Why NRIs Need a More Rigorous Checklist
Distance creates vulnerability. A buyer in India can physically visit the sub-registrar's office, check records in person, and walk the land boundaries. An NRI cannot. Fraudulent sellers know this and specifically target NRI buyers with overseas photos, inflated prices, and incomplete documents.
Here is the 20-point checklist that eliminates the most common NRI property fraud scenarios.
Title and Document Checks (1–8)
1. **Patta / Title deed in seller's name** — verify at the district tahsildar office. Don't rely on seller-provided copies. 2. **EC for 15 years** — obtain directly from the SRO online portal (tnreginet.gov.in), not from the seller. 3. **FMB sketch matches actual land** — compare with survey department records. 4. **No mortgage or encumbrance** — EC will show this; also check with all local banks. 5. **Legal heir search** — if seller inherited the land, confirm all legal heirs have signed (intestate succession requires consent of all). 6. **Court case search** — sub-registrar's office records any court injunctions; also verify through a local lawyer. 7. **Society/project declaration forms** — for plotted layouts, verify developer's legal status and that the layout is in the developer's name, not a nominee. 8. **Land use confirmation** — residential land should be classified as residential in the patta, not agricultural. Agricultural land can't be directly mortgaged or sold to NRIs in the same way.
Approval Checks (9–12)
9. **DTCP/CMDA approval letter** — original, not photocopy. Verify the approval number at the DTCP district office. 10. **Layout plan matches ground reality** — plot dimensions on the plan should match physical measurement. 11. **Infrastructure commitments delivered** — roads, water, drainage as mentioned in approval should be completed. 12. **TNRERA registration** (for larger layouts) — verify on tnrera.tn.gov.in.
Financial and Legal Checks (13–17)
13. **Property tax receipts up to date** — arrears become your liability post-purchase. 14. **Electricity and water connection status** — pending dues transfer to buyer. 15. **Price in line with market** — verify recent registrations in same area via TNREGINET. 16. **Source of seller's title** — was it purchased, inherited, or gifted? Each has different due diligence requirements. 17. **Capital gains tax compliance** — buyer must deduct TDS at 1% (Indian seller) or arrange FEMA compliance (if seller is NRI/OCI).
Transaction Safety (18–20)
18. **Use a lawyer, not the seller's lawyer** — hire independently. Budget ₹15,000–25,000 for a reliable property lawyer. 19. **Payment via banking channel only** — NRE/NRO account transfer with clear reference. Never cash or unverifiable transfer. 20. **Physical presence at registration or trusted POA** — don't complete registration through anyone who isn't either you or a POA given to a verified, trusted individual.