Power of attorney rules for NRIs in Hyderabad property deals

If you live abroad and are buying or selling a flat in Hyderabad, at some point a document will need signing at a Sub-Registrar Office on a day you cannot be there. A power of attorney (PoA) lets someone you trust in India sign for you. It also hands real authority to another person, so what the document says matters more than most people expect.

General or specific

A general PoA lets the holder act for you across many matters: several properties, bank dealings, legal paperwork. A specific PoA (also called a special PoA) covers one transaction or one task, such as registering the sale deed for a named flat.

For a property deal, give a specific one. It names the property, lists exactly what the holder can do, and ends when the job is done. If something goes wrong, the damage is limited to that one transaction.

What to write into it

The holder can only do what the document says, and banks and registration staff read it literally. Spell out each power you need: signing the agreement of sale, presenting the sale deed for registration, paying stamp duty, dealing with the builder, signing loan papers with the bank, making or receiving payments. Add the full property description, how long the PoA stays valid, and anything the holder may not do, such as selling to themselves or appointing someone else in their place.

Have a lawyer in Hyderabad draft it. relai does not draft legal documents, and a template from the internet is a poor saving on a purchase of this size.

How to execute a PoA from abroad

1. Get the draft prepared in India and check every clause against the transaction you actually plan.
2. Sign it in front of the Indian embassy or consulate in your country, or a local notary. Two witnesses are usually needed.
3. If you signed before a notary, expect to be asked for an apostille or attestation as well. Some banks and offices insist on it, so ask the builder and your bank what they accept before you sign.
4. Courier the original to your representative in India and keep the tracking record.
5. Your representative gets it stamped and validated with the registration department. Under the Indian Stamp Act, a document signed outside India has to be stamped within three months of reaching India, so do not let it sit in a drawer.
6. Give copies of the validated PoA to the builder, the bank and anyone else who will rely on it.

The stamp duty and fee on a PoA in Telangana depend on the type of PoA and who the holder is. Confirm the current amount, and whether your document goes to the Sub-Registrar or the District Registrar, with the registration office before you send it. A PoA that has not been stamped and validated will not be accepted for registering a property.

Choosing the holder

Most NRIs appoint a parent, sibling or close friend. A lawyer is the other option. Whoever it is should be someone who will turn up at the Sub-Registrar Office when needed, understands roughly what they are signing, and will tell you before acting, every time.

Ask for a copy of everything signed under the PoA, and for payment receipts as they happen. A short message after each step is enough. If updates stop coming, find out why quickly.

Revoking it

You can cancel a PoA at any time. Tell the holder in writing, register the revocation at the Sub-Registrar Office where the PoA was registered, and inform the builder, the bank and any authority that has a copy. Until they know, they may keep acting on the old one.

Mistakes to avoid

• Giving a general PoA when one transaction is all you need.
• Leaving the PoA unstamped or unregistered in India and finding out at the registration counter.
• Appointing someone because they offered, without asking whether they have the time and judgment for it.
• Not asking for copies and updates, then discovering a problem months later.

If you are buying in Hyderabad from abroad and want to know at which stages you will really need a PoA, book a call with a relai advisor.