Key Takeaways:
- An Indian Power of Attorney can authorise someone to legally buy property in India on your behalf, including completing registrations and taking possession, in your absence.
- The Indian Power of Attorney document must be properly drafted, signed, and adjudicated in India to be valid and enforceable.
- Whytecroft Ford offers professional guidance on drafting and executing Indian Power of Attorney documents for property transactions in India.
Yes, you can legally buy property in India through an Indian Power of Attorney (POA), as long as it is properly executed and grants specific authority for the transaction. This legal arrangement is especially useful for Non-Resident Indians (NRIs) and overseas Indian citizens who cannot be physically present in India to handle property matters themselves. A well-drafted Power of Attorney can empower someone you trust to complete the property purchase on your behalf.
In this post, we discuss how an Indian Power of Attorney works in the context of buying Indian property, what powers must be included, and the legal process involved.
What does an Indian Power of Attorney allow when buying property in India?
An Indian Power of Attorney can authorise an individual to act as your legal representative for buying property in India, in your absence. The attorney can handle negotiations, pay deposits, sign agreements, and complete the registration process. They can also carry out associated legal and administrative tasks such as paying stamp duty, taking possession of the property, and submitting necessary documents to various authorities.
The Power of Attorney must clearly outline these authorisations. For instance, it should state the attorney has the authority to negotiate and finalise the purchase and sign agreements, such as agreements to sell, memoranda of understanding, and sale deeds. Additionally, it should allow them to complete documentation and applications required to conclude the purchase and to represent you before sellers, developers (if applicable), or any third party.
Can the attorney interact with developers, registrars, and authorities?
Yes, your attorney can be empowered to communicate with and act before developers, builders, and government offices. The individual whom you choose as your attorney may apply for planning permission, approvals and sanctions and register applications and documents.
What about post-purchase property management?
A Power of Attorney can include authority to manage the property after purchase. This means the attorney can enter into and maintain possession, carry out repairs, pay utility bills, property taxes, and maintenance charges. They may also deal with government departments by filing required applications, declarations, or returns.
If desired, you can also authorise them to lease or license the property, collect rent, and manage tenant relations. Furthermore, the attorney can appoint caretakers, agents or employees to assist with the day-to-day management of the property.
Can the attorney apply for a mortgage or home loan?
Yes, your Power of Attorney can also include powers to borrow from a financial institution to purchase the property. The attorney can apply for a housing loan, provide documentation, accept loan terms, sign agreements, and create a mortgage on the property.
They may also deal with disbursement and repayment of the loan, execute all required security and loan-related documents, and appear before the Sub-Registrar to register mortgage instruments. The attorney can even negotiate changes to loan terms, respond to bank queries, and issue no objections or consents for the bank to recover dues or assign the loan to another institution.
Which type of Indian Power of Attorney is suitable?
Depending on the nature of your transaction, you may choose a Special Power of Attorney, which is limited to a specific purpose, such as one property purchase. Alternatively, a General Power of Attorney may be suitable for broader transactions, including sale, purchase, property management and other non-property-related actions. In some cases, a Joint Power of Attorney may be issued to allow multiple individuals to authorise an attorney either together, provided the scope of the powers remains the same.
Each form of Power of Attorney must be carefully drafted to ensure that it meets your needs and complies with Indian legal requirements. You can learn more about the differences on our Special Power of Attorney guide and Joint Power of Attorney guide.
How do I make an Indian POA from outside India?
If you are living abroad, the first step is to have the Power of Attorney drafted correctly, with legal advice. You must then sign the document before a qualified Notary Public. Depending on whether your country is part of the Hague Apostille Convention, the document should either be apostilled or consularised.
Once the signed and attested Power of Attorney reaches India, it must be adjudicated at the local Sub-Registrar’s office within three months. This makes it legally valid for use in Indian transactions.
You can follow our detailed guide on how to send a Power of Attorney from the UK to India.
Are there risks in using a Power of Attorney?
While using a Power of Attorney is a practical solution, it is important to choose your attorney carefully. Appoint someone trustworthy who understands their legal responsibilities. You can limit the duration and scope of the Power of Attorney to reduce risk.
A POA becomes invalid upon the death of the principal and cannot be used after that point. Therefore, clarity and legal precision are crucial when drafting such documents. You can read more about selecting the right attorney, POA validity, and whether it is valid after death.
How Whytecroft Ford Can Help
At Whytecroft Ford, we specialise in assisting individuals and families with Indian property transactions by providing comprehensive Power of Attorney services tailored to your specific needs. We work with clients across the UK and internationally to ensure their Power of Attorney is correctly drafted, legally valid, and fit for its intended purpose.
If you’re planning to buy property in India and need reliable legal support, contact our friendly and experienced professionals on +44 208 757 5751 or use our contact form.
