Problems faced by NRI investors
Finding the correct kind of property is always the struggle especially when you reside in the carried country. The non-resident Indians, for example, at times face various issues while they plan to invest in the Indian realty market.
Here is a list of some common problems faced by the segment of purchasing and their possible solutions-
Lack of clarity on rights
There is lack of clarity on the legal rights of the non-resident Indian home buyers when it comes to investing in India. Haryana and Punjab have the largest population of the non-resident Indians have reported the biggest fraud cases as the locals do dupe the property buyers by selling farmland and the agricultural land illegally.
To actually cope up with this, the investors should deal with the certificate realty brokers only. With the Real Estate Regulatory Authority taking shape, all the property agents are getting themselves verified by the authority of states while making it convenient for the realty buyers to transact. Furthermore, all the realty dealings by the non-resident Indians takes place under Foreign Exchange Management Act (FEMA). As per the rules by Foreign Exchange Management Act, the non-resident Indians can invest in commercial and residential properties. A person of Indian Origin or the non-resident Indian can’t invest in agricultural land or farmland.
Land grabbing issues
Illegal possession or the gatecrashing is yet another challenge that is faced by the non-resident Indians if they are investing in property in India. In fact, the majority of the case, the land grabber as well as the person taking illegal possession is pretty known to the buyer.
Non-resident Indians should get into an illegal agreement in discussion with the realty broker with either the local relative or the family members wells in advance allowing anyone to use their property.
Concerns about developers
A huge number of non-resident Indian investors have certainly suffered with their investment in the wrong project as well as real estate developer who have delayed the projects.
With the realty law in place, the property buyers can check the track record of developers on the website of the state RERA. Now, one can easily check everything about the developer online. Apart from this, internet and social media to check the feedback of the earlier home buyers. The most appropriate way to deal with such situation is to purchase through realty portals which are bound to list the verified projects.
Through RERA would encourage transparency in the unorganized realty market in India, it is the medium which enables access to the information on a specific platform. Due diligence would still be the responsibility of the buyers and investors.