NRI issued Power of Attorney from abroad - Is it legal in India?
Check to ensure legality of Power of Attorney document when buying property
on the basis of NRI issued Power of Attorney document
NRIs who are unable to be present in India to complete the property registration process, generally opt to give a Power of Attorney to a trusted Indian resident to act on their behalf to sell their Indian property. Any property transaction through Power of Attorney [POA] where the POA is executed by a non-resident should be carefully examined by buyers to ensure that the POA meets the required guidelines and cannot be challenged at some point of time to render the sale invalid. In case there are errors in the POA they can result in the sale being declared as Null & Void. Wherever possible buyers should insist on the actual owner executing the sale documents in India, however sometimes this is not possible and POA is the only route available. In such circumstances, here are a few points buyers should take into consideration: Why is the NRI owner not present? This should be mentioned in the POA as the reason for executing the POA to sell their property. POA document should mention the relationship between the NRI and the POA holder giving clear details of identification of both parties. The non-resident status of the NRI should be clearly mentioned. Buyers should issue payment in legal format in the name of the actual owner of the property and not in the name of the POA holder. [NRIs should consult a lawyer when preparing property related POA document to protect their assets] For a POA signed abroad for property transactions in India, there is a requirement that the POA be attested by the Indian Consular office abroad. The Consular Official will after verification of IDs stamp the POA with the Consulate Seal. Registrars in India will recognize the Indian Consulate Seal. Simply getting a POA notarized abroad and NOT attested by Indian Consulate may render the POA invalid. The only way for NRIs to avoid getting POA attested by Indian Consulate is to execute the POA when they are physically present in India. On receiving the POA document after it has be executed and attested by the Indian Consulate, the Indian resident should within three months complete the POA registration process in India. Registration is done at the Sub-Registrar Office. In some States registration is also done at the Sub Divisional Magistrate office. For a POA document to be legally valid in India, Registration of the document is very important. Courts may not even hear a disputed document case if the document in question was not registered.
Disclaimer: Information provided is for general knowledge only and should not be deemed to be professional advice. For professional advice kindly consult a professional
accountant, immigration advisor or the Indian consulate. Rules and regulations do change from time to time. Please note that in case of any variation between what has
been stated on this website and the relevant Act, Rules, Regulations, Policy Statements etc. the latter shall prevail.
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NRI issued Power of Attorney
from abroad - Is it legal in
India?
Check to ensure legality of Power of
Attorney document when buying
property on the basis of NRI issued
Power of Attorney document
NRIs who are unable to be present in India to complete the property registration process, generally opt to give a Power of Attorney to a trusted Indian resident to act on their behalf to sell their Indian property. Any property transaction through Power of Attorney [POA] where the POA is executed by a non-resident should be carefully examined by buyers to ensure that the POA meets the required guidelines and cannot be challenged at some point of time to render the sale invalid. In case there are errors in the POA they can result in the sale being declared as Null & Void. Wherever possible buyers should insist on the actual owner executing the sale documents in India, however sometimes this is not possible and POA is the only route available. In such circumstances, here are a few points buyers should take into consideration: Why is the NRI owner not present? This should be mentioned in the POA as the reason for executing the POA to sell their property. POA document should mention the relationship between the NRI and the POA holder giving clear details of identification of both parties. The non-resident status of the NRI should be clearly mentioned. Buyers should issue payment in legal format in the name of the actual owner of the property and not in the name of the POA holder. [NRIs should consult a lawyer when preparing property related POA document to protect their assets] For a POA signed abroad for property transactions in India, there is a requirement that the POA be attested by the Indian Consular office abroad. The Consular Official will after verification of IDs stamp the POA with the Consulate Seal. Registrars in India will recognize the Indian Consulate Seal. Simply getting a POA notarized abroad and NOT attested by Indian Consulate may render the POA invalid. The only way for NRIs to avoid getting POA attested by Indian Consulate is to execute the POA when they are physically present in India. On receiving the POA document after it has be executed and attested by the Indian Consulate, the Indian resident should within three months complete the POA registration process in India. Registration is done at the Sub-Registrar Office. In some States registration is also done at the Sub Divisional Magistrate office. For a POA document to be legally valid in India, Registration of the document is very important. Courts may not even hear a disputed document case if the document in question was not registered.
