A property transaction through Power of Attorney executed by NRI calls for extra checks/scrutiny. A sale deed can be declared NULL and VOID because of a small mistake or error in the execution of Power of Attorney by NRI. Sometimes these errors/mistakes are intentional and most of the times unintentional. In recent past, i came across multiple cases wherein a property transaction was challenged based on error/mistake in the execution of Power of Attorney (POA) by NRI. In many cases, the status of NRI is being concealed by his lawyer/CA in POA to avoid TDS. An NRI executing POA in India cannot declare his/her status as Resident Indian. As i keep highlighting that a buyer or seller in India should mention the status of another party in sale deed to avoid any future tax disputes. A case of the false declaration in sale deed may not put the onus of concealment of facts on the resident Indian in the property transaction.
My general observation is that Resident Indian’s are not aware of do’s and don’t of Power of Attorney executed by NRI. Even professional help does not help in most of the cases due to lack of knowledge. A Power of Attorney is issued by NRI if he/she cannot be physically present in India for the execution of property transaction. As a buyer or seller, you should insist on the physical presence of NRI Buyer/Seller in India for sale deed. It will avoid a lot of future hassles. The risk is HIGH if the buyer is Resident Indian, and Seller is NRI, who is represented by Power of Attorney holder. In this post, we will discuss this particular scenario for simplicity purpose. Though it is equally important if a seller is Resident Indian, and Power of Attorney holder represents the NRI Buyer. Reason being, it is important to trace money trail from NRI buyer i.e. whether money is being properly channeled for the property transaction. Let’s check important points or Do’s and Dont’s by Resident Indian Buyer if the transaction is through Power of Attorney by NRI.
Reason for Execution of Power of Attorney
As i mentioned and being candid about my opinion. A resident Indian buyer should AVOID property transaction through Power of Attorney holder of an NRI. The best case scenario is the presence of an NRI seller in India for execution of sale deed. Sometimes the circumstances do not permit so a buyer you should check the reason for the execution of Power of Attorney. The reason should be reasonable and logical. If the buyer is convinced with the reasoning, then he should insist that NRI Seller should include this particular reason, in Power of Attorney. In short, the purpose/reason for the execution of a power of attorney should be clearly mentioned in the Power of Attorney.
Process to Execute Power of Attorney
The most critical step is to check whether the Power of Attorney is executed as per the laid down process. It’s a 2 step process i.e. attestation of POA at Indian Consulate/Embassy and the registration of same in India. Attestation of POA is required even if the seller is not an NRI i.e. not completed 180 days outside India. On the other hand, if NRI executes POA on Indian Soil then attestation is not required. In short, a POA executed on foreign soil irrespective of the status of a seller require attestation at Indian Consulate/Embassy. The registration process in India follows it. Let me highlight steps/checks for a buyer.
Step1: NRI seller creates two copies of Power of Attorney with detailed terms and conditions. As a buyer, you should go through each and every clause carefully to understand the content.
Step 2: Check whether the POA is signed by two witnesses present in the country of residence of a seller.
Step 3: Check whether the witnesses were physically present in Indian Consulate/Embassy at the time of signature or not. If they were not physically present, then their signatures should be attested by the Local Notary.
Step 4: The POA should be attested by the Indian Consulate/Embassy.
Step 5: The Attested POA should be registered in the India by the resident Indian i.e. POA holder. The registration process in India should be completed within three months from the date of execution of POA. The POA can be registered in SDM (Sub Divisional Magistrate) office or Sub-Registrar Office. The rule may vary from state to state.
The relation between the NRI and POA holder should be mentioned in the POA. Preferably the details of ID proof of a POA holder issued by Indian Govt should be specified in the POA. The buyer retains the original copy of Power of Attorney for future reference.
Also, note that in some cases POA holder simply notarize the POA in India instead of registering it in SDM or Sub-registrar office. A “Notarized POA” is not the same as “Registered POA”. A notarized POA is legally not valid in India. A POA executed by NRI on foreign soil should be registered in SDM or Sub-Registrar office.
