Frequently Asked Questions

01How much do I need for a down payment?

The financial aspect is one of the main factors that dominate the real estate purchase process. People are confused about their ability to determine a specific amount to pay as a down payment and what percentage is appropriate for them. The down payment is the percentage that the customer pays out of the total amount, and the required down payment ranges from 5% to 10%. While it is always recommended to pay a higher down payment such as 20%. The higher the percentage of the down payment, the lower the value of the installments that are paid and the easier it is for you to pay them, and the lower the value of the interest that is increased in the case of installments. We always advise you to consult with your real estate broker and tell him the limits of the amount that you intend to pay as a down payment, and he will help you in getting an offer that matches your financial plans.

02Is it possible to negotiate the commission rate with the real estate agent?

In case you decide to benefit from the experts, whether a real estate consultant or agent, you should expect to pay a percentage of the money in exchange for the service that he will provide you with. It is commonly known that the commission is paid upon the closing of a sale or purchase transaction. Therefore, you should always ask about the commission amount at the beginning to avoid surprises at the end. Some companies can provide real estate consultancy and services without getting any commission from the buyer. There are always percentages ranging from the amount of commission that you will be charged and the percentage varies if you are the seller or the buyer. The commission rate can always be negotiated, especially in the initial stages of the service, and you can reach with your real estate advisor to a mutually satisfactory rate, whether he works individually or within a company. Usually, the commission rate ranges from 1.5% to 2.5%. But we always recommend that you abide by the prior agreement between you and your consultant.

03How long does it take to buy or sell a home?

Several factors determine how long the process of buying or selling real estate takes. The most important of these factors is the season in which you begin to search for a property or offer it for sale.
The real estate market, like other investments, is based on the principle of supply and demand. Real estate is on-demand in certain seasons of the year. It is not possible to ascertain a specific time as it can vary according to the circumstances of each season. You may find the right home for you within a week, or the search process can last for months.
But there are certainly some factors that can speed up your process:
You have to put a financial plan in advance. It should be clear and detailed before you start searching for real estate.
You have to specify your desires and needs in the house or property to concentrate on what you need and not get overwhelmed.
Set a time limit to make up your decision so that you do not waste time inspecting real estate, which increases your hesitation.
Do a market search before buying or selling and check the appropriate times to put up your property or search for a home that suits you.
Save yourself the time and hire a real estate expert

04What happens if I decided to back out of buying a house?

One of the situations that confuse all those who are about to buy or sell real estate is the question of whether the agreement can be reverted for any reason without incurring penal conditions.
In the current situation of the real estate market and the high competition among all projects and the advantages that each project can offer, the buyer may get confused after making the decision and resort to retracting the purchase. Also, the seller may get a better financial offer after agreeing with one of the buyers.
The simple answer to this question is yes, the seller or buyer can withdraw from the agreement. But there are two cases of cancellation by any of the parties. Before signing the contracts that do not put penal conditions on either party, but in referring is to the termination of the deal, the contracts may include some clauses that specify penalties for the party who breaches the contract and cancels the agreement.
Of course, you should increase your knowledge about the contract details and how to avoid mistakes in them to avoid disputes later. Here, we offer you this guide 6 key points that will help you avoid mistakes in real estate contracts.

05Do I need a real estate agent or consultant?

Many people are confused in deciding as many customers are thinking of avoiding the help of a real estate consultant or agent to reduce the material cost, whether for the seller or the buyer. Certainly, at this point, you should rely on your judgment of the situation. But we can help you explain the advantages and disadvantages of both options.
If you decide to rely entirely on yourself, you will save an amount of money without paying it to the real estate advisor, but on the other hand, the process of selling or buying a property may take much longer because you lack market experience. In addition, you can fall victim to any kind of fraud if you do not take precautions to protect yourself.
In case you resort to the assistance of a real estate agent or consultant, you will sacrifice an amount of money in exchange for a customized service that serves your benefits and needs, also, you will reach results faster. The real estate agent also provides you with guarantees that protect you from any manipulation. As mentioned before, you can negotiate from the beginning the commission rate and reach a percentage that is to your liking. We always advise you to deal with credible and experienced real estate agents and to stay away from individual brokers in case of the absence of guarantees or prior knowledge.

06What are the services that a real estate advisor can provide to me?

