1. Can a name of a foreign national of non-Indian origin be added as a second holder to a commercial property purchased by a NRI / PIO?
2. Can a NRI or PIO hold any commercial property in India acquired by way of inheritance from a person resident in India?
Yes. A person resident outside India can hold commercial property acquired by way of inheritance from a person resident in India
3. Can a NRI or PIO hold any commercial property in India acquired by way of inheritance from a person resident outside India?
With the specific approval of Reserve Bank a person resident outside India may hold any commercial property in India acquired by way of inheritance from a person resident outside India, provided the NRI/PIO had acquired such property in accordance with the provisions of foreign exchange law in force at the time of acquisition or under FEMA regulations
4. Are NRIs / PIOs who have purchased commercial property under general permission required to file any documents with Reserve Bank of India?
NRIs / PIOs who have purchased commercial property under general permission are not required to file any documents with the RBI.
5. Can a NRI / PIO transfer by way of mortgage his commercial property to an authorized dealer / housing finance institution in India?
6. Can a NRI / PIO transfer by way of mortgage his commercial property in India to a party abroad?
No. He should seek prior approval of RBI.
7. In the case of NRIs residing overseas, can property be purchased through an agent or through the Power of Attorney?
NRIs staying abroad may enter into an agreement through their relatives and/or by executing the Power of Attorney in their favor as it is not possible for them to be present for completing the formalities of purchase (negotiating with the builder or real estate developer, drafting and signing of agreements, taking possession, etc.).
These formalities can be completed through some known person who can be given the Power of Attorney for this purpose. Power of Attorney should be executed on stamped paper before the proper authorities in the adopted country. Power of Attorney cannot be drafted on the stamp paper bought in India.
8. While purchasing real estate most developers demand a Power of Attorney in their favor, is there a way to avoid it?
One can choose not to grant the Power of Attorney (POA) to the developers. However this will mandate the mailing of all documents to your foreign residence and associated time delays. A good compromise is to grant the POA to the builder only for specific necessary items
9. Does investment in commercial properties offer good returns?
As far as commercial properties go, the appreciation will, depend on locations and the overall economic environment for such commercial properties. Unlike residential, it is also subject to business risks. There are some high-end commercial properties where your initial investment would have to be higher and where the returns can be consistently positive. Good market information for investment in commercial property is desirable to avoid risks. However, there is a silver lining for small investors for investment in commercial properties - through the newly created instruments, the real estate mutual funds