Payment to NRI Seller
In a recent case, i observed that buyer was cheated by Power of Attorney holder of an NRI Seller. It’s a misconception that payment towards property transaction should be transferred to POA holder. Please understand that Power of Attorney holder is only a representative of an NRI seller. The resident Indian buyer should make payment only to the NRI seller in his her NRE/NRO account. An NRI seller can authorize POA holder to accept payment on his behalf but cannot authorize payment to POA holder. Even if NRI seller authorizes POA holder to receive direct payment, the buyer should avoid such property transactions. It may land a buyer in tax trouble.
In the case of multiple NRI sellers, the payment should be transferred in the proportion of ownership in the property to each seller. In another case, one of my clients was cheated by NRI Seller. NRI couple jointly held the property. There was a dispute between husband and wife & my client was not aware of same. NRI husband insisted on transferring 100% consideration value in his account. After the deal had been done, the wife of a seller filed a case of cheating and fraud by his husband. Therefore, all the payment should be made in the proportion of ownership in the property. Each of the sellers should execute separate Power of Attorney.
TDS u/s 195
In one of the case, my client received notice for not deducting TDS u/s 195. In my post, How to deduct TDS on NRI u/s 195? i explained this in detail. In this case, the transaction was completed by POA holder. The POA holder told my client that as she (POA holder) is resident Indian therefore relevant TDS will be 1% u/s 194IA. Again i would like to clarify that POA holder is only a representative of NRI Seller. The TDS will be deducted u/s 195 in the case of NRI seller. The only exception is if NRI seller produces NIL or Lower Tax deduction certificate that i explained in my post How NRI’s can lower TDS on property sale?.
Indemnity Clause
Lastly, each property transaction is unique with multiple permutations and combinations. Therefore, a buyer can safeguard his/her financial interests by including a blanket indemnity clause in the sale deed. To avoid being caught on the wrong side also ensure that sale deed clauses are in concurrence with the terms and conditions of the POA. It will eliminate any possibility of legal/tax hassles.
Concluding Remarks: If you are buying/selling property from NRI then it is advisable to seek professional help to avoid any unpleasant surprises in future. The rules and regulations governing such transactions are bit complicated, especially on the taxation front. Always remember that Indian Law or Tax Authorities will not have any jurisdiction on the NRI residing abroad. On the other hand, a buyer who is resident Indian cannot escape the Indian Law/Tax Authorities. Moreover, the 100% onus of legal/tax compliance rests with the Resident Indian buyer.
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Dear sir
I am staying in Japan from 2 years. I have been transferred on visa called inter company transfer for 3 years by my Indian company. I had booked a flat before coming here and applied for loan. Loan got sanctioned and came here by giving General power attorney to my father for future transactions.
Is it possible for my father to do registration of my flat on my behalf. or it may create some problem. I will be returning back in 2016 May to India.
Pls suggest
You may issue SPA to your father by following the process as i shared in the post. You will not face any problem in future. Preferably, you should be present physically for the registration.
Dear Sir,
I am buying flat in bangalore with below process.
Seller staying in canada & i am in bangalore
owner of flat is husband & wife
now process of registration is like below
i have sent courier of final sale deed to owner canada
both owner signed with indian consulate stamp sent me back
now for presenting sale deed in Sub registrar office owner given spoa to his friend in bangalore who will only present sale deed in registrar office,that spoa will be adjudicated but not registered,
let me know if above process is ok
payment will be made of owner name indian bank account and
Your query is not clear to me. As i understand two documents are signed i.e. sale deed and SPOA. SPOA will be adjudicated but Sale deed will not be registered.If this is the case then what the objective of adjudication of SPOA. At first place sale deed cannot be signed abroad. It has to be signed and registered in Sub Registrar office. Please share more details.
Sir sale deed will be registered in Bangalore…
but for present that sale deed for registration owner given spoa to his friend
Now spoa will be adjudicated in Bangalore …
Sale deed will be signed with both owners in Indian consulate n stamped with Indian consulate in Canada….
