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How can an NRI buy a flat or house in Bangalore? A step-by-step guide

Buying a property in Bangalore as a Non-Resident Indian (NRI) may seem complex, but with the right guidance, it can be a smooth and hassle-free process. Here’s a simplified five-step approach:

  1. General Power of Attorney (GPA)
  2. Sale Agreement
  3. Home Loan (skip this step if self-financing)
  4. Tax Deducted at Source (TDS) (skip if the purchase price is below Rs. 50 lakh)
  5. Sale Deed Registration

To help you understand better, let’s take the real-life example of Mrs. Priya, an NRI residing in Denmark, who successfully purchased a 2BHK flat in Bangalore.

Step 1: General Power of Attorney (GPA)

Since Mrs. Priya was unable to travel to Bangalore for registration, she nominated her mother as her lawful representative. Here’s how she completed the GPA process:

  1. Drafted the GPA in a Word document.
  2. Printed the document on A4-size paper.
  3. Affixed her passport-size photo on the last page.
  4. Signed the GPA in the presence of a Notary Public in Denmark, along with two witnesses.
  5. The Notary Public attested the document and issued a Notary Certificate.
  6. Self-attested a copy of her passport.
  7. Sent the notarized GPA and self-attested passport copy to her mother in India via courier.
  8. Her mother received the courier within five days and then visited the District Registrar Office (DRO) with:
  • The original GPA
  • Self-attested passport copy
  • Her Aadhaar card
  • A request letter for adjudication
  1. The DRO verified and adjudicated the GPA, making it legally valid in India. Refer to below GPA image

Below is the image of the request letter signed by the mother

 

Step 2: Sale Agreement

The sale agreement is a crucial document as it outlines the terms and conditions of the purchase. Here’s how we assisted Mrs. Priya:

  1. Drafted the sale agreement.
  2. Printed it on A4-size paper.
  3. Seller and Buyer (represented by GPA holder) signed on all pages, along with two witnesses.
  4. Generated a K2 challan for adjudication (Rs. 4,975, which is 0.1% of the buying price). (Note: As of November 2024, the adjudication fee is 0.5% of the buying price.)
  5. Adjudicated the agreement at the K.R. Puram Sub-Registrar Office.

Below is the image of sale agreement:

   

Below is the image of K2 challan for sale agreement adjudication

Below is the adjudication receipt

  1. Home Loan:

Home loan process is triggered with the Bank. We triggered with HDFC Home Loan, Kasturba Road Branch in Bangalore.

The bank looked at the following documents:

  • Income proof of Mrs.Priya
  • Property marketability, (that includes seller’s sale deed & encumbrance certificate)
  • Sale Agreement (shared the image above)

Mrs. Priya from abroad exchanged all the documents with bank via email and we submitted the physical copy of seller’s sale deed, encumbrance certificate, and above sale agreement to Bank. We got the loan sanctioned in 15 working days.

The bank issued the loan amount in cheque, favoring the seller’s name

Step 4: Tax Deducted at Source (TDS)

TDS applies if the property value exceeds Rs. 50 lakh. However, in this case:

Mrs. Priya’s purchase price was Rs. 49,75,000.

The guidance value was Rs. 45 lakh.

Since both were below Rs. 50 lakh, no TDS was required.

(Note: TDS is applicable if either the purchase price or guidance value exceeds Rs. 50 lakh.)

Step 5: Sale Deed Registration

The Sale Deed is the final document that transfers ownership. Here’s how we assisted in registration:

  1. Drafted and printed the Sale Deed on stamp paper.
  2. Signed by the seller and GPA holder, with two witnesses.
  3. Applied for registration through Kaveri Online Services and booked a slot.
  4. Paid the applicable government fees:
  • Stamp Duty & Surcharge: 5.1%
  • Registration Fee: 1%
  • Cess: 0.5%
  • Scanning Fee: Rs. 35 per page
  1. Required documents included:
  • Sale deed
  • Khata
  • Tax receipts
  • Seller’s Aadhaar & PAN
  • Buyer’s PAN & GPA
  • Witnesses’ Aadhaar
  1. On the scheduled date, all parties visited the Sub-Registrar Office, where:
  • Biometric authentication and photographs were taken.
  • The bank issued the final payment to the seller.
  • The seller handed over the original property documents and keys.
  • The bank retained the original title documents for loan security.

Below is the image of the registered sale deed:

Final Thoughts

Buying a property in Bangalore as an NRI is entirely manageable with a trusted local representative. Most tasks can be coordinated via email, calls, and WhatsApp.

Our Services

We provide end-to-end assistance for NRIs buying property in Bangalore, including:

  • Power of Attorney
  • Sale Agreement
  • Home Loan Coordination
  • TDS & Challan Payment
  • Sale Deed Registration
  • ekhata
  • Property Tax Payment

For assistance, contact us at pgnproperties@gmail.com or WhatsApp +91-97424 79020.

Thank you for reading!

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