Buying property in India from abroad: the checks that matter when you can't be there

In May 2025, the Punjab and Haryana High Court refused bail to two people accused of helping sell an overseas owner's land through an impersonator. Justice Harpreet Singh Brar called the case part of a disturbing trend and wrote that it was "symptomatic of systemic abuse, where absence is weaponised". The 14-kanal property, worth several crores, was registered as sold for ₹30.20 lakh, and the cheques were never cashed.

That case involved an owner, not a buyer. But it shows the underlying problem anyone transacting from abroad faces. When you can't be in the room, someone else's paperwork stands in for you. This guide covers how to make that paperwork trustworthy.

What changes when you buy from abroad

Overseas buyers are no longer a niche. At DLF, one of the largest developers, NRIs went from 5% of sales in FY22 to about 23% in FY24.

Buying from abroad doesn't change the checks a property needs. It changes who carries them out. A resident buyer can visit the site, meet the seller and sit in the registrar's office. An overseas buyer usually relies on a relative, a lawyer or a representative for some of those steps. The risk sits in that gap, so the checks below are built around closing it.

An independent verification routine

Work through these before you pay anything beyond a refundable token, and keep a written record of each step.

1. The seller is the owner. Ask for the registered title deed and match the seller's identity documents against it. For a new project, match the developer's legal entity name to the RERA registration.
2. Title is reviewed by a lawyer who works for you. Appoint an independent property lawyer in the state where the property is. Don't use the seller's lawyer or one the broker suggests. Our title check guide covers what to ask for.
3. The project is registered, if it's under construction. Check the registration number and completion date on the state RERA portal yourself. See how to check RERA registration.
4. Someone you choose sees the property. Ask a person independent of the seller and broker to visit, photograph and confirm the flat matches the documents: unit number, floor, area, condition.
5. Bank details are confirmed separately. Before each transfer, confirm the account by a phone call to a number you already hold, not one sent in the same email or message as the payment request.

Representation: what a power of attorney can and can't do

Most overseas buyers will sign some documents through a representative, using a power of attorney. Two things matter most.

A power of attorney doesn't transfer ownership by itself. The Supreme Court held in 2011 that "GPA sales" or "SA/GPA/WILL transfers" do not convey title. Ownership passes only through a properly registered sale deed. A power of attorney lets someone execute that deed for you. It can't replace it.

Scope it to one transaction. Ask your lawyer to draft a power of attorney that names the specific property and the specific acts allowed, such as signing and registering the sale deed, with an end date. A broad, open-ended general power of attorney gives someone authority well beyond your purchase.

Formalities depend on where you sign it, so ask your lawyer:

• In which country should I sign it, and does it need notarisation and attestation by the Indian mission, or an apostille?
• Does it need stamping and registration once it arrives in India, and within what time?
• Who should hold it, and how do I cancel it after the sale?

Payment and contract checks

• Pay only into an account in the seller's or developer's name, matched to the sale agreement. Never pay into a broker's or third party's account.
• Get every payment milestone, cancellation term and refund condition in the signed agreement, not in messages.
• Keep a record of every payment and receipt. Your bank will need them when you later want to send sale proceeds abroad.

Tax and repatriation: the rules to plan around

These rules apply when you eventually sell. They shape how long you hold the property and how you fund the purchase.

Tax is deducted at sale. When a non-resident sells, the buyer must deduct tax. Per the Income Tax Department, for property held more than 24 months the rate is 12.5% for transfers on or after 23 July 2024; for property held 24 months or less, it's 30% for an individual. Surcharge and cess are added on top.

Getting money out has limits. Per RBI's FAQ, sale proceeds can be repatriated if the property was bought in line with foreign exchange law and paid for in foreign exchange through banking channels. For residential property, this applies to no more than two properties. The overall limit is USD 1 million per financial year. How you fund the purchase therefore affects what you can later send back.

Questions to take to a tax adviser before you buy:

• Will my residency status change before I sell, and how does that change the tax?
• Should I apply for a lower tax deduction certificate when I sell?
• Which account should I pay from, and which should sale proceeds go into, to keep repatriation open?
• What documents will my bank need to send the money abroad?

What a Gulmohar evaluation does and doesn't do

A Gulmohar evaluation checks whether the price is in line with the local market, whether the purchase fits your finances, and how it holds up under stress such as a rate rise or an income drop. It doesn't verify original documents, certify title or advise on tax. When you're buying from abroad, use it to test the economics, and use an independent lawyer and tax adviser for the rest.