So here owner giving spoa only to present sale deed in registration office ..
Thanks & regard
Dhanan
There is some confusion. Sale deed will not be signed by the owners. They will only sign SPOA in Canada. The sale deed will be signed by you and SPOA holder in bangalore sub registrar office.
Dearest Sir,
Thank you for taking the time to writing this insightful article.
I am selling a commercial property (small convenience shop) as NRI. We have found a buyer at okay price. We have tried word of mouth, online on 99 acres and 1 or 2 real estate agents, but are there any other methods for better price on sale?
Furthermore, with regards to paying income tax, am I correct in saying that 20% TDS is collected on the long term capital gains. e.g. if property bought at Rs40,000 and sold for Rs100,000, the TDS will be calculated on the difference between the buying and selling price. so on Rs60,000?
Also, the owner of the property has been NRI for over 15 years but when making PAN card has an indian address, will this make a difference when coming to sale?
I thank you for your time.
Kind regards,
Sagar
Sagar
If the property valuation from various sources is within range of 10% then mean of the same is fair value of the property. TDS is applicable on total consideration value i.e. 1 lac (in the example shared by you). PAN has no direct correlation with TDS even if PAN has Indian Address. The residency status is NRI therefore TDS of 20.60% will be applicable.
Thank you for your response. The PAN was relating to sale documents required. Will it make difference if address on PAN and passport is different.
An address on PAN and Passport can be different. On all the agreements you should put current and permanent address of the seller. If both are same then mention it in agreement.
Hi Nitin Ji,
I am an NRI and purchased a flat in India. I and my wife made one of my friend POA. I attested the POA at Indian embassy and sent to India to my friend. He notarized the same and register the flat on our behalf in registrar office but my friend didn’t register the POA in registrar office before registering my flat. So my question is the registration of my flat is now illegal?
Yes. As i mentioned in my post that POA has to be registered in SDM office then only it is legally valid in India.
Thank You Nitin Ji, for your reply.
Please advise.
1) how can I rectify this mistake?
2) In this rectification process can I directly involved and by pass my POA?
3) Is this not SDM office responsibility to tell buyer that your POA is not registered and only notarized Or they shouldn’t accept such POA at the time of flat registration?
1. The POA should be registered within 3 months. If this period is over then it cannot be rectified.
2. No
3. The registration is done based on documents presented for registration. The sub registrar office is not responsible to check the authenticity of the same.
Thank You Nitin Ji for your advise. I have further queries.
The situation is My Flat registration was executed with the POA document which was only Notarized (Not Registered) so as mentioned in the post this Flat Registration is illegal.
Now It has been 1 Year since my Flat Registration was done and I haven’t took the posession of my flat yet as it is still under construction and may Finish Next Month.
1) Please let me know in this case how can I convert my Flat registration document to legal document Or I have to do the Fresh Registration of my flat?
2) Also please let me know if adjudicated POA is legal for Flat Registration if we don’t Register the POA?
1. As i have not seen your documents therefore cannot comment. I suggest to hire a local property lawyer who can go through the documents and suggest
2. In case of NRI, adjudication will not suffice. It has to be registered in India as i explained in my post.
Hello Nitin Ji,
I would like to take your valuable opinion on below case before I go to purchase the property:
I’m looking to purchase a flat in Pune with home loan from bank. Flat is owned by two brothers. One brother is NRI while other one is Indian resident. Owners purchased flat around 2.5 years before. NRI brother will not be coming to India for transaction and is going to make his brother (co-owner) as his POA and wants all the money to transfer to his brother’s (co-owner) bank account. He is ready to give it in written to handover money to his brother (co-owner). As per estate agent (broker), in this case only Indian resident brother will have to pay tax on entire amount and NRI brother will not have to pay any tax. Clearly NRI brother is trying to save tax by giving all money to his Indian brother but he can easily get the money from his brother later on.
