A Brief Guide To Power Of Attorney In NRI Property Transactions

Brief Guide To Power Of Attorney In NRI Property Transactions

Living abroad with a number of properties under your name in your home country can be a daunting prospect. It can be extremely frustrating work to keep track of every single property in your hometown while sitting in a different country. The legal and financial transactions can be a headache to take care of. In such a case, it becomes easy to work with the POA – power of attorney that helps in working up any sort of NRI property disputes.

Power Of Attorney –

It is a type of document that offers authority to another person as an agent or attorney from a person considered as principal or grantor. This allows the agent to work on behalf of the owner or grantor. The term attorney-in-fact is famous for an agent that works as per the contract drawn by the owner. For instance, if an NRI (grantor) has authority over the property but isn’t able to look after it then rights can be delegated to another person (attorney-in-fact) with limited rights.

When NRI favors a person with his/her POA then the authority is shifted to the person that works on the behalf of NRI. This allows them to:

  • Take decisions on behalf of the owner to accomplish a task.
  • Complete transactions to ensure that payments are timely done such as tax payment, and EMIs.

Real Estate in POA

There are several aspects when NRIs can take the help of POA in real estate such as:

  • Sell, exchange, mortgage, borrow, grant, collect rent, and lease.
  • Performing tasks such as company insurance, banks, deals, contracts, and bonds.
  • Disputes settlement and management.

Numerous Person POA

It is possible that the NRI can offer the chance of POA to more than one holder. This means that there will be a number of people involved in a transaction. However, it is suggested to only have one person associated with the NRI legal services India to simplify complex processes. The tasks can be divided up among individuals but have two people involved in POA. But only one person will be responsible to empower tasks on behalf of NRI.

POA Execution

It is best to do all the paperwork and documentation beforehand to guarantee the transfer of power on the name of relative or friend. It follows up different steps such as:

  1. It is best to get everything on paper even with relatives or friends. Hence, make sure to get the papers drafted to ensure that NRI property disputes can be handled easily. It is best to get things printed on Rs. 100 non-judicial stamp paper. This can help with legal issues in the future in case of any crisis.
  2. Make sure to have two witnesses and two representatives while visiting the Sub-Registrar’s Office.
  3. However, it is essential to have a valid identity proof for each person while visiting the office of Sub-Registrar’s Office along with photographs.
  4. The parties must submit their proof of fingerprints, photographs, and signatures at the Sub-Registrar’s office.
  5. Then collect the registered POA from the office once the formalities are over. It usually takes three to five days before it is available at Sub-Registrar’s Office.

POA Regulation

The power must be executed properly with the help of PoA paper as per the interpretation. The Property Dispute Lawyers consider all the rights offered to the person by NRI and interpretation is done so that no extra rules are created. A person has no authority to add on the “right to sell” or “right to Construct” if the contract mentions “right to lease” only.

It is essential for the representative to work as per the clauses mentioned in the contract by the principal. The scope is to work as per the authority and not to go beyond it. The NRI will not be held responsible or sued for any illegal activities done by representatives. However, if the fraud is proved to be done with the authority of NRI then they can be held responsible or arrested.

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The Power of Attorney is applicable for the immovable property that works in the favor of the non-resident in case of NRI property disputes. It is not possible to keep a watch on any illegal or unauthorized work done on your property. Hence, POA is essential to save yourself from any legal disputes that might tarnish your image in the market.

Author Bio

Amy Jones is a legal expert and working in Ahlawat & Associates. One of the top legal firms in India where you can discuss with experts about your legal problems.