In certain circumstances, especially in the present pandemic times, NRI business travel gets limited resulting in managing assets/investment decisions getting disrupted. But NRIs living abroad can use Power of Attorney to manage their properties in Telangana by way of appointing an agent or attorney to execute real estate transactions on the principals behalf.

Power of Attorney

POA is the power that a person (principal) grants to an attorney (a legal agent). A principal-legal agent relationship is established between the two and the principal would be bound by the acts of the legal representative.

For instance, if a person has purchased a property in Telangana and cannot be physically present to process the registration, he can delegate these rights/duties to any relative/friend by means of a registered power of attorney.

Types of PoA
  • Special PoA: A special power of attorney is a legal document that authorizes one person, called an agent or an attorney in fact, to act on behalf of another person, known as the principal, under specific, clearly laid-out circumstances. A special POA may be transaction specific and the POA ceases on the completion of transaction.
  • General PoA: Under a general PoA, broad powers are granted to the representative to make decisions on behalf of the principal. Besides, the representative can also carry out the various activities on behalf of the principal without any limitation on transactions.
  • Durable PoA: A durable POA remains effective for a lifetime, unless it is explicitly cancelled. A specific clause can be inserted in the document, stating that the representative’s power would remain valid even if the principal becomes incapacitated.
POA in Real Estate

Power of Attorney (POA) in real estate transactions is used as legal instruments by people living abroad (or other parts of the country) who manage properties in India. People having numerous properties find it tough to be present everywhere physically. Therefore, they execute POAs to delegate the responsibility.

In real estate, POA could be given to an agent or attorney for selling, buying, leasing, collecting rent, borrowing, managing and settling disputes and entering contracts etc.

In cases where a property has multiple owners, it would be difficult for all the concerned parties to collectively complete a transaction. In such cases, granting the power of attorney to a single person would be ideal. As a result, this person would be empowered to act on behalf of all the owners collectively.

Execution of Power of Attorney in Telangana, India

For an NRI who is in Telangana to execute POA

  • The NRI needs to get the required matter of the POA drafted and typed on non-judicial stamp paper of adequate value which is generally Rs 100.
  • The NRI is then required to visit the Sub-Registrar’s Office along with the legal agent/attorney and two witnesses.
  • ID proofs and photocopy of the POA, along with the original copy are required.
  • At the Sub-Registrar’s office signatures, photographs and fingerprints of the party will be collected.
  • The registered POA should be collected on the due date from the Sub-Registrar’s Office.

For an NRI who is outside India to execute POA

  • The NRI should execute a POA from the country of respective domicile through the Indian Embassy/ Consulate.
  • The NRI can do it in two ways
    • Legalisation: In this case, signatures of the notary or judge before whom the POA is executed are required to be authenticated by the duly accredited representative of the Indian Embassy/Consulate.
    • Apostalisation: The deed of POA executed outside India is proven through an apostallisation process which is governed by the Hague Convention, 1961. Also known as super legalisation, apostille is a certificate which confirms and verifies the signature/seal of the person who authenticated the document.

Both the above deeds need to comply with Indian laws such as the Indian Registration Act, 1908, and the Power of Attorney Act, 1882. Stamp duty would be payable according to Section 2(17) read with Schedule-I of the Indian Stamp Act, 1899, when the deed is presented for registration in India.

Revocation of Power Of Attorney

If the principal thinks that the legal agent/attorney is misusing the power granted to him/her or is unable to properly discharge the duties assigned to him/her, he/she has the option to revoke the POA. Revocation might also be required if the principal thinks that now he/she is in a position to take care of his assets. Revocation of POA has to be done in the same manner in which it was executed.

NRIs can manage their Properties in Telangana using Power of Attorney

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