1. Is it legal to save tax in such way?
2. Will any bank allow loan disbursement on the name of only one brother?
3. In case of any mistrust between both brothers after sales deed, is there any possibility of problems for me?
4. What problems I may have to face in this case? What precautions I should take before going ahead?
Please advise.
Thank you
1. No
2. No
3. Yes
4. Please check my following post. In this post i have explained in detail the possible issues.
https://www.nitinbhatia.in/real-estate/nri-property-mistakes-resident-indian-buyer-avoid/
Dear Sir,
I am foreign citizen with PIO card and my wife is also the same (PIO). We jointly own the flat in India and I want to sell it. For sale transaction we both can not travel to India. So to complete the sell transaction my wife needs to give POA to me. What kind of POA do I need and where does it need to be attested or registered ?
Please go through the post on this page. All the queries are answered in my post.
Dear sir
We had a poa from America and want to get it stamped in SDm office.
Agents are saying it is stamping only and nothing like registration exist for POA.
Is it true.
Also we are based out of Delhi while property is in Gurgaon. Please share where should we get POA registered.
We have address proof of Delhi.
Please guide.
I am not sure what is meant by stamping. A stamp with signature of SDM is registration and they will keep a copy in their record. It should be registered in Delhi i.e. place of residence of POA holder.
Dear sir missed to add that POA is notarized abroad as person is on tourist visa.
Will SDM office stamp an notarized POA.
Please guide sir.
Again i am not sure what is meant by notarized abroad. As i shared in my post that it should be attested by Indian Consulate/Embassy abroad.
Manoj P modi
Nitin Bhai … Will you be able to please explain the following
” adjudication was not done within 2 months of execution of the POA. ”
The POA was notarised in UK and all the signatures including the POA holder notarised and signed within 2 months.
Thanks in advance.
You have not mentioned whether the POA/SPOA is registered in India or not. Also the purpose for which POA was executed. Lastly, who has put this comment/remark that “adjudication was not done within 2 months of execution of the POA.”
Dear Sir,
Please advise that Nri has sent a NOTARIZED SPOA to his mother without getting it endorsed by Indian Embassy in AMERICA for gifting property to herself. This is to avoid tds taxation u/s 195. Is this SPOA Valid.
Thanks
SPOA is NOT valid in India.
The Spoa has been duly registered at sdm office in delhi and based on this the gift deed has been registered at sub registrar office.
The SDM or Sub registrar office does not validate or certify the compliance and content of the documents. In my opinion, SPOA and subsequent registration at SDM office and gift deed are legally Null and Void because the base document i.e. SPOA is not endorsed by the Indian Embassy or Consulate that is MUST.
I have entered into house purchase agreement with seller in india. Owner is survived by 2 sons and 1 daughter. One of the son is working in Singapore. To execute the Sale agreement by the owner and 3 children, As the person staying in Singapore couldn’t able execute the sale agreement, he has to give Special POA in favour of his mother in india. How to get the SPOA from the person staying in Singapore. Please guide me.
Please go through my post on this page. I have explained the process in detail.
Sir,
I have bought a joint property (husband and wife).
husband is NRI gave POA(GPA for only this property) to wife.
GPA is attested/validated by district registrar.
the original GPA was retained by registrar while registring the sale of deed of property.
as a buyer do i have the original GPA with me if i have to sell the property in future?
Thanks in advance.
You need to check the reason why the original is retained by the sub registrar. You may demand the same from sub registrar office. Alternatively you can demand an acknowledgement from sub registrar that original GPA is retained by them and you can apply for a certified copy issued from sub registrar office. An Acknowledgement and certified copy will suffice in future.
Dear Sir,
I am looking to acquire a resale property from an NRI couple. They are arranging for Special POA in favor of their respective parents to process the transaction by notarizing abroad and getting the same registered with Registrar. I had a few queries, if you could please help address:
a) NRI Husband has NRO account in India but not his wife. He is suggesting that sale value be transferred directly to him. However as a safeguard, would you advise that I take a declaration/affidavit (duly notarized) from the wife duly authorizing her husband to receive payments on her husband’s behalf?
b) Is it fine to incorporate the above clause in the sale deed instead?
