ (house owner) in Goa, the ‘leave and license agreement’ must be signed and attested by the NRI/PIO in their country of residence.
  6.  Submit a copy of the agreement to the society and register the same at the local police station.
  7.  The society’s rules and regulations as annexure, must for part of the agreement.

Like Us On Facebook

Follow Us on Google Plus