FAQs for NRIs for applying for Power of Attorney (PoA) for selling a house in India
This article lists out the processes and frequently asked questions for NRIs looking to create a Power of Attorney for selling their house in India.
FAQs for NRIs for applying for Power of Attorney (PoA) for selling a house in India
Posted on 05 Aug 2024
Author: Sayan Sircar
7 mins read
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This article lists out the processes and frequently asked questions for NRIs looking to create a Power of Attorney for selling their house in India.
This article is a part of our detailed article series on property deals between an NRI seller and a resident Indian buyer. Ensure you have read the other parts here:
-
Complete Tax Guide for NRIs Selling Land in India
This article simplifies the process of selling land in India for NRIs, offering clear insights on how to manage TDS deductions, understand the differences between urban and rural agricultural land, and calculate capital gains tax.
-
Which are the important points to keep in mind when buying a house from an NRI seller?
The article lists out the important points and steps that a resident Indian buyer should keep in mind when purchasing property from an NRI seller.
-
How should NRIs sell property in India?
The article lists out the important points and steps an NRI property seller must keep in mind while selling property in India.
-
FAQs for NRIs for applying for Lower Deduction Certificate by filling Form 13
This article lists out the processes and frequently asked questions for NRIs looking to fill Form 13 for applying for Lower Deduction Certificate.
📚 Topics covered:
- What is an NRI Power of Attorney?
- What are the types of NRI Power of Attorney?
- Who can be the holder of Power Of Attorney for the property sale on the behalf of an NRI Seller?
- What kind of Power Of Attorney is needed for property deals in India when the owner is an NRI?
- How does a Power of Attorney aid NRIs in property affairs?
- How can NRIs execute a Power of Attorney in India?
- Is registration of Power of Attorney mandatory in India?
- How can an NRI revoke a Power of Attorney?
- What should NRIs keep in mind while executing a Power of Attorney?
- How can NRIs grant Power of Attorney from the U.S.?
- What are the steps involved in legalisation of Power of Attorney?
- What is the apostillisation process for Power of Attorney?
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What is an NRI Power of Attorney?
An NRI Power of Attorney (POA) is a legal document that grants authority to an individual to act on behalf of a Non-Residential Indian (NRI) in various matters, especially related to property, financial transactions, and legal affairs within India. It allows NRIs to manage their affairs efficiently from a distance by appointing a trusted representative.
What are the types of NRI Power of Attorney?
There are several types of NRI Power of Attorney: General Power of Attorney (GPA) grants broad powers to the attorney; Specific Power of Attorney restricts the agent’s authority to specific tasks; Property Power of Attorney is tailored for real estate transactions; Limited Power of Attorney confines the agent’s authority to specific duties; Durable Power of Attorney remains valid for the principal’s lifetime unless explicitly revoked.
Who can be the holder of Power Of Attorney for the property sale on the behalf of an NRI Seller?
The agent/broker engaged by the NRI or a close friend/family member can hold a Power Of Attorney for property deals in India on the behalf of an NRI seller.
What kind of Power Of Attorney is needed for property deals in India when the owner is an NRI?
The Power Of Attorney must be a Specific Power Of Attorney for that particular property in question and not a General Power Of Attorney (GPAs). GPAs for immovable property sales are illegal as per a 2011 Supreme Court judgement.
How does a Power of Attorney aid NRIs in property affairs?
A Power of Attorney helps NRIs in property affairs by allowing a trusted representative to make crucial property decisions, facilitate transactions, handle legal matters, respond to emergencies, and oversee property maintenance, ensuring the NRI’s interests are safeguarded.
How can NRIs execute a Power of Attorney in India?
NRIs can execute a Power of Attorney in India by visiting the Sub-Registrar’s office, drafting the POA on non-judicial stamp paper of Rs 100 value, and having it signed by two legal representatives and witnesses. It takes about 4-5 days for the POA to be finalized.
Is registration of Power of Attorney mandatory in India?
Registration of a Power of Attorney is not mandatory under the Indian Registration Act, 1908. However, if the POA is for the sale of immovable property, registration is required according to a Supreme Court ruling in 2022.
How can an NRI revoke a Power of Attorney?
An NRI can revoke a Power of Attorney by visiting the Sub-Registrar’s office with two witnesses. The POA can also be revoked if the principal is declared insolvent or lunatic. The process mirrors the original execution of the POA.
What should NRIs keep in mind while executing a Power of Attorney?
NRIs should remember that they don’t need to be physically present in India for POA execution. Registration can be done through the Indian embassy in their country of residence. They can use legalisation or apostillisation methods for registering POA outside India.
How can NRIs grant Power of Attorney from the U.S.?
NRIs in the U.S. can grant Power of Attorney by having the POA attested by the Indian Embassy or Indian consular offices, either in person or by mail. This ensures the POA is valid in India.
What are the steps involved in legalisation of Power of Attorney?
Legalisation involves notarising the POA through an authorized officer of the Indian Consulate/Embassy and getting it stamped within three months of receipt in India. The applicable stamp duty follows Section 2(17) Schedule-I of the Indian Stamp Act, 1899.
What is the apostillisation process for Power of Attorney?
Apostillisation, governed by the Hague Convention, 1961, requires an apostille certificate to verify the authenticity of the signatory. The deed must comply with Indian laws, including the Indian Registration Act, 1908, and the Power of Attorney Act, 1882. Stamp duty is levied upon the document’s receipt in India.
Related Articles
- Which are the important points to keep in mind when buying a house from an NRI seller?
- How should NRIs sell property in India?
- FAQs for NRIs for applying for Lower Deduction Certificate by filling Form 13
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