OCEAN PARK 2 – MATHIAS CONSTRUCTION PVT. LTD., PANJIM – GOA
IMPORTANT INFORMATION FOR PROPERTY PURCHASE IN GOA FOR FOREIGNERS/NRI’S/PEOPLE OF INDIAN ORIGIN

1. Are Non-Resident Indian’s (NRI’s) allowed to purchase a Residential Property in Goa ?
   Non-Resident Indian’s and People of Indian Origin with Foreign Passport Holder can purchase of residential property in Goa/India. They are treated wholly as Indian Citizens and therefore don’t require permission to purchase from the Reserve Bank of India .
   
2. How do you define a foreign passport holder but of an Indian origin?
   A foreign passport holder is deemed to be of Indian Origin if: 1) he held an Indian Passport at any time or ii) he or is father or paternal grandfather was a citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955. However this does not apply to citizens of Pakistan , Bangladesh , Afghanistan , Bhutan , Sri Lanka or Nepal .
   
3. How should the purchase of residential immovable property be paid for by NRI’s under the general permission?
   The purchase consideration should be met either out of inward remittance in foreign exchange through normal banking channels, or out of funds from NRE/FCNR accounts maintained with banks in India .
   
4. Do you have to inform Reserve Bank of India when selling property?
   Yes. Reserve Bank has granted general permission for sale of such property. However, where the property is purchased by another NRI, funds towards the purchase consideration should either be remitted to India or paid out of balances in NRE/FCNR accounts.
    
5. What formalities have to be completed by NRI’s to purchase residential immovable property in India under the general permission?
   They are required to file a declaration in form IPI 7 with the Central Office of Reserve Bank at Mumbai within a period of 90 days from the date of purchase of immovable property (Sale Deed) or final payment of purchase consideration along with a certified copy of the documentary evidence for the transaction and bank certificate for the money paid.
    
6. What are the Tax Implications on eventual sale of the property by an NRI? Can an NRI take the net amount outside India in sterling or dollars after tax has been paid?
   On an eventual sale of property, there will be tax implication on profit gain in case of individual. Individual will be charged upto 30% tax on the gain. Also in case of short term gain, the charge will be taxed at 30% if within three years. And above 3 years i.e. Long Term gain will be taxed at much lesser rate i.e. approx. 15%.The Net amount, after deducting the necessary taxes and charges, can be taken back in any currency outside India .
    
7. How do we ascertain the credibility of the Builder and the Project?
   It is essential that you may know the background of the Builder? Since there are already existing projects, it will be easy to understand the working of the concerned builder.If earlier Projects have been completed in time & possession of the Apartments/Villas, especially those sold to NRI’s. Reference can be made and enquiry sought with such owners of apartments / villas about their satisfaction with regards to their stay, maintenance and overall project work.
    
8.  Through whom can we purchase an Apartment or Villa in the Project?
   You can purchase an Apartment/Villa directly with the Sales Team of Mathias Construction Pvt. Ltd. or from the appointed agents. A Website is hoisted which provides information regarding the various projects, site plans, etc and just an enquiry email will be a starting process from this link. The address of the link is www.mathiasgroup.com.
   
9.  What would be the total cost of purchasing the Apartment/Villa?
   The price will differ depending on the size, location and view of the Apartment, so only on enquiry one will know the exact price at the stipulated time, besides the cost of the apartment, there will be other incidental costs such as Maintenance charges, Registration charges, Local Taxes as applicable, etc. Details will be provided on request.
   
10.  What is the role of the Agent? And what would be his fees?
    All Agents will see you through the entire Sales Process and will be responsible from the initial contact to the final stage that is receiving your keys to the Apartment. For all this he will be paid or will charge a fee at a percentage of the basic price depending on the work load undertaken. We have appointed Agents outside India . Details will be provided upon request.
    
11. What are the legal steps before pursuing the Purchase?
    Besides being impressed with the work of the Builder, the Purchaser must check all the title documents of the said property that the Builder is the sole owner of the same. Ensure that the Construction plans have been approved by the concerned authorities and that the all necessary Government Approvals have been obtained to build and sell the same.
    
12.  What other drawings or plans of the Apartment am I required to see?
    You can peruse drawings of the Electrical, Plumbing, Drainage and Water Supply from the Builder.
     
13. What would be the payment structure to purchase the said Apartment?
    In case the Purchaser wants to make full payment at one instance, the purchaser will be given a 10% discount on such full payment for a limited period.
    
