Goa property in India, which is an ever increasingly popular place for those in search of a place in the sun, there are incredibly strict rules in place relating to the sale of freehold property to foreigners and those who have been guided around the legalities by less than scrupulous representatives of the real estate profession are starting to panic as a new crackdown is being discussed that could see the investment properties of those foreigners who have not upheld the letter of the law being confiscated. This article contains essential advice for foreigners buy property Goa in India.
Up to 3,000 Britons own property in Goa and around 5,000 units of property have been sold to foreign buyers since the Foreign Exchange Management Act of 1999 came into force. The Act covers the legalities relating to the purchase, sale and resale of real estate in Goa to non-resident individuals and foreigners and it clearly states that non-residents cannot buy property in Goa until they have been resident in Goa for 182 days in any one given financial year.
Naturally enough this restriction is quite extreme and it has been alleged that the likes of estate agents, lawyers, builders and even those making private sales have been offering bribes and backhanders to government officials to get around this stipulation for their clients. The gravity of this accusation has not gone unnoticed, nor have the incredibly far reaching implications for all those involved – especially those foreign buyers who have not bought after being resident in Goa for the required 182 days.
When buying property in India in Goa the advice is useful for the services of only those estate agents who can present to you their certificates of Service Tax Registration and Company Registration, use an independent lawyer who specialises in real estate law and can tell you whether and when you are eligible to buy. Next you have to ensure your lawyer does detailed searches on the title of any parcel of land or piece of property you are contemplating buying and can independently certify that there are no ownership disputes outstanding on the real estate.
Whatever you do don’t send any money to your agent, builder, developer or solicitor to an account other than one held in Goa – their use of offshore accounts is illegal and if you pay money into them you have acted illegally. Do not trust anyone who says there are ways around the legalities do not try and cut any corners. Take time finding out about the obligations you will have to fulfil as a foreign buyer and fulfil them.
