With the advancement of technologies in reference to legal aid, there have been new amenities which are available and accessible to the general public. Let us understand what is power of attorney and the General power of attorney format for NRI.
What is the Power of Attorney?
In simple terms, the concept of Power of Attorney deals with a situation where the Principle appoints an attorney to legally represent him in case of his absence. The Power of Attorney Act, 1882 established in India to give a legal framework and guidance to the conduct of Power of Attorney and describes how to give power of attorney from USA for India for NRIs.
What is the need of Power of Attorney act, 1882?
With the help of this Act, there has been an efficient use of lawful transactions like property, business affairs, financial and Banking dealings, legal matters etc. when the ‘Principle’ or ‘Donor’ is an NRI. Power of Attorney is given from USA for India by NRIs or even immigrants to easily delegate their state of affairs on any reliable person. It can also be done to discharge their responsibilities under the official purview of the State. Hence, a Power of Attorney should be considered when planning for long-term concerns.
Do I need a Power of Attorney?
A Power of Attorney is deemed to be a legal document by which one person assigns powers of transaction in matters concerning property, banking, legal and judicial transactions, tax payments, to other person due to certain motives like being out of country, or getting old, or not able to attend one’s duties in those matters.
Principal/Grantor/Donor- The person who permits the power to the other person to act on his behalf.
Attorney/Agent/Donee- The person to whom the power is permitted
What are the different types of Power of Attorney?
There are different types of Power Of Attorney’s that fall under either a general power of attorney or a specific Power of Attorney. Read further to understand the general power of attorney format for NRI.
What is the difference between General and Specific Power of Attorney for NRI?
Under General Power of Attorney for NRI, the agent can execute almost any act as the principal, like opening financial accounts and managing personal finances. The General Power of Attorney for NRI consists of a wide range of powers and is not confined to any particular work. Hence, it needs to be appointed only to a very trustworthy person. This arrangement is terminated once the principal becomes incapacitated, annuls the power of attorney or passes away. A person can permit the Attorney to sell, buy, rent out, recover his debts, open bank accounts, close accounts, attend the courts, appear on behalf of the principal in legal matters or file tax returns etc in the General Powers.
On the contrary, the agent under specific power of attorney for NRI has only a precise set of powers limited to a certain area like granting the agent authority to trade a home or other piece of real estate. The Specific power finishes once the task or specific act is done. Therefore, it is work specific only. Also, under this one cannot assign a Specific Power of Attorney for many acts. In that case you have to establish separate Specific Power of Attorney deeds for each act.
4 most important aspects of Power of Attorney for NRI
- Identification details like name, age, address and occupation of the Principle.
- Legal validity of the motive for appointing the Power of Attorney.
- Technical details like date and place of initiation of the deed and date from which it comes into force.
- Under general power, all the acts and areas of granting the power should be mentioned unmistakably. It should also mention if there is a presence of any particular act that is not to be done by the Attorney in.
General Power of Attorney (GPA) for NRIs (Non-Residential Indians)
An NRI or non-resident Indian can become a Power of Attorney deed even by living outside India and without having to travel to India for that purpose. Most NRIs have properties (read our resource on How to sell your property in India and bring back money to USA) and banking business in India which may require their presence while transactions occurs. Hence, NRIs can always assign the powers to transact to another individual who is either a family member or a friend. Both specific and General Power of Attorney can be assigned by NRIs. Let us understand the procedure for making a Power of Attorney Deed
4 step Procedure for making a General Power of Attorney Deed
- Draft the Power of Attorney for NRIs with attestations.
- Reach to the Indian Embassy or Consulate of that country and get it stamped and sealed from the embassy. Alternatively, Public Notary of that country can also notarize along with mentioning the notary registration number on the seal on every page of the document.
- Send the signed deed by registered post to the Indian address under the name of any relative or friend.
- The person in India should get it registered in India at a Sub-Registrar office or SubDivisional Magistrate office by paying the proper registration charges applicable in that state.