Thanks,
Karthik
A. I will not suggest. NRO account is not a big deal. Her wife can open a new NRO account or can convert existing savings account to NRO account.
B. NA
Thank you Sir. Also, regarding TDS (20.6%) applicable for NRIs selling their property, the 2 sellers are based out of Australia which India has a DTAA with.
If the sellers are assessed to tax there (they are filing returns there but not in India), can they claim credit for the TDS amount being deducted in India i.e. adjusting it against their overall tax liability in Australia? Reason I ask, is wondering perhaps that would be a much faster route to close the sale transaction than the NRIs seeking lower tax deduction certifcates from Income Tax which I am told is a lengthy process.
a) Lower tax deduction certificate is not a lengthy process. It takes 10-14 days if all the documents are in place. Normally, net tax liability is much less than TDS amount. Therefore they can claim refund of excess TDS. The tax liability in Australia will depend on TDS rate in Australia.
b) They need to check their AO that has not correlation with address. Please check following link
https://incometaxindiaefiling.gov.in/e-Filing/Services/KnowYourJurisdictionLink.html
Dear Nitin Sir,
I am buying a property from NRI.
Seller NRI had bought this property 3 years back using a POA.
POA has been signed and notarized in India. But it has not been registered in Sub-registrar office.
Is it a mandate for POA to be registered even if the NRI was in India and signed the POA on Indian soil?
Thank you in advance for your guidance.
Best regards,
Soni
It is not clear whether POA was executed to authorize someone in India to purchase property on behalf of NRI seller or the title of the property was transferred through POA i.e. sale deed/conveyance deed is not executed (not registered in sub registrar office) & just based on the POA, the title was transferred.
I am a NRI based in US and am planning to sell my flat in Bangalore. The flat is registered in both mine and my wife’s name. Both of us cannot travel to India for sale process and thus am appointing a family friend of ours as a POA just for this sale process. I have created the POA document on plain A4 sheets, signed and notarized it from the local notary here in US and have sent that to my POA. He has also got it notarized from the local notary in Bangalore. Please note that I didn’t get this POA document attested from the Indian Consulate here. Now, will my GPA, while registering this POA document in Bangalore (before the sub-registrar), face any issues that the document isn’t attested by the Indian Consulate in US? If there is a problem, then can he send me that signed POA back and can I get it attested from the Indian consulate here? Or do I get a new POA created, attested and send it across to him again?
Moreover, what will be the charges of getting the POA registered – since I read at few places that there is a surcharge of 5.1% of the sale value for registering a POA to a person who is not in blood relation to you? Is this correct?
Also, what is the difference between adjudication and registration of the POA document? Earlier this year, my GPA had just adjudicated the POA document and used it for registering my flat. I have to create this POA since the earlier one didn’t include the clause for selling the property.
POA executed by you is legally null and void in India. You can execute fresh POA as i explained in my post.
Stamp duty rate is high if it is executed in favor of non relative. The rate vary from state to state.
I doubt that POA executed for purchase of property is also null and void. Sometimes the terms like Adjudication, Notarization and Registration are used loosely and interchangeably. You should only check whether due process is followed or not. If the proper process is not followed then the document is legally NULL and VOID in India and can be challenged in future.
Dear Sir,
Is the witness sign necessary if PoA is executed outside India? What if we have missed the witness sign but the PoA has been attested by our embassy?
As i mentioned in my post, Witness signature is must. If the witnesses have not signed the POA then in my opinion POA is legally null & void in India.
Hello Sir,
We have a property in India which is jointly owned by me and my father. The entire amount for purchase was paid by my father. Now we are looking to sell this residential property. I am currently living in USA. Can my father (who is in India) sell this property? Since I did not pay a penny to purchase this property, is it possible for me to surrender my ownership,so that my father can sell the property and also avoid NRI TDS?
