In the previous blog, we have seen the Power of Attorney in detail. The process of POA differs for residents and non-residents of India. This blog clearly explains the difference in process of POA for the residents and non-residents of India. When you do the POA there are a few points to keep in mind.
Power of Attorney for executing sale/purchase of property has to be registered by the Principal and its attorney by paying proper Stamp Duty in the local Sub-Registrar of Principal. Both Principal and Attorney must be present for registration. Passport size photo of both Principal and Attorney is required. Although on the spot photos would be taken, it is advisable to carry passport size photographs. If an inter-state POA is executed, the Sub-Registrar (for address of the property for sale) would follow the ‘Live Check’ rule. The ‘Live Check’ rule is all about cross verifying the authenticity of the POA by getting connected to the Principal’s Sub-Registrar. At times, Sub-registrars can send letters for approval as well to minimize the chances of fraud. In this case, POA execution is completely at Sub-Registrar’s discretion. This process may take a month. We suggest consulting your legal advisor.
KEY points for POA for Indian Residents:
- Proper stamp duty or Registration Charges (Rs. 200+/-): For Domestic POA, Stamp duty of minimum Rs. 200/- must be paid in local Sub-Registrar office where POA is executed. Please check with your lawyer about exact Stamp Duty charges. E Stamp paper should be from the place where the Principal is staying.
- Language: POA should always be drafted in English. For example, POA drafted in Hindi in Rajasthan may not work in Bangalore.
- For Registered POA of domestic Principal, both Principal and Attorney must go together to local jurisdiction Sub-Registrar office with two ID/Address proof having photo (Aadhar card, PAN card, Driver License, Voter’s Card etc)
- Sub-Registrar will click a digital photo and print it in POA. It is recommended to carry two passport size photographs by both Principal and Attorney.
- Principal needs to sign on all the pages and Agent needs to sign at the designated space.
- Two witnesses are required with valid ID/Address proof having photographs.
- Adjudication of domestic POA is not required.
POA Process for NRIs in USA
Please find below instructions for POA process for NRIs in USA in detail:
A. Notarisation/Apostille process in USA
- Print your POA on a plain white 8.5"X11" (normal A4) size paper. If possible, please print on good quality paper with GSM 90 to 110.
- Executant must sign at the bottom of all the pages of POA
- Notarize the POA with Notary public with two witnesses Apostille the POA at Secretary of State Office (Varies from state to state)
- Attest the POA at Indian Consulate. It is Optional, but we recommend it.
- Supporting documents are required for authentication in USA:
- Original printed POA,
- Previous and current Original Passport and copy of first five pages and last two pages of current passport,
- Notarised copy of VISA (H1B/H4 and I-94, or Employment Authorisation Document (EAD) aka Work Permit or Green Card etc) and
- Proof of USA Residence address e.g. Driver License / Utility bill / Landline Telephone bill (Mobile Bill or Bank Statement as address proof is not accepted).
Further details about overall process in USA can be found at:
https://www.youtube.com/watch?v=c5-DJNvZzW8
Further details for Notary, Apostilles (Varies from state to state in USA), and attestation from Indian Embassy can be found at:
B. Adjudication in India
- Duly attested GPA/POA from USA needs to be adjudicated in District Registrar in Bangalore, India. Your local lawyers should take care of it and provide required guidance. For example, if the address proof of the attorney is in Marathahalli, adjudication will be done at the District Registrar office in Shivaji Nagar. Adjudication can’t be done in the Sub-Registrar office located in Varthur or KR Puram.
- The Attorney must apply by writing an application to the District Registrar along with his photo in the Application and Attorney’s Unique ID/Address proof having photo (as mentioned in the POA).
- Documents required for Adjudication: Original POA, and copy of POA, self-attested government ID proofs with photo as mentioned in POA, including Original ID/Address proof, Duly signed Application for Adjudication and one passport sized photo of POA Holder. It is recommended to carry two ID/Address proof (Aadhar Card, Voter ID card, PAN Card, Driver License, Passport etc) with you.
- Required stamp duty to be paid for the POA to be adjudicated.
Service Fee: We strongly recommend hiring a lawyer for the purpose of correctly executing a Power of Attorney. Your lawyer will charge you for Drafting of POA, Registration Charges at Registrar office in India, and Out of Pocket expenses. Stamp Duty has to be paid as per actuals (Minimum Rs. 200/-).
Having a power of attorney can be especially useful if you are unable to manage your affairs for any reason. It's important to ensure that your POA documents are created and kept up-to-date according to the laws in your state and any changes in your circumstances. If you still would require more information about POA and how it can help you manage your affairs,it’s always better to hire a professional service provider. Agarwal Estates is one of the best real estate and property management service providers in India. The company is known for its experience in the real estate field also for values of Trust & Transparency.