5 steps to give Power of Attorney from USA for India
- Attest the power of attorney. Two witnesses should also sign the deed. The addresses of the applicant and witnesses should be clearly mentioned under the presence of a notary public or at the Indian Consulate as well. Note: All post offices and banks consist of a public notary too.
- Apply for an apostille to the Secretary of State. The Department of State, Authentications Office is accountable for signing and issuing certificates under the Seal of the U.S. Department of State. The goal is to endow with authentication services to U.S. citizens and foreign nationals (Indians) on credentials such as a Power of Attorney that will be used overseas
- Send the deed to the Indian Consulate. If you are submitting the deeds in person, you can attest it in the presence of the officer at the Consulate. The attestation service at any Indian Consulate is offered for Indian citizens only. Although documents presented by applicants of other nationalities will be attested only if there is an ‘Indian’ connection.
- Pay the charges at the Consulate which are $20 (twenty) for every attestation, $10 (ten) or testimony of each photograph and $3 (three) for the Indian Community Welfare cost all of which are non-refundable. Fees should be remunerated through money order or cashiers’ check drawn in favor of the ‘Consulate General of India, (City of Consulate)’. Personal checks, credit cards or other banking documents are not accepted. Debit cards are allowed with an additional service fee.
- Once your Power of Attorney is attested by the Indian Consulate/Embassy, it can be sent to India.
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What is the General Power of Attorney format for NRI?
Here is the general power of attorney format for NRI. In case you have any trouble, get in touch with our panel of best NRI lawyers to draft a Power of Attorney online.
What does Transfer (Revoke/ Change) Power of Attorney mean?
Complete the legal paperwork. Fill out a formal revocation document to cancel any existing powers of attorney in a form template specific to your state.
Advise the attorneys that their powers have been annulled. To avoid any problems, all the attorneys must have a copy declaring your wishes to revoke their powers of attorney. This can also be done through a simple mail. Destroy previous documents. Once you have changed or revoked a power of attorney, diminish any copies of the document from files, family members, and even attorneys. Keep a copy of new
documents for your records.
What is the cost of Power of Attorney for India from USA as an NRI?
The stamp duty billed for a Power of Attorney is Rs 100. For registration, the amount payable is also Rs 100. For a general power of attorney set to promoters and developers, the stamp duty applicable is Rs 1000 and registration fee is Rs 100. The total amount of registration of Power of Attorney should be around Rs. 2500 or 50$ inculcating Government charges and any miscellaneous lawyer fee.
4 steps to check Legal validity of General Power of Attorney for NRIs?
The following formalities should be completed in order to ascertain the process valid legally for NRIs
- The Deed has to be prepared on a plain paper and attested in the Indian Embassy or by a Notary from that country.
- The Grantor should put his/her signature in all pages.
- The deed ought to be sent by registered post to an Indian address in the name of an identified person.
- The individual in India to whom the deed is sent should get the deed registered in the Sub-Registrar office in the area where property is located or the place of residence.
Power of Attorney for Property and Real Estate
Management of Property:
Power of Attorney of property is a legal document transmitting the legal right to the attorney or agent to manage and access the principle’s property in the circumstance the principle is unable to do so by themselves. Power of Attorney of property involves all assets held by the principal, such as real estate, bank accounts, and stocks.
The conditions of the contract, including what can and cannot be managed, are determined at the time of establishment. The everlasting power of attorney of property is often granted when the principal has reached a stage when they no longer hold the long-term capacity to make and enact their own decisions. There are other instances when power of attorney of property might be discussed.
In real estate, Power of Attorney of property may be used by persons who are selling a home but are living overseas and unable to be present during the trade. Thus, for power of attorney of property to be invoked and legally binding, two witnesses must be present at the attestation of the document.
Power of attorney to rent property in India for NRI?
