How Can NRI Use Power Of Attorney To Manage Real Estate Property in India

As an NRI, owning property in India can be both a valuable asset and a source of stress. The distance and lack of presence can make managing your real estate property challenging, but you can easily simplify the process. You can delegate the management to your trustee via POA or power of attorney for NRI. It’s not just NRIs that execute POAs. Many people in India do so too. With multiple assets, managing everything can become burdensome. Hence, POAs make it easy.

Let’s explore how you, as an NRI, can use power of attorney to manage your real estate while easily living abroad.

What is Power of Attorney?

A POA or power of attorney is a legal document that gives an agent (your trusted contact) the authority to act on your behalf. It can include making decisions, signing documents, and managing assets. There are four types of POAs, general, special, durable, and springing, each with a specific purpose.

Types of Power Of Attorney

1. General Power of Attorney (GPA) grants an agent broad powers to act on your behalf, such as managing property, handling finances, and making medical decisions.
2. Special Power of Attorney (SPA) grants an agent specific powers for selling property or signing legal documents.
3. Durable Power of Attorney (DPA) grants an agent the power to make decisions on your behalf, even if you become incapacitated.
4. Springing Power of Attorney (SPA) grants an agent power to act only under specific circumstances, like if you become incapacitated.

What is the role of a Power of Attorney in real estate?

There are several use cases of Power of Attorney in managing real estate.

Manage property remotely

You can grant someone power to effectively manage your property in India, such as paying bills, collecting rent, and making repairs.

Conduct real estate transactions

You can grant an agent power to buy or sell property on your behalf and take care of all the formalities that come with the process.

Handle legal matters

You can grant POA to an agent to handle legal matters related to your property, such as filing lawsuits or settling disputes.

Take care of the property in case of incapacitation

You can grant a trustee power to take care of your property if you cannot make decisions yourself, especially in a critical or life-threatening situation.

How to execute a POA if you are settled abroad?

There are two ways you can execute a power of attorney (POA) for managing your real estate property in India.

Legalization

It involves authenticating the signatures of the notary by the representative of the Indian Embassy. You don’t need to get the POA stamped at the time of execution, but you must do it within three months of receiving it in India. Also, You will have to pay stamp duty as per Indian laws.

Apostillisation

This process is used to prove that you executed the POA outside India. It involves getting a certificate that confirms and verifies the signature of the person who authenticated it. It follows the Hague Convention, 1961, but must comply with Indian laws. If you execute the POA abroad, you must also register it in India.

It’s important to note that you can appoint multiple POAs for different financial transactions in India. Still, appointing one POA for each transaction is advisable to avoid conflicts of interest. You also have the option to revoke the POA at any time.

How to execute a POA in India?

You can quickly get a power of attorney document executed by following these five easy steps:

• Get the POA drafted and typed on non-judicial stamp paper (value of Rs 100).
• Visit the Sub-registrar’s Office with a legal representative, two witnesses, and valid ID proofs.
• Submit a photocopy of the POA and an original copy.
• Provide signatures, photographs, and fingerprints at the Sub-registrar’s office.
• Collect the registered POA from the Sub-registrar’s Office in 3-5 days.

Final thoughts

A POA (power of attorney) for NRI can be an efficient way to manage your property while living overseas. However, you must ensure that there are no conflicts of interest and that you continuously comply with Indian laws.

Remember, you can revoke the POA at any time if you feel your agent is not acting up to your expectations.