Thinking of buying...
 

firstly I would like to say hello everyone,

Newbie here so please excuse my ignorance but I thought that this would be the perfect place for sound advice and help.

I've read so many horror stories with regards buying bit lots of threads are up to 5 years old.
Here is my opportunity and I really would like some impartial advice from anyone who can genuinely help.

As the thread suggests, we are Brits who are thinking of purchasing in the highland beach resort, Candolim.
The apartment that we are looking at currently belongs to family members (Brit) who are thinking of selling due to ill health.

They have "owned" the property for 12 years and say they have done everything right and never had any issues, however when it comes to parting with my "hard earned" I thought I'd try a little investigation. I'm unsure if the laws are different if selling to a family member or not...

Firstly could anyone give me sound up to date advice regarding the possible purchase?

Secondly, if we decided to go ahead, we would like to do EVERYTHING legally as we will not be in a position to retire for the next 5 years and will only use it for the winter months, even after purchase and during retirement, so could anyone recommend the very best solicitor who would do things correctly

And finally, should our family members change their mind and decide not to sell, we have also been offered an apartment direct at Highland beach. Would this be advisable or be any different?


Thanks for any help in advance.

Kind regards

Puerto.

Re: Thinking of buying...
 

Hello Puerto

Unless you are of Indian origin it is no longer possible for a foreigner to legally purchase property in India.
(The law changed since your family members purchased their property).

You can rent a property.

Re: Thinking of buying...
 

Thanks for that Bipat,

I can't say I'm not a little disappointed but forewarned and all that...

What would be the law regarding them "giving" the property to a family member?

Would this be the same as it wouldn't actually be a purchase?

Re: Thinking of buying...
 

No, you would not be able to change names on the deeds etc. In effect your family member would still be the owner.
A foreigner can only inherit or rent.

They can only sell to someone of Indian origin or Indian nationality. This would not be difficult particularly if they are willing to accept some of the price in 'black' money.

Re: Thinking of buying...
 

Thanks again Bipat.

Re: Thinking of buying...
 

Can a foreigner inherit from a foreigner? Can the current "owner" sell?

Re: Thinking of buying...
 

Hi,
My last information from my lawyer in Goa is different. He told me strait away "yes" is possible again for a foreigner to buy. In Goa you need additionally a permission from home department which is not needed in other states. Of course you have to comply with FEMA.
For a foreigner in India it´s only possible to own 1 property or apartment.
Anyway think twice as India is not safe with rules and regulations. I'm Swiss and I have a property in Goa since 12 years. The last 5 years I was in a case with the ED like many other foreign property owners. Just recently I get cleared with the report in my hands. It was a costly and time consuming process and always a heavy burden to carry. Hope nothing like this for the future. Now with the report in my hands I have to say to myself it was the right decision to buy this property as the place and Goa is the best choice to live for me.

Re: Thinking of buying...
 

About inherit.....
Yes, foreigners can inherit from foreigners I think even from a Indian owner. The problem can be that last will's can be easely chalanged in a Indian court. In my case I have 3 children and I think it's better to make the last will only for 1 child or person. It's easyer to sell after. Of course this last will should be done in Goa with a trustfull advocate.

Re: Thinking of buying...
 

It is not possible to buy under present law unless you are already resident. Which means already employed or running a business, it is not possible for a foreigner under present law to just go there and buy a property.

https://www.gov.uk/how-to-buy-property-in-india

Re: Thinking of buying...
 

or there for any other purpose, in such circumstances as would indicate his intention to stay in India for an uncertain period OP does not say specifically whether his relatives have the deeds to their apartment, if they do then inheritance is probably the best way to go but there are many pitfalls to writing a Will in Goa. If they only have an Agreement for Sale then it is possible to 'transfer' that, but that opens up the whole can of worms re. registration of deeds involving foreigners.
Purchase by resident foreigners is possible, but is likely to be long-winded and fraught with problems.

AndyD 8-)₹

Re: Thinking of buying...
 

Correction : there has been no new legislation regards the purchase of immovable property by foreigners in India during this time, there have been contradictory and retrospective interpretations of the existing legislation and some further guidance through RBI Master Circulars; no change in the law.

The FCO guidelines are not entirely correct and I believe this has been reported to them though not corrected in their online advisory.

The reality that a foreigner can legally purchase immovable property in India has been established in practice i.e. there are foreigners in India who currently own property in India legally.

As Andy cautioned, this is a difficult process and inadvisable unless you have a masochistic predilection towards stress and aggravation.

Re: Thinking of buying...
 

Reinterpretation indicates change, there are foreigners who purchased before.
The situation now is that a non-resident foreigner cannot purchase.
The OP has said that they want to use the property only during winter months so will therefore not be 'resident' as defined.

(I am not sure Andy's inheritance suggestion applies at the moment for the OP!! their relative is presumably will still be 'with them' for some time).

Re: Thinking of buying...
 

Thanks for all of your replies everyone. It still looks as clear as mud and I think it may pay to take independent legal advice. Does anyone know of a very good Indian lawyer who may be able to help, either in the UK or in Goa?

If it's a case of starting the business visa process and travelling or staying in the country for a defined period for a start, then this would be possible. I would just like to ensure that it's done methodically.

Re: Thinking of buying...
 

You would need to have a genuine business and show an intention of being actually resident.

http://www.rbi.org.in/scripts/FAQView.aspx?Id=33.

Re: Thinking of buying...
 

reinterpretation indicates that the original is unchanged, but it is being viewed differently.
In the context of foreign ownership, property law has not changed since 2000, I'm not even sure that the law is being reinterpreted - parts of it are being ignored but that is not unusual in India.
there were resident foreigners who purchased before 2007 who were able to register their deeds; there were foreigners who purchased before 2000 with RBI permission, it is possible (though not very likely) that a few of them were not resident as per FERA.... without RBI permission. This has always been the case.
An ill advised admission perhaps, but there have been several cases accepted by the the ED where people are routinely away from India for 5 or 6 months a year. Legally speaking you only have to be resident at the instant of purchase but....
It is in the nature of inheritance that the testator(s) must be dead.

Bipat, I didn't comment on your earlier post because even though technically incorrect it did give a valid flavour of the situation, but please don't try to justify it as legally correct.

AndyD 8-)₹