Power of Attorney - uses and benefits in India -

Power of Attorney – uses and benefits in India

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Uses and Benefits of having the power of attorney

For NRIs living across various parts of the world, it is neither easy nor practical to travel to India every time they buy or sell a property or to conduct many other financial or legal transactions that require their physical appearance in India. And this is where a POA or GPA (General Power of Attorney) helps.

What is a Power of Attorney (POA)?

A Power of Attorney (POA) is a legal instrument whereby one person gives another person the authority to be his/her representative and to make binding legal and financial decisions on his/her behalf. Technically, it is defined as an authority whereby one is set in the stead or place of another to act for him.

How POA essential to NRIs in making Real Estate Investments in India?

A Power of Attorney entitles an NRI to empower his or her relatives/friends/family members in India to legally represent them and conduct all formalities associated to the purchase or sale transaction on the NRI’s behalf so that he or she does not have to visit or be physically present in India to conduct the transaction.

Here are few of the significant real estate transactions that can be done through POA on your behalf:

Purchasing Property: To execute all agreements and contracts with the real estate builder, register your land or property and apply for a loan for that property in India.

Renting Out Your Property: To rent out your property in India and also collect rent on your behalf.

Selling Your Property: The authority to sell your property and negotiate the sale cost. It is crucial to note that this right to sell property can be given only if you explicitly declare accurately in the GPA and can be excluded entirely from the purview of the General POA if you do not want to grant the same authority.

Applying for a Home Loan in India: As the NRIs are not based in India, the banks require a representative in place of the NRI to deal with, and a POA can be used by NRIs to allow their relatives in India to represent them.

Any Other Matter About Your Property: To manage, compromise, settle and resolve all matters concerning your property such as paying property and income tax on your behalf, maintaining your property in India, and any other such property related matters.

Types of Power of Attorney

There are two types of POA: General Power of Attorney and Special or Specific Power of Attorney.

General Power of Attorney: This authorizes the grantor (the NRI) to allow the appointee (the NRIs relative/friend in India) with the rights to carry out all legal actions on the former’s behalf without limiting it to a particular transaction or act and renders the appointee broad powers to work on behalf of the grantor (the NRI).

Special or Specific Power of Attorney: This kind of POA restricts the power of the appointee to act just on a specific kind of transaction or to carry out a particular legal transaction for the grantor (mostly just one / single activity). This is the more normally used format in India for real estate transactions.

As a law firm dedicated to property legal advice, vakeelno1 offers its clients a free legal advice for all matters related to property disputes – Power of Attorney being a vital component of the process.