Travelling back and forth to India and their country of residence can be difficult for NRI property buyers. That’s why provisions have been made to facilitate the procedure for NRIs to buy property in India. One of them is the PoA (Power of Attorney).
What is a Power of Attorney?
Granting someone Power of Attorney authorises them to make decisions and sign documents on your behalf. Since they live in India, they save you the trouble of having to be physically present. As your General Power of Attorney (GPA) needs to act in your best interests, you will need to appoint someone whom you trust fully. A PoA is helpful to follow up on the construction status, physically examine the property or land and be present for the needed paperwork. As being physically present at all times is difficult for an NRI buying property in India, POA status can save you from a lot of trouble.
There are two main kinds of PoAs based on the scope of their duties:
1. Special PoA:
Has only a restricted range of powers and is formed solely for a specific type of transaction.
2. General PoA:
Can perform multiple functions on your behalf and normally does not have any type of restrictions on their powers.
Types of Functions Performed by the PoA:
For an NRI buying property in India, PoA status can be suitable for a variety of functions. Having a reliable GPA can considerably decrease time and effort in the process for NRI to buy property in India.
For real estate investments, a person who has a Power of Attorney can:
• Sell, lease, mortgage, exchange and collect rent on your behalf.
• Manage and settle any property and land disputes which occur.
• Sign any documents needed by banks and insurance companies for the buying of your property in India and also enter into contracts and deal with bonds.
• Your PoA holder can also find tenants for your property and further collect rent from them on your behalf.
How to Grant General Power of Attorney Status?
Registering an individual as your GPA holder is a very simple process. You can register a person as your GPA either through an Indian consulate or Indian embassy in India or your country of residence.
How to Process GPA documents in outside of India?
Most of the Indian embassies and consulates around the world have an identical procedure for attesting GPA documents. One of the significant differences between registering a GPA in India and abroad is that you don’t need a stamp paper when you are registering at an embassy or consulate.
Documents Required during the Process:
• A plain piece of paper with specify terms and conditions of the agreement typed. The document should mention all the powers you are granting to the person and in what areas they can act on your behalf. This document must be signed only in the presence of a Consular officer.
• Original passport along with photocopies of all pages that have been filled in.
• 2 Passport size photographs
• Identity proof of witnesses
• Address proof of your place of residence
• Evidence of legal validity of country of residence (such as a visa)
How to Process GPA documents in India?
To register a GPA in India, you require to print all your terms and conditions on a stamp paper so the Sub-Registrar can verify it. If an NRI is not able to be physically present in India at the time of processing of the GPA documents, you can get your documents attested from an officer at the Indian consulate and later send it to India. Your GPA document can then get it registered in India.
• Two passport size photographs
• Two witnesses and their identity proofs
• Proof of address (original plus copies)
• Proof of identity (original plus copies)
• Terms and conditions of the agreement on stamp paper
Make sure that you keep the duly attested GPA documents safe as this is needed to show the validity of all transactions as well as decisions made on your behalf.