Q. Do non-resident Indian citizens require permission of Reserve Bank to acquire residential/commercial properly in India?
A. No.

Q. Do foreign citizens of Indian origin require permission of Reserve Bank to purchase immovable property in India for their residential use?
A. Yes. However, Reserve Bank has granted general permission to foreign citizens of Indian origin, whether resident in India or abroad, to purchase immovable property in India for their bona fide residential purpose. They are,therefore,not required to obtain separate permission of Reserve Bank.

Q. In what manner the purchase consideration for the residential immovable property should be paid by foreign citizens of Indian origin under the general permission?.
A. The purchase consideration should be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from NTE/FCNR accounts maintained with banks in India.

Q. What are the formalities required to be completed by foreign citizens of Indian origin for purchasing residential immovable property in India under the general permission.
A. They are required to file a declaration in form IPI 7 with the Central Office of Reserve Bank at Mumbai within a period of 90 days from the date of purchase of immovable property or final payment of purchase consideration alongwith a certified copy of the document evidencing the transaction and bank certificate regarding the consideration paid.

Q. Can such property be sold without the permission of Reserve Bank?
A. Yes. Reserve Bank has granted general permission for sale of such property. However, where the property is purchased by another foreign citizen of Indian origin, funds towards the purchase consideration should either be remitted to India or paid out of balances in NRE/FCNR accounts.

Q. In what manner the purchase consideration for the residential immovable property should be paid by foreign citizens of Indian origin under the general permission?.
A. The purchase consideration should be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from NTE/FCNR accounts maintained with banks in India.

Q. Can sale proceeds of such property if and when sold be remitted out of India?
A. Yes. Under the general permission granted by Reserve Bank properties other than agricultural land/farm house/plantation property can be acquired by foreign citizens of Indian origin provided the purchase consideration is met either out of inward remittances in foreign exchange through normal banking channels or out of funds from the purchasers' NRE/FCNR accounts maintained with banks in India and a declaration is submitted to the Central Office of Reserve Bank in form IPI 7 within a period of 90 days from the date of purchase of the property/final payment of purchase consideration.

Q. Can they dispose of such properties?
A. Yes.

Q. Can the properties (residential/commercial) be given on rent if not required for immediate use?
A. Yes. Reserve Bank has granted general permission for letting out of any immovable property in India. The rental income or proceeds of any investment of such income has to be credited to NRO account.

Q. Can such property be sold without the permission of Reserve Bank?
A. Yes. Reserve Bank has granted general permission for sale of such property. However, where the property is purchased by another foreign citizen of Indian origin, funds towards the purchase consideration should either be remitted to India or paid out of balances in NRE/FCNR accounts.

Q. In what manner the purchase consideration for the residential immovable property should be paid by foreign citizens of Indian origin under the general permission?.
A. The purchase consideration should be met either out of inward remittances in foreign exchange through normal banking channels or out of funds from NTE/FCNR accounts maintained with banks in India.

Q. Can sale proceeds of such property if and when sold be remitted out of India?
A. Yes. Under the general permission granted by Reserve Bank properties other than agricultural land/farm house/plantation property can be acquired by foreign citizens of Indian origin provided the purchase consideration is met either out of inward remittances in foreign exchange through normal banking channels or out of funds from the purchasers' NRE/FCNR accounts maintained with banks in India and a declaration is submitted to the Central Office of Reserve Bank in form IPI 7 within a period of 90 days from the date of purchase of the property/final payment of purchase consideration.

Q. Can they dispose of such properties?
A. Yes.

Q. Can the properties (residential/commercial) be given on rent if not required for immediate use?A. Yes. Reserve Bank has granted general permission for letting out of any immovable property in India. The rental income or proceeds of any investment of such income has to be credited to NRO account.

Q. Can sale proceeds of such property be remitted out of India?
A. Yes. Repatriation of original investment in respect of properties purchased by foreign citizens of Indian origin on or after 26th May 1993 will be allowed to be remitted up to the consideration amount originally remitted from abroad provided the property is sold after a period of three years from the date of the final purchase deed or from the date of payment of final instalment of consideration amount,whichever is later. Applications for the purpose are required to be made to the Central Office of Reserve Bank within 90 days of the sale of property in form IPI 8.