A Power of Attorney of any kind is a deed which, begins with the brief acknowledgment of title and description of the property. The declaration of the intention to rent it on lease is mentioned. It is very important to itemize the reasons for executing the power of attorney. Such details may be about the inability of the Principal to be physically in attendance at the time of fulfilling the duties. Those reasons may contain the residential location of the Principal being in a foreign country; it may also be causes like physical infirmity or old age. It is also a valid reason if the Principal is a homemaker.
The details of identities of both the parties that are the principal and the attorney need to be stated along with their present addresses. The appointment Section is added which gives validity to the selection of the second party as the true and lawful attorney of the first party.
The description of the formalities to be carried out by the attorney includes :
- Renting the whole or any part(s) of the said property on terms and conditions as the attorney in his judgment deems fit and accepts the surrender of ownership from such tenant/lessee or other occupier and to take possession and obtain rents, profits, and income from the property in whole or in part.
- Executing and delivering in place of the Principal, the tenancy, agreement, lease deed, as may be essential for letting or leasing the whole or any part parts of the said property.
- The property must be maintained well by periodic repair and painting.
- Gathering and receiving from the tenant or occupiers of the property all fees, rent, and other charges of money that may be due and taking all legal proceedings for the recovery of such sums.
- Presenting the lease deed for registration before the Sub-Registrar office and completing all specified formalities including compensation of stamp duty, registration, and other fees payable to the Government.
What is the format for power of attorney to rent property in India for an NRI?
Can Power of Attorney be used to sell/purchase property in India by an NRI?
In 2011, the Supreme Court (SC) held that transferring property title through General Power of Attorney is not legally binding.
However, selling the property by the way of General Power of Attorney had become widespread practice across Indian cities, owing to the monetary benefit to
both the purchaser and the seller.
A sale deed must be carried out for transmitting property titles. Afterwards, the buyer has to forfeit stamp duty and registration charges. The supplier will also have to bear the burden of capital gains tax on the operation. By transferring property title from a General Power of Attorney, these charges are annulled. From the seller’s outlook, a General Power of Attorney makes it possible to bear the transaction even if they do not seize clear property titles.
On the contrary, from the buyers’ perspective, they can manage to pay for the property at a much cheaper charge than the market price.
The 2011 Supreme Court order stated that “a power of attorney is not a tool of transfer in regard to any right, title or interest in immovable property”, the court directed public bodies not to register/mutate properties based on these documents. However, authentic transactions carried out through the General Power of Attorney would be applicable for NRIs.
Subsequently, the states barred the registration of properties sold through the General Power of Attorney. After striking a blanket ban on registration of such properties in 2012, the Delhi Government allowed listing in favor of spouses, sons, daughters, brothers, sisters, and any other relative or individual of trust by registered owners.
To summarize, the law bears that a power of attorney is not a tool of transfer in regard to any right, title or interest in an immovable property but any genuine contract carried out through General Power of Attorney is deemed valid under the law
Drop in your comments below in case you have any queries unanswered and we are ready to tackle your tough questions. We hope we have made all queries regarding General power of attorney format for an NRI clear.
Yes, NRI can give two types of power of attorney. General Power of Attorney and Specific Power of attorney
It is a 5 step procedure:
1- Attest the power of attorney. 2- Apply for apostille to Secretary of the State. 3-Send the deed to the Indian Consulate. 4-Pay the charges at the Consulate. 5-Get Power of Attorney attested by the Indian Consulate/Embassy and send it to India
The total amount of registration of Power of Attorney should be around Rs. 2500 or 50$ inculcating Government charges and any miscellaneous lawyer fee.
The following formalities should be completed in order to ascertain the process valid legally for NRIs:
1-The Deed has to be prepared on a plain paper and attested in the Indian Embassy or by a Notary from that country.
2-The Grantor should put his/her signature in all pages.
3-The deed ought to be sent by registered post to an Indian address in the name of an identified person.
4-The individual in India to whom the deed is sent should get the deed registered in the Sub-Registrar office in the area where property is located or the place of residence.