10 Tips for NRIs Buying Land in India

Who will miss the opportunity to own a piece of land in their home town or city? Buying a land in India is not only a good investment but also has more sentimental value for the Non Resident Indians.Also India is also a good place for investing in real estate as the land prices are increasing day by day.

Choosing the location

This depends on the purpose for which you are buying the land. It may one of the following:

– For constructing a house in future
– For commercial purposes
– Purely for investment purpose

Choose a developing area with good water and transport facilities if the land is for residential or commercial purposes.Mostly center of the cities won’t have any free land available.Even it is there, it will be too costly.

If it is only for investment, you can buy a land with more area outside the city. Check the popular real estate websites below to get an idea:

99acres, Indiaproperty, Magicbricks, Makaan,Sulekha, Property Bazaar

Check the type of land

Legally you cannot buy an agricultural land in India.Some states allow only the farmers to buy the agricultural land. So if some agent tells you that the land can be easily converted to residential land, don’t take that and get yourself into trouble.

Make sure that the land is not reserved by the government for some purposes. Also avoid buying the land near railway stations as there is a chance for the government to buy the land and you may not good price for that.

Check if the land is freehold and not leasable even though most of the lands are freehold only.Freehold means the land is fully owned by you and you can do anything. Leasable means you can own the land only for a certain period of time( from 30 to 99 years).

Documents to check

Title leed

Get the original title leed of the land from the owner. Make sure that he/she is the owner of the land and he/she has the right to sell the land . You can also ask the previous deeds of the land and get all these documents verified with the help of a lawyer. Don’t accept the Xerox copy of the document. Only if he/she have pledged the land in a bank or anywhere for a loan, he/she may not have the original document.

Encumbrance certificate

This document can be obtained from the sub registrar’s office in which the land was registered.It contains details like previous owner of land, when it is sold etc. You should check the certificate of the land for the past 15 years to confirm the land does not have any legal disputes. Some state government websites have the option of requesting this certificate online.

Measure the land

Get the help of a surveyor to measure the area, dimensions,borders and other details of the land and make sure it matches the one in the title leed.

Multiple owners for the land

If the owner of the land is more than one person, get release or no objection certificates from all the owners to proceed further in the process.

Pledged land

If the land is pledged for some reason in a bank, get a release letter from the bank mentioning that the dues for the land are paid and there is no pending amount.

Receipt for the taxes

Get the original receipt for all kinds of taxes paid till date from the owner. If they have any other bills like water get that also.

Sale Agreement

After the negotiation is finished and before the registration,usually a sale agreement will be made between the owner and the buyer . The following information will be typed on a stamp paper (usually of Rs.50 value )

– Agreed cost of the land
– Details of the advance amount given by the buyer
– Details of the land
– Agreed time span in which the actual sale will happen
– Procedure to be followed if any discrepancy in the above

The document should be signed by the buyer and owner and two witnesses.

Expenses involved

Apart from the cost of the land, the buyer has also to bear the expenses for stamp duty, registration fees, lawyer fees,fees for the document writer to prepare the title leed.
All these depend on the cost of the land and varies accordingly.Registration fees is usually 2% of the original cost. If you are buying a land from a property dealer, he may waive some of these expenses.

Avoid cash payments

Don’t pay cash for any of the expenses. Pay either cheque or demand draft and take a photo copy of that before giving it.

Power of attorney

If you cannot go personally to purchase the land, give power of attorney to any one member in your family .It is a registered document for giving authority to one person on behalf of the other for handling the legal formalities.


Registration is the final step in the purchase of the land and is done at the sub registrar office .Submit all the documents and wait for your turn.Once it comes, both you and the seller have to agree to the purchase ,sign the document and place the thumb impression on a separate paper and pay the registration and other fees.

That’s it !!! And now you are the proud owner of a piece of land in your mother land.

You might find these articles interesting
    None Found

Mani Karthik

About the Author

Mani Karthik

Blogger, Mentor & Entrepreneur.
Lived in more than 10 cities & 3 countries.
I share everything I learned on this blog, so that you benefit.

One response to “10 Tips for NRIs Buying Land in India”
  1. sunpreet singh

    very good platform and content. thanks

Leave a Reply

Your email address will not be published. Required fields are marked *

How can this blog help you?

Why should you subscribe?

Start Business

Learn how to make money online through online businesses.
Learn from our helpful guides.

Grow Money

Get rich. Invest better.
Make better financial decisions.
Learn from our insightful articles.

Get Smarter

Get smarter than the average person. Learn life hacks and skills that will make you a better person.