OCI buying property in India - Form IPI 7, NRE accts

[gcbayarea]

Hello,

I am an USC and will be getting my OCI soon. I am going to buy a residential plot of land in India after getting OCI. I know that it is advisable to pay thru NRE accounts and also register the purchase with the RBI (form IPI 7). Additionally, I am also putting one of my close relatives in India (who is an Indian citizen) as a joint owner of the property just for safety sake.

1. Is there anything else I need to do?

2. Also, how strictly do people follow these rules (paying thru NRE accts , form IPI 7). I mean does most OCI holder buying land in India do these things?

Thanks

 

[ginnu]

Hello,

I am an USC and will be getting my OCI soon. I am going to buy a residential plot of land in India after getting OCI. I know that it is advisable to pay thru NRE accounts and also register the purchase with the RBI (form IPI 7).
------That is correct. Pay from NRE account A/C payee check if you want to sell the plot later and want to transfer the money back to US.

Additionally, I am also putting one of my close relatives in India (who is an Indian citizen) as a joint owner of the property just for safety sake.
----------- What kind of safety sake? Relative may create the Problems in future.
1. Is there anything else I need to do?
-------
2. Also, how strictly do people follow these rules (paying thru NRE accts , form IPI 7). I mean does most OCI holder buying land in India do these things?
--------- People from North India Or Gujarat or NRI working in Golf Countries dont read the laws and India immigration department does not give them any printed meterial when they depart India that they can buy Agricultural land once they get OCI. Registrar does not know what is OCI or PIO. Why the registrar should know about FEMA or RBI rules? Nobody asks you your Citizenship when you buy Plot, Flat Or Agricultural land or Fam House. Registrar just asks your ID like PAN card or India Driving Licence and two witness with ID. How many know about form IPI 7? how many know that it should be sent to RBI Mumbai? I think 1% may be folowing the rules. Who cares ? Only the person who can harm you is your relative who knows the rule or you tell him the rule. When visit India just visit Police station and tell the Inspector that Mr X is Citizen of USA and he has Baught Agricultral land. The Inspector will be looking at you as if you are..... Because he does not care who baught what and how. He is intrested if he can get some money.
Suppose USA Citizen X Buys agricultral Land and you know it where are you going to complaint against X?
Thanks

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[gcbayarea]

Thanks Ginnu.

The relative I was thinking of putting as joint owner was either my mother or my mother-in-law. While I am sure that they are not going to cheat me, I have decided against putting them as joint owner because of the paperwork headache upon their passing away (equal division among children rule etc).

Also, my family enquired with some attorneys in India and came to the conclusion that it is better not to highlight the fact that I am an USC when registering the plot of land. I can just register the land with just PAN card and driving license as you said. I am not planning to ever sell this plot. This is intended for my own use when I return to India at "some point in the future". However, when/if I buy a second plot as an investment, I think as u said, I will highlight USC/OCI status so that I can repatriate the money.

Thanks again

 

[ginnu]

Thanks Ginnu.

The relative I was thinking of putting as joint owner was either my mother or my mother-in-law. While I am sure that they are not going to cheat me, I have decided against putting them as joint owner because of the paperwork headache upon their passing away (equal division among children rule etc).
--------------- Register the plot on Your Name.
Also, my family enquired with some attorneys in India and came to the conclusion that it is better not to highlight the fact that I am an USC when registering the plot of land.
------That is Correct. Nobody is going to ask your passport or Citizenship. You also did a mistake by informing your family about FEMA rule or RBI rule that you are USC and what is the rules. Act as if you do not know the rules and you are Indian Citizen, no need to show your US passport or PIO Card or OCI.
I can just register the land with just PAN card and driving license as you said.
------Correct
I am not planning to ever sell this plot. This is intended for my own use when I return to India at "some point in the future".
However, when/if I buy a second plot as an investment, I think as u said, I will highlight USC/OCI status so that I can repatriate the money.
---------- No need to highlight USC/OCI status still you can register on your name and you can repatriate the money back .

Thanks again

------

 

[gcbayarea]

Thanks ginnu.

How do I repatriate the money back after I resell if I do not register the land as OCI initially upon buying?

 

[ginnu]

Thanks ginnu.

How do I repatriate the money back after I resell if I do not register the land as OCI initially upon buying?

Just register the land on your name. NO USC or /OCI info required at the time of registration. Through Bank you can repatriate the money back . if possible pay through your NRE account crossed Check or NRO account Crossed Check. When you sell then post or ask your CA you can easily or Ligaly transfer the money.