For NRIs the use of power of attorney (POA) is very important for any kinds of real estate transaction. It is observed that the NRIs use power of attorney as an instrument for making any kinds of real estate transaction in India. The role of power of attorney is very important in helping the NRIs to sell or buy all kinds of real estate properties in India. For the NRIs in many times it is quite difficult to come in India and sell or buy real estate properties and to solve this kind of problem the concept of power of attorney exists. Through power of attorney the NRIs can enter the holder of the properties in the process of transaction while selling the real estate properties. Through power of attorney the NRIs authorizes the holder to take the necessary decisions in behalf of the actual owner of the property while selling or buying the property. If you are a NRIs and want to use any kinds of real estate transaction by appointing a power of attorney then this blog is very important for you. Because in this blog we will discuss how the NRIs can use power of attorney for any kinds of real estate transaction in India.
Through a written formal application one can appoint his/her reliable individual name as power of attorney to act in behalf of the actual owner while selling or buying a real estate property. The appointment of power of attorney make the process of buying or selling real estate properties in India very easy for the NRIs. Here the NRIs is considered as a principal/donor/grantor as he/she gives the authority to act behalf on his/her. The person whom the authority is given is known as an attorney/agent/done. There are mainly three types of power of attorney, such as
In real estate sector the POA can be used for various purpose, such as
In many cases the NRIs have not the time to travel in their country of origin (India) and manage their properties especially in the covid-19 situation. To overcome this situation the NRIs use power of attorney as an instrument to manage their properties in India like conducting real estate business in India which includes sale, purchase, renting, leasing, mortgaging, dispute management etc.
The draft of the content of POA can be prepare by the NRI himself/herself but it is better to prepare it with the help of a legal expert. You should require to incorporate some details in the content of POA, such as your details, your signature, the details of your representative’s, purpose of POA, validity period of POA, validated by local authorities etc.
Depending on your location and availability you could get the POA executed in India but if you are not available and reside outside of India then also you could get the POA executed through Indian embassy of the country of your current residence.
While you are in India want to execution of POA in India then you can do it in local sub-registrar’s office. You should note that although the Indian Registration Act, 1908, it is not compulsory for a POA to be registered but Supreme Court, in 2011, ruled that if it is executed for the sale of real estate property then in this case the registration of POA is compulsory.
When a NRI living abroad and want to sell or buy real estate properties in India then he/she has two ways to appoint a power of attorney, such as
The POA is a good instrument to buy or sell properties in India for NRIs. But before appointing someone for POA you should be mentally prepared well and choose a reliable person. You also decide the types of POA very carefully because each kinds of POA have some advantages and disadvantages.