The services that the consultant or real estate agent can provide to you are varied, making it easier for you to get all the services you need from one reliable place.
Services vary to include:
Free consultations (you can get it easily by simply communicating directly with the real estate office and asking about what you want)
Searching for real estate and submitting offers (here you can request him to do market research for what suits your needs and start meeting with you to inspect the properties and reach a final deal)
Legal services and closing of contracts (the real estate advisor helps you understand the legal procedures for contracts and helps you close your deal correctly and legally)
Finishing and home decoration services (if you want to receive assistance in finishing your home, you can certainly use them to take over this task as well).

07What is real estate investment?

At present, with the boom in real estate, the ability to make profits, and stability in the face of crises, many people are wondering about what real estate investment is.
Simply put, real estate investment is a sector that focuses primarily on making a profit and increasing the financial return. Real estate investment is limited to buying and selling and establishing investment projects only. The real estate investor seeks to spend appropriate capital to achieve material returns without interfering in the real estate development process. The investment is often in a plot of land or real estate for a specific period to buy and sell and then moving to invest in other units or real estate.
If you want to increase your knowledge of real estate, you can increase your knowledge of The Most Popular Real Estate Types & Units In The Egyptian Market.

08Is real estate investment guaranteed?

Real estate has proven over the past decades that it is one of the largest and strongest sectors that can overcome crises and maintain its financial value in addition to achieving stable profits. It is always advised to consider starting a real estate investment even for non-professional individuals. It is a sector that allows you to start your investment and gives you the ability to follow it. One of the biggest positive elements of real estate is that it guarantees you long-term financial profits. The sooner you start your investment, the faster you can get the desired profit.

09What are the types of real estate investments?

If you are considering real estate investment, you can choose between many types according to your preferences and your ability to pursue your investment. Choose from: Residential real estate (the most popular type) Commercial real estate (whether shops or residential buildings designated for investment) Administrative and medical (one of the most requested investments for specialists) Plots of land The new administrative capital is considered one of the largest national projects supervised by the government in cooperation with the private sector. Part of the vision of the New Administrative Capital is to become a center for investments, so we advise you to browse this guide your guide to investing in the New Administrative Capital.

10Who is a Non-Resident Indian (NRI)?

According to the Foreign Exchange Management Act (FEMA) of 1999, an Indian Citizen who stays abroad for employment/business or whose stay in India is less than 182 days in the previous financial year.

11Who is a Person of Indian Origin (PIO)?

PIO is a person of Indian origin whose predecessors were born in India; s/he does not have Indian citizenship but has an Indian ancestry.Person of Indian Origin means a foreign citizen (except a national from Pakistan, Afghanistan, Bangladesh, China, Iran, Bhutan, Sri Lanka and/or Nepal) who:

1. has had Indian Passport at any time
2. S/he, parents or grandparents were Indian citizens and resided in India as defined by the Government of India Act 1935.
3. is a spouse of an Indian citizen or a PIO

12Can an NRI acquire/buy immovable residential property in India?

An NRI can buy any number of residential or commercial properties in India except Plantations, agricultural Land and farmhouses. According to the RBI guide lines, an NRI/PIO can also acquire a residential property as a gift from an Indian, NRI/PIO. S/he can also inherit a residential property from a person who is a resident of India as per the Provisions of Section 6(5) of the FEMA, 1999.

13Do I need to submit any forms or returns to the Reserve Bank following the acquisition of residential or commercial property under the general permission?


14Is it possible to include the name of a foreign national, who is not of Indian origin, as a co-owner of a residential or commercial property acquired by an NRI/PIO?


15Do NRIs/ PIO’s need to submit any documents with RBI when purchasing immovable residential property in India?

As per FEMA and RBI guidelines the NRI’s or PIO’s are not required take any special permission or file a document to purchase an immovable residential in India.

16How many residential properties can be purchased by an NRI/PIO?

An NRI/PIO can buy any number of residential/commercial properties. There is no restriction on the number of properties, however, plantations, agricultural Land and farmhouses are restricted to an NRI/PIO.

17How can an NRI transfer/sell his residential property?

An NRI can sell his or her property in India to an Indian resident/ NRI / PIO.

18Can a PIO transfer/sell his residential property?

Under general permission a PIO can sell his or her residential property in India to an Indian citizen only.

19Can an NRI/PIO transfer his residential property by way of gift?

Yes. An NRI/PIO can transfer their residential property in India by way of a gift to an Indian resident/NRI/PIO.