Thanks in advance for your suggestions.
Thanks,
Rohit
You may execute gift deed in favor of your father else the property ownership will be considered as equal at the time of sale even if you have not contributed a single penny.
Hello Sir,
I am buying an apartment flat in Bangalore which has joint ownership (Wife and Husband). They are in USA and the GPA holder is wife’s father(direct relation) who is in India.
For GPA attestation,
1. Do we need 2 GPAs – one as father relation and one as father-in-law relation?
2. If the answer is No and only 1 GPA is needed, what should be mentioned in the GPA (father or father-in-law) ?
3. Will there be any additional charges applicable as the GPA holder is not direct relation to the Husband? I came to know that the charge is 5% of the sale value but will it be reduced to 2.5% since the GPA holder is father to wife?
Thanks
Preetam
1. Husband and Wife will execute separate GPA
2. Already answered
3. It is not true. The stamp duty will depend on blood relation. Father in Law and Son in Law are not a blood relative therefore GPA registration charges will be 5% of the property value.
Sudip
Can u explain what is the process to register poa that was sent after embassy notarization? I did talk with lawer and they are saying no need to register as i am not present in india. Instead that poa needs to be authenticated. That can be done using a rs 50 stamp. What i understood was that some stamp will be added on that poa that will proof that it has been authenticated.
I don’t agree with your lawyer. I have explained it in my post. You may go through my post.
Dear Mr Nitin
Husband and wife both NRI want to sell property in India, wife giving POA to husband attested by consulate of India in New York, is it necessary to register this POA in India ?
or can I just attach a copy of this POA along with sale agreement and get this sale agreement registered ?
Irrespective of the fact that the POA is issued to husband. All the steps highlighted by me in the post should be followed.
Dear Nitin Sir,
My Son and his Mother are jointly having a house and a Shop. Son has became NRI 2 years back .Can his Mother who is indian resident can sell the property .If yes kindly guide steps.
No mother cannot sell property unilaterally. Son can issues POA in the name of you/brother/sister and then the property can be sold without physical presence of the son in India.
Dear Nitin,
I am planning to buy a property in Gurgaon. Seller are 3 NRIs and joint owners and first buyer from builder, all based in scotland. At the time of sale to me, One seller would be coming to India for registry but the other two would give GPA in favor third seller. while the sellers are willing to follow the process you have described above in terms of but i have doubt of their conveyance deed which they have executed with builder DLF. To give you facts, conveyance deed from Builder was signed by One owner himself and one SPA holder. that SPA was based on format shared by DLF but was neither attested by Indian Embassy in Scotland nor registered with SDM. So my questions are as follows
1. Is the conveyance deed executed by seller from DLF valid ?
2. If i follow the process described by you and get the registry done in my name, would this transaction be legally valid ?
3. can the sellers execute joint GPA in favor of 3rd joint owner or they have to execute GPAs for them individually?
4. Does GPA needs to be irrevocable or is it not mandatory ?
1. Though i have not checked the document but Prima Facie the Answer is NO.
2. No as original sale deed can be challenged and declared Null and Void anytime. Therefore, by default all future sale deeds will be null and void.
3. Each and every seller should execute separate GPA
4. You may insist on SPA and these are irrevocable only. You may include relevant clauses to protect your interest.
Dear Nitin,
W.r.t. Point no 1, I just noticed that POA executed by current owners in favour of 3rd person authorising him to take possessio/ execute conveyance deed was executed in Gurgaon, India but was not registered with Sub registrar. It was only certified by Lawyer and stamped by Local notary. Will the Original conveyance deed still be invalid? And can subsequent transfers be legally valid?
I have explained this scenario in my post. Request you to go through my post.
In my opinion, conveyance deed is still invalid. Any subsequent transfer is null and void.
Hai,
I bought a land in Kerala on a POA. The land as per previous registration document, and village office records are 7.20 Ares but by mistake the POA says 7.00 ares. How can I correct it the new registration documents also says 7.20 but village officer hold the possession certificate for want to correct the POA, could anyone advise the procedures. The POA executed in US and legally notarized and attested in CGI, Houston and .
