Foreign owned property in Goa, (part Two)

Nick-H

If you are of actual Indian origin then you will satisfy the the FEMA definition, which depends on the father's side, anyway.

My PIOness is courtesy of my Indian wife.

the irish indian

Surely if you have a PIO Card by whatever means then your entitled to purchase property in india.

Do you actually hold a PIO Card? and if so I cant really see how Fema can stop you from buying property. After all this is one of the main benefits for having one in the first place.

Nick-H

That is what I would have thought too...

Yes I do...

And I'll put it to the test one day. Until then, the house in my wife's name is just fine.

TDK

Hi All, i'm not sure if this is the best place to post this thread, but i'd really appreciate some advice if anyone happens to know whether under Indian Law if it is the responsibility of the Freeholder or the Leaseholder to take out Buildings Insurance in India? In 2005 after extensive research (for better or worse) bought an off plan appartment in Goa and i was under the impression that on completion the maintenance charge i paid was to include Building Insurance, however, stupidly i didn't make sure i had that in writing and my lawyer missed that one too (incidently i've nearly lost count of how many liers -Oh i mean lawyers i've been through)!!

Anyway the developer i bought from has told me if i want insurance, i have to pay for it,(which i would understand if i was the freeholder), but due to the recent problems with foreign buyers registering title deeds (despite the fact i met the 183 day + rule),i have resigned my self to trying to organise a 5 year rolling lease now. However, my current lawyer was rather vague about the Insurance issue but when pressed, like me he seemed to think that it is the freeholder's responsibilty to pay for B.I.

I know that Acron (another well known developer) includes B.I. in their service charge (as is usually the case in leasehold appartment ownership in the UK). Anyway if any one could please advise me if its the freeholder or the leaseholder's responsibility i'd be very grateful. Cheers Ps- sorry this is rather mundane but as all my life savings are now used up and India is a bit earthquake prone, not to mention rising sea levels it would help me to sleep better having B.I.!Mind you i guess there's bound to be an opt out clause for 'Acts of God' but may be able to get round that one as a Buddhist(?)

the irish indian

If i didnt have the freehold then i would not bother with building insurance.By all means insure your contents if you wish or if all the apartment owners get together and form a society then look at insuring the building collectively.
There are indian insurance companies online that should be able to give you a quote. To the best of my knowledge its not very expensive but use a reputable company.
Let me know how you get on and best of luck,
Remy

TDK

Thanks Remy for your response and for your good advice. I also think it'd be a good idea for all the residents to maybe take out their proportionate share of B.I. (although i think it should really be included in the maintenance charge). I actually suggested this to the developer many months ago but getting a reply from them has proved to be a bit like getting blood from a stone! Anyway C'est la Vie!Thanks again for your help and I'll let you know of any developments with it, but something tell me that until i can return to India not alot's going to happen!

Nick-H

Even on just a leasehold Insurance might be a good idea --- how about covering your potential liability to your landlord should you somehow cause major damage to the building?

the irish indian

Good point Nick.

crvlvr

Insurance is not required "by law" . Athe lien holder -- lender -- will it require if there is a loan against the property. If you are a leaseholder, it depends on your lease agreement. If the lease is binding regardless of the condition of the property, it is in your best interest to protect yourself by getting insurance. If the leassor has taken on the responsibility to repair the building, then it is in your best interest to ensure that he has an insurance policy.

TDK

Thanks guys for your thoughts and advice. Although i'm still in the process of trying to sort out a rolling lease (incidentally does anyone know if theres a difference between a 'Lease Agreement' and a 'Lease Deed'?, as i was quoted about 800 pounds by my lawyer for him to draw up and register a lease deed which he also said i'd need to pay stamp duty on, despite the fact that the developer told me that only the freeholder pays stamp duty (not the leasee)!
Anyway, since i've already paid in full for the. appartment i would be the one to lose out financially if my appartment got dammaged, but i agree that the building as a whole should be covered by insurance against accidental dammage, Atleast i orriginally managed to get the developer to add into the agreement of sale that they'd be reponsible for fixing any major structural dammage, and i've paid a maintenance charge towards the upkeep of the external communal areas, painting walls etc, but i agree that also getting insurance would be a good idea. I'll let you know of any developments (may take a while to arrange though). Thanks again

goangoangone

A Goan who drinks in a small family run bar/restaurant I use, came over to say hello today and asks if I know anyone who wants to buy a flat. I told him foreigners can't buy property in India and went through the list which we all know so well here, visas, RBI, FEMA etc. He was adamant that they could own property and proceeded to show me a couple of brochures of Florida Gardens and Zen which are on the Colva/Benaulim road. A nice looking artist's impression of a 3 bed row house was 44 lakhs. How can they own it? Answer: They give him the money and he buys the property from the developer in his name. I said "Are you nuts or something?" got up and walked away.

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GoanGoan......here

Nick-H

Yep... that's a 'good' one

I wonder how many houses he's accumulated so far.....

goangoangone

He won't need many at that price before early retirement.

old man

Be very careful when buying at this present time we did everything by the book in 2005, five year x-visa,did well over 183 days required in the financial year,and are being investigated by Directorate of Enforcement together with many other British people. We were requisition to furnish all the answers within 15 days. We employed at Advocate 8500 rupees, that was 5 months ago and still have not heard what is happening with the FEM. Did you know that if you have an official letter you must KEEP THE ENVELOPE!!!!

Jamie11

you should have chin'd him

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such is life....