Legal Checklist: What NRIs Need to Know Before Buying Property in Mumbai

For NRIs, Indian real estate—especially in Mumbai—remains a favored asset class. However, certain legal requirements are essential for a secure transaction:

• Eligibility: Only Indian passport holders and Overseas Citizens of India (OCIs) can buy residential or commercial property. Agricultural land purchases are not permitted.
• Funding: All payments should be routed through NRE, NRO, or FCNR accounts per RBI guidelines. Never engage in cash deals.
• Documents Required:
  • Indian passport/OCI
  • PAN Card
  • Overseas and Indian address proof
• Power of Attorney (PoA): If not present in India during execution, NRIs must designate a trusted representative through a legally executed PoA.
• Due Diligence: Get legal verification for title documents, encumbrance, and RERA registration.
• Taxation: NRIs need to be aware of TDS, capital gains tax, and respective exemptions.

Always consult a lawyer before signing any agreement and retain all original documents for future NRI repatriation or resale.