An addendum to the POA can be executed/signed by following the same process as followed for POA.
Hi Mr Bhatia,
I wanted to know if it is allowed for the seller who is an Overseas Citizen of India (OCI) to execute a POA in favour of his son, who is also an OCI, to dispose of Seller’s property India by following Steps 1 to 5 as stated in your article. Or, is there a bar to grant a POA in favour of a non resident.
Regards,
Dear Mr Bhatia,
on similar lines i would like to know if POA can be made by an NRI in favour of PIO/OCI card holders ?
It is possible.
The POA can be executed in favor of OCI.
Thank you Mr Bhatia
Hi, Mr. Bhatia.
i father bought a property and as he was heart patient so he put the property in name of my mother. My mother expired 4 years back and left a unregistered will in which she made me and my brother the sole owner as both of us are living in canada and my father lives in india and my sister also lives in bhopal india. we want to transfer this property in the name of my father as he was the buyer of house with his income so what can we do? should we have to make gift deed or poa or some other easy method as we both can not come at same time to india.
Hope to get early reply. thank you very much
dinesh
You have not mentioned whether you obtained probate or not. Secondly, i am assuming property is still in your mother’s name.
Thank you Mr. Bhatia for giving reply. That is the only WILL she made in front of my father with one wittness but WILL was not registered as somebody told her that is not must.Secondly still the property is in the name of my mother. Thirdly we all, (me,my younger brother and my elder sister) are agreed that we should transfer in name of our father so that he can make WILL as he wish and get it registered.
Thank you for taking time and solving others problem. may god bless you.
dinesh
Based on this WILL you need to probate from the court i.e. certified copy of the WILL. Based on probate you and your brother can transfer the property in your names. After that you and your brother are free to gift the property to your father.
Alternatively, if you and your brother decide not to invoke this WILL then all the legal heirs of your mother have to obtain succession certificate from the court. Based on that property will be transferred in the name of all the legal heirs. The rule is bit complex in this regard and lawyer will help you.
Dear Mr. Bhatia,
regards.
we have not obtained probate.Another thing is if we sideline the will and just want to transfer the property in the name of father than what we have to take the course.will it be easy or to get probate and than go for transferring.
thanks
Both processes require court intervention. If your other siblings have no objection then the process will be faster. In my opinion, probate route will be less hassle.
Hi Mr Bhatia. How does property selling process by an NRI brother to his India resident sister or his nephew, niece who are Indian citizens work?
Can you pls help explain what the Indian buyer (nephew, niece) in this case needs to do if the NRI gives PoA to his Brother in law to sell the property?
Thanks. Shrikant
It is normal property transaction. Agreement & sale deed will be signed by the POA holder and consideration will be paid to you post TDS deduction. For more details, please go through my posts on NRI property.
Hello Nitinji, is there any particular format of the NRI PoA that is acceptable in all states in India, or there are different formats for different states? Can you suggest if there is a sample format? Many Thanks
There is no particular format. It can be drafted by your lawyer depending on your case details.
Hello Mr Bhatia. I am an NRI and citizen of another country. I want to give my sister (an Indian resident) authorization to sell property on my behalf. Can I execute a POA while physically in India and will it be valid? Or do I have to go to a consulate where I am resident. Thank you in advance. N Moorkoth
If you are present in India then you can execute POA and register. It will be valid.
Hi Mr. Bhatia,
I would like to ask you if a POA can be given by a nephew living abroad to an Uncle (mothers brother) in india, does this relation come under the definition of a close relative
It is possible. You may check definition of relative through following link
https://www.nitinbhatia.in/personal-finance/gift-tax-tax-implication/
2 points are not clear
1. whether GPA was attested in Indian Embassy or consulate office or not.
2. I am not sure what is meant by validation of GPA. If it is registered in SDM office then it is okay. Notarization will not suffice. In my opinion SPA should be registered in SDM office.