Q. Can NRIs obtain loans for acquisition of a house/flat for residential purpose from financial institutions providing housing finance?
A. Reserve Bank has granted general permission to certain financial institutions providing housing finance e.g. HDFC,LIC Housing Finance Ltd.,etc. to grant housing loans to non-resident Indian nationals for acquisition of houses/flats for self-occupation subject to certain conditions.

Q. Can authorised dealer grant loans to NRIs for acquisition of a flat/house for residential purposes?
A. Authorised dealers have been granted permission to grant loans up to non-resident Indian nationals for acquisition of house/flat for self-occupation on their return to India subject to certain conditions. Repayment of the loan should be made within a period not exceeding 15 years out of inward remittance through banking channels or out of funds held in the investments' NRE/FCNR accounts.

Q. Can Indian companies grant loans to their NRI staff?
A. Reserve Bank permits Indian firms/companies to grant housing loans to their employees deputed abroad and holding Indian passport subject to certain conditions.

Q. What are the options available for obtaining guarantors while applying for a HDFC/LIC loan?
A. One will need a guarantor for a loan mainly for collateral security. The guarantor will have to demonstrate appropriate networth to cover for the loan. Usually one can have a guarantor in any city where the loan issuer has a branch. Talk to loan issuers they will work something out for NRIs and foreign banks.

Q. While purchasing real estate most developers demand a Power of Attorney in their favor, is there a way to avoid it?
A. One can choose not to grant the Power of Attorney (POA) to the developers. However this will mandate the mailing of all documents to your foreign residence and associated time delays. A good compromise is to grant the POA to the builder only for specific necessary items.

Sanjog Pandya
India

**** Living Riviera Maya Real Estate and Azul Fives Condos
and Hotel from Riviera Maya Mexico****
SEE US IN TORONTO as part of the International Real Estate expo Oct 30 and 31st 2010,
Double Tree Hilton Airport Hotel.

Register with us, "Azul Fives Residences and Hotel", and win 1 of 5 prizes for two, for a week at Azul Fives Gourmet All Inclusive, Riviera Maya.

Here is a little info about what we invite you explore:

Beach, Caribbean Sea, Pools, Spa, Gym, Restaurants, Rental Revenue, 100% Titled Ownership.
What more could you want?
October 1st, 2010 saw the Grand opening of the most significant beach front community in Riviera Maya, The Azul Fives Hotel by Karisma, built by TM Real Estate Group .

The Fives is the sweetheart project of condos in Mexican Caribbean real estate. It's a perfect combination of Riviera Maya luxury condominium ownership and flexible turnkey investment property, offering lifestyle amenities along with managment by already thriving Riviera Maya hotel company, Karisma Hotels.

Why is it attracting so much attention for investing in Mexico, vacation home owners or retiring in Mexico?

Azul Fives will be the only hotel in all of Riviera Maya that will offer condo owners and hotel guest, 5 star hotel service in the setting and family comfort of your own deluxe condo. As an owner at Azul Fives, enjoy the flexibility to live or vacation here as long as you like, use hotel services and all its amenities. Take advantage of the optional rental program to put money in your pocket.

Amenities of the property include several pools, beach club and infinity pool, 5 restaurants and a spa and gym, a Fisher Price kids club, tennis courts, concierge.

Luxuriously furnished lock off condos and penthouses of 2 and 3 bedrooms can be purchased and put in the optional rental program.

How Will This Make a Good Investment ?
Historically high occupancy and rental rates by Karisma Hotels, in the already existing hotels along the Riviera Maya will cover your costs and give you a very healthy return on your investment.
Karisma Hotels has been honored with prestigious international awards for its exceptional service and, excellent hospitality, and innovation.

With prices starting from $299,000.00 usd,
these 2 or 3 bedroom condos and penthouses make a wonderful lifestyle investment that you can enjoy for many years to come.

For details or prices judi@resorts-real-estate.com or 1 604 628 7247

If you cant make it to the International Real Estate Expo,
We will be available for private meetings up until November 2nd.

As well, Living Riviera Maya offers $1500 usd travel rebate for trip to Riviera Maya, upon purchase.