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Purchase Process in India

Below is the standard purchase process in India and issues that may affect a purchase:

• No purchase restrictions exist for non-resident Indians or persons of Indian origin. A foreign national of Indian origin is considered a person with either a parent or grand-parent born in India or a person with an Indian passport.
• A foreign national can only purchase property in India if they have been a resident for a minimum of 183 days of a financial year. If this is so, rights are the same as any other resident.
• A foreign company with established business in India can acquire property in India if it proved to be necessary to carrying on the business.
• To ensure all legalities are covered, using a reputable investment real estate agent is advisable.
• To protect the buyers' interests during property purchase, it is advised to use a real estate attorney.
• The attorney will draw up a Sales Agreement once the price of the chosen property has been negotiated with the seller.
• Due diligence will be carried out by the lawyer, upon which the buyer should obtain the title documents, which should be checked for encumbrances.
• Prior to signing, conveyance documents must be stamped at the Stamp Duty Office.
• Final payment of the remaining balance of the purchase price should then be paid.
• The deed is registered at the Sub-registrar of Assurance Government.

Costs of a standard property purchase in India include the following:

• The deposit payment is usually between 10% and 20% of the purchase price.
• Registration fees are between 1% and 2% of the property value.
• Stamp Duty varies between 4% and 10% of the purchase price, according to area.
• Legal Fees are on an hourly basis, normally between €50 and €100.

The Obelisk Advantage:

As Obelisk approaches its projects purely from an investment perspective, its priority is to deliver each real estate product with an emphasis on simplicity and transparency throughout the purchase process. Therefore, Obelisk has already identified the purchase procedure for its clients as a simple, four step process:

1. The client chooses and reserves the unit that best suits their investment requirements, and Obelisk takes the client through a compliance procedure.
2. An independent lawyer, sourced and appointed for the client by Obelisk, will have already carried out full due diligence on the real estate product. They will issue all purchase contracts and paperwork to the client.
3. On receipt of this contract, the client will sign and make the first payment. The lawyer will notify the client of all further payments when required.
4. The appointed lawyer will also represent the client in all aspects legally required within the country of purchase, ensuring that clients of Obelisk enjoy the benefits of simple and hassle-free real estate investment.