    Otherwise -
    To book/block the flat an initial deposit of Rs.2 lakh will have to be paid then at the time of signing the Agreement for Sale 30% of the Sale Price will have to be paid which will include the 2 lakh deposit made with respect to the Apartment and a Receipt will be give for such deposit and complete the Standing Orders for the monthly installments as agreed. And the remaining 70% will be paid by monthly installments in 24 months with an extension of 3 months if necessary.
    
14. What will be the Rate fixed for the Standing Order for Monthly Payments?
    For the regular monthly payments, the rate is fixed at Rupees 82 to a Sterling and Rupees 43 to a Dollar. Any Fluctuations in the currencies will be borne by both the Builder and Purchaser.
    
15. Will there be a Car Parking Area provided with the Apartment?
    Each Apartment will be provided with a Car Park & the price for the same is Rs.1 lakh. It will be an exclusive slot in the covered stilt area. This amount can be paid with the regular payment.
    
16. Will there be a Maintenance Charge?
    Purchaser is required to make a one time Deposit at the time of taking possession towards Sinking Fund @ Rs. 30/- per sq. ft. This Deposit will be used for major repairs and maintenance, like painting once in 5 years, any breakdown in lifts/Gen Set, Power Back Generator and, any new additions which the Association decides.
    In addition an Annual Maintenance @ Rs.30/- per sq. ft. will have to be paid in advance for Security Service, Common Lights, Common Water, Maintenance of Swimming Pool, Gardens etc which expenditure will be calculated on a quarterly basis & will be informed to the client. In case the amount paid falls inadequate, the client will be required to pay a further sum as required.
    
17. What other expenses will I incur?
    The Purchaser has to bear the expenses pertaining to Registration and Stamp Duty @ 4% of Value of the Apartment. There may be additional Government Taxes as applicable, such as Service Tax, any deposit in the name of the Purchaser or any other.
    
18.  What is the Guarantee given by the Builder with regards the Project?
    The Builder gives to the Purchaser of every Apartment a guarantee for 10 years with regards to Structural Defects. Any other defects such as Plumbing, electrical, etc. the guarantee will be given for 2 years. However, the builder will not take responsibility for wear and tear such as settlement cracks, peeling of paints etc.
     
19. How will the Apartment be handed over to us?
    The Apartment will be handed over unfurnished. For Apartment Specifications kindly refer to website. If any further furnishings are required kindly speak to Sales Team or Agent for details and costs.
20.  Is the price of the Apartment likely to increase?
    The price as quoted may increase periodically depending on the market by 7.5% to 10% at the discretion of the Builder. Thus, the earlier you book the Apartment the better rate you will receive.
     
21. What happens if I decide to withdraw from the Agreement to purchase the Apartment or unable to pay the installments in time to the Builder and the Agreement stands cancelled?
    The Builder on terminating or cancellation of agreement will retain 10% of the amount received till date which includes registration charges, legal fees of lawyer, etc. and repay the remaining only after finding a buyer for the same apartment. The money returned will be interest free.
     
22. What is the current range of prices in sq. ft of the Apartments?
    The prices range from Rs.4,000/- per sq. ft to Rs.5,500/- per sq. ft. which will differ from location, floor & view. The Complete cost of purchasing any specific apartment will be given upon request.
     
23. On or after booking/purchasing an Apartment/Villa, whether there will be any price variation on escalation?
    No, the price quoted for an apartment/villa, at the time of booking/purchasing will not change on escalation.  
    
24. Can I rent my Apartment if I am not using it regularly?
    Yes, you can rent the apartment.
    
25.  Can NRI’s obtain loans for acquisition of a house/flat for residential purpose from financial institutions providing housing finance?
    The Reserve Bank has granted general permission to certain financial institutions providing housing finance e.g. HDFC, ICICI, SBI and various other Banks and authorized dealers to grant housing loans to non-resident Indian Nationals for acquisition of a house/flat for self-occupation subject to certain conditions. Details will be provided upon request.
     
26. If I require more specific details regarding Reserve Bank of India ?
    Please go to: www.rbi.org.in for the website of Reserve Bank of India , click on FAQ then again on Foreign Exchange under “ Jan. 01, 2006 , Acquisition and Transfer of Immovable Property in India by a person resident outside India ”. This site gives a detailed account for all types of Foreign Nationals purchasing Residential Properties in India .

NOTE: This document has been prepared in accordance with Laws & Rules currently prevailing through local government and Reserve Bank of India . They can change any time in future and the website cannot take any responsibility for the information given above.