20What mode of payment can an NRI/PIO make to purchase a residential property in India?

Under the guideline of RBI and FEMA, an NRI/PIO may purchase a residential property in India by funds remitted to India through normal banking channels or funds held in his/her NRE/FCNR (B)NRO accounts. The payment has to be made in Indian currency through any of the above mentioned ways.

21Can NRIs obtain loans for acquisition of a house /flat for residential purpose from authorised dealers/ financial institutions providing housing finance?

RBI has given directives and general permission to the banks, financial institutions and authorised dealers to provide loans to the NRI/PIO for acquiring a residential property for personal use but subject to certain conditions. The purpose of the loan, margin money and the quantum of loan will be at par with those applicable to housing loans to residents. Repayment of loan should be made within a period of 15 years out of inward remittances or out of funds held in the investors’ NRE/FCNR/NRO accounts. The repayment tenure has been increased to 25 years in current times due to the increase in Interest rates.

22What are the documents required to be submitted by an NRI while applying for a home loan?

An NRI needs to submit the following documents:

1. A copy of passport and visa.
2. A copy of the appointment letter and contract.
3. A copy of the labour card/identity card (translated in English duly countersigned by the consulate) if employed in the Middle East.
4. Salary certificate (in English) specifying name, date of joining, designation and salary details.
5. Bank statements for the last six months-both domestic (NRE/NRO/FCNR) and international Contract slip with income details in case employed in the merchant navy.
6. Copy of local income tax returns filed in the country of residence.
7. Loan eligibility can be enhanced by taking a joint loan with relatives. However, for credit reasons banks allow only a select list of relatives to be joint owners of the property.

23Can NRIs obtain loans for acquisition of a house /flat for residential purpose from authorised dealers/ financial institutions providing housing finance?

RBI has given directives and general permission to the banks, financial institutions and authorised dealers to provide loans to the NRI/PIO for acquiring a residential property for personal use but subject to certain conditions. The purpose of the loan, margin money and the quantum of loan will be at par with those applicable to housing loans to residents. Repayment of loan should be made within a period of 15 years out of inward remittances or out of funds held in the investors’ NRE/FCNR/NRO accounts. The repayment tenure has been increased to 25 years in current times due to the increase in Interest rates.

24Can an NRI give their residential property on rent if not required for immediate use?

Reserve Bank of India has given permission to the NRI’s to let out any immovable property in India on rent. The rental income or proceeds of any investment of such income are eligible for repatriation.

25Can an NRI/PIO repatriate the proceeds in case the sale proceeds were deposited in the NRO account?

NRI/PIO may repatriate up to US $ 1 million per financial year (April-March) from their NRO account which would also include the sale proceeds of immovable property. There is no lock in period for sale of immovable property and repatriation of sale proceeds outside India.

26Can an NRI get a home loan to buy a property in India?

Yes. An NRI can avail home loan to buy commercial or residential property in India.

27Which banks give home loans to NRI’s?

RBI has directed nationalized/private Banks and NBFC to provide Home Loan to the NRI’s.

28How can an NRI ensure that a project is legitimate when investing in a property in India?

There are various points that an NRI should remember while investing in a property:

1. It is important to check the RERA registration of the seller/developer.
2. Check project approvals and they can be verified from the corporation or the sanctioning authority.
3. Ownership document should be confirmed from the concerned department.
4. Sale deed, No Objection Certificate (NOC) from builder/developer, NOC from banks, Building Plan approvals, completion certificate should be checked and verified.

What tax do NRI’s have to pay on their rental income?

An NRI has to pay tax in the country from where the income is being generated but the tax is not payable on the entire rental income however there are some deductions an NRI can avail.

1. Standard deduction at the rate of 30% on the taxable value.
2. Taxes are to be paid to the municipal authority with respect to the concerned rented property.

29Is it permissible for a foreign national who is not of Indian origin and resides outside India to purchase immovable property within India?


30Is it possible for a foreign national who is not of Indian origin to lease residential property in India?

Yes. A foreign national of non-Indian origin including a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Hong Kong or Macau or Iran or Nepal or Bhutan may acquire only residential accommodation on lease, not exceeding five years for which he/she does not require prior permission of Reserve Bank of India.

31Is it possible for a foreign national who resides outside India and is not of Indian origin to receive residential or commercial property in India as a gift?


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