Hi Mr Bhatia,
I am currently in Germany and i want to sell my flat in Pune,how can i give complete power of attorny to my Father to cell and close the documentation regarding home loan.
I request you to follow the steps as shared by me in the post on this webpage.
Hi Mr Bhatia,
We have a flat in Maharashtra; self first owner and son & wife second & third owners. Son is NRI. We are selling the flat. As the son cannot be here to sign himself; we obtained a POA from him which was attested by the Consulate in US,
I am told by a lawyer friend that the POA attested this way, needs only to be ‘notarized’ with Rs 500/= stamp paper by a Notary.
Whys do you say that it has to be registered??
It has to be registered in India with either SDM or Sub Registrar office.
Dear Mr. Bhatia,
I understand the importance of POA. My NTI/POI cousin is purchasing a flat in Chennai. Can I sign the agreement to sell since I trust both the buyer and seller (Builder). Is it legally Ok. However she will sign the sale deed positively. Even our lawyers said that if everything goes well there is no problem in anyone signing the sale agreement.
Your query is not clear to me. It seems POA is not executed in your favor. Please confirm.
POA is not executed since it would take much time esp on registration here.In case the biulder does not agree for it.Then the agreement of sale has tobe posted and got signed from USA
Dear Sir,
I immensely thank you for your promptly replies. My problem is that neither an auditor or lawyer or NRi expert in person are able to answer my queries. For such queries they are charging exorbitant rates.
Now in this case, please note that any agreement signed outside India is legally not valid in India. The only solution is that your cousin can execute POA in your favor. You will get this POA registered in India and then you can sign on your cousin’s behalf. I have explained in my post how to execute POA.
It is not that time consuming exercise as perceived and unfortunately there is no other option. You can complete this process in 7-10 days time. You can postpone the execution of agreement of sale till the POA is ready.
Dear Sir,
The builder as well as the lawyer say that agreement to sell ( road map) can be signed by me as far as the trust between the NRI/PIO and me is genuine and it is enough if she signs the sale deed when
she comes to India within 4 months of the date of execution of sale agreement. Are we right. I am going to occupy the flat with a rental agreement.
Personally i will not suggest. Your cousin will face problem in future. The builder will suggest as he would like to immediately close the deal.
Dear Mr. Bhatia,
I am NRI and my wife too. We have bought one flat in NOIDA Extn (Gr. NOIDA) in 2010, however, now Builder MAHAGUN giving posession of the flat. We want to registry and take handover on May, 2017. I am coming for it and my wife is 1st applicant and myself 2nd applicant. I am taking POA of my wife at Embassy. Now, my question is where to register this POA and what is the procedure ? Is they will charge any money to register POA ?
Thank you.
You can register it in SDM office or Sub Registrar office (Each state has different rule). The charges will be minimum as it is executed between husband and wife. Normally it is few hundred rupees.
Hello Mr. Bhatia,
I am staying in USA and my mother in India to whom I will be giving a POA to buy a flat in Mumbai. While I understand that I need to :
1) Make the POA deed on a blank paper
2) Get it notarised and then attested from the Indian Embassy
3) Send the deed to India and get it registered from the SDM office.
However, the builder says that if in step 1) – I make the deed on a stamp paper instead of a blank paper and then follow steps 2 and 3, I do not need to get it registered. Is this correct ?
I see that you have always mentioned below that the deed must be registered.
Thankyou!
Regards,
Harsh
In my opinion, It is not correct.
Thank you!
Hi Mr. Bhatia,
Me and my wife want to give general POA to my father for property and other transcation in india on our behalf. Can you pls let us know if we need to create 2 separate POA or we can create one.
You and your wife should issue separate POA.
Hello Mr.Bhatia,
My real Brother is NRI and purchased a flat in NOIDA. The POA has my name and my residence is in Jharkhand. POA is registered by Indian Embassy in USA. So my question Is there any need to register POA again in India? If yes then from where Jharkhand or Noida. ??