Dear Professionals We are planning to buy a property in Mumbai from a NRI couple. Husband and Wife are co-owners of the property. Since they are based out of USA they are finding it difficult to come over for the registry. They want to give POA to their sister (husbands real sister) to execute the transaction on their behalf here in India. 1. I needed to understand from you all the legality with respect to such a transaction ? 2. Can both owners give POA to Husband's sister to execute the transaction ? what kind of POA needs to be done ? 3. Transfer of money should be done Equally to both Husband and wife in different accounts ? or can it be done in their joint account ? 4. The deduction of TDS also needs to be done separately for husband & wife ? Regards
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1. The transaction sha be legal.and sell shall be valid , the sister with POA can register the property in favour of you.
2. See they both can make separate special power of attorney for the sister to sell the property and register same.
3. Can be done in there joint account. And same can be mentioned in sale deed.
4.See you can deduct TDS from total amount if in joint account you are depositing and same can be deposited with department half in name of husband half in name of wife.
1. Nothing wrong legally
2. A poa can be given by both owners to their relative for complying with registration formalities on their behalf before the registration department
However do remember the sale deed must be signed by the co owners before the Indian Embassy or consulate in the country where they presently reside
The poa must not contain a power to sell, because then it would be required to be stamped and registered compulsorily. As per stamp law the sister in law of the wife (her husband's sister) is not a specified relative. But she is a specified relative of husband being her sister. So in case power is given to a non specified relative, there is compulsory stamping and registration needed. That is why if wife also gives power to her sister in law, the poa wud have to stamped and registered for the wife's share in the property. To avoid all this, its better if the sale deed is signed by the owners themselves and only registration formalities are done by the poa holder on their behalf
3. As per instructions of the vendors duly recorded in sale deed
The cheque can be handed over to the poa holder (so include a power to accept cheque on behalf of owners) who can then deposit it in the NRO account of the owners maintained with an Indian bank or you can directly do a net bank transfer to the specified account
4. If the owners have provided you their PAN cards ie of both husband and wife, then you can deduct TDS for both. Ideally that should be done.
You should insist that sellers come down to India to execute Sale deed
2) if it is not possible specific POA should be executed by both in favour of close family relative
3) POA should be attested before Indian consulate
4) TDS deduction needs to be done separately for husband and wife
1. yes, a close family member like sister of one of the vendors is fit to become constituted attorney provided it is validly executed and affirmed in USA and then adjudicated in India.
2. Yes, Special Power of Attorney for making this deed is enough.
3 Either of the options is good.
4. Yes.
Transfer of immovable property is possible through POA if the same is a registered one. If the Principal is a foreign citizen/resident then he/she can execute POA from his/her country of residence and get it notarized and attested from local Notary and Consulate Officer. The same then is required to be Adjudicated from local Collector. Then on its basis the attorney can get or transfer immovable property.
So in your case the POA can be executed in USA in the above mentioned manner and then sent to India for further procedure.
Dear Client,
Sale through POA is valid, ask them to execute POA at Indian Embassy and get it re register at sub registrar office, India where property situated.
Transfer of money after deduction of TDS can be done to POA holder or in their single or joint account as they want.
22% deduction of total amount, if sale above 50 lacs.
1. "Separate & Individual" POA must be duly attested by the Foreign consulate of the NRI persons.
2. Payments must be made separately to the NRI persons.
3. TDS must be deducted separately from the NRI persons.
Keep Smiling .... Hemant Agarwal
Yes it can be done through specific POA. Yes if money is paid to them differently them TDS will be deducted separately.
1. They both can jointly execute a POA deed in favor of their close relative in India to complete the task on their behalf.
2. Yes, they can execute a special power of attorney in favor the power agent.
3. It can be done to their joint account or to their individual accounts separately also as per the terms agreed with them.
4. Yes.
Dear All, Thanks for your earlier answers, i have one more question pertaining to the POA (given to family member) The POA received by the NRI seller has been attested by Indian Embassy, then there has been a stamping of INR 500 and then has been notarized. I am a bit confused if i need to ask the seller to get the POA registered ? I spoke to the property registration guys here in Mumbai and they said that registration is not compulsory as the POA has been given to blood relative and the registration of sale deed can be done basis the same.(some latest amendments have happened to earlier rule apparently) I need your help to understand what should i do here ? The articles on the internet are very confusing. Below is one such article from http://www.landsofmaharashtra.com/powerofattorney.html Registration and stamp: In many cases, a general or specific power of attorney need not be registered. The question of registration arises only if a power is given for the sale of immovable properties. In Maharashtra, if a power of attorney is donated other than close family member for sell of immovable property it must registered with Registrar and not Notary. A power of attorney is to be register at the office of the sub registrar within whose jurisdiction the person giving the power resides at the time of execution of the document. Also it will impound Stamp duty @ 5% of market value of the scheduled Property. If it is Family Power of Attorney (donated to close family member -blood relative) then it should be on stamp paper of value of five hundred rupees and it must be register before Notary Public. It can be also be register at sub registrar office within whose jurisdiction the person giving the power resides at the time of execution of the document. Under the Bombay Stamp Act (in Maharashtra) a power of attorney given to a promoter or Builder for development of property is required to be stamped as a conveyance as per the market value of the pro
Sir registration is not required in case of blood relative notarized POA shall do further take life certificate of principal along POA.
Registration of specific POA executed in favour of family member duly attested before Indian consulate is not mandatory
Yes the poa has to be stamped as well as regsistered
The power of attorney deed for immovable property need to be a registered document.
Since there is no stamp duty payable in Maharashtra for transfer within relatives, the Rs. 500/- stamp paper will be sufficient for registering the document.