Can father make property deal on behalf of his NRI son?
My son is working in Kuwait and wants to buy some property in Solapur, Maharashtra. He is transferring money in his NRE account in bank at Amreli, Gujarat State, and regularly transfer required amount in my account to pay the installments for this property.
My question is: Can I make payment from my account by cheque for this deal or not? What will be the consequences?
I will be highly obliged on receipt of Lawful advice from you end.
Asked in Property Law from Amreli, Gujarat
1) your son can execute POA in your favour so that you can execute agreement for sale /sale deed on his behalf with the seller
2) if you are duly authorised by your son you can make payment on his behalf
There is nothing wrong in paying the installments from your bank account but you may maintain a separate account of all such payments made and the source of income for such payments as well as the reason for making the payment from your side on his behalf.
You may consult an auditor for taxation and IT returns issue involved in such transactions.
The property which you are buying should ideally be bought in joint names of you and your son as all the payments will be done from your account. In case the property is bought only in the name of your son and the money is paid from your account , you will have to disclose the source of money at the time of filing of returns.
A. Any property can deal on behalf of your NRI son if the GPA duly executed the same in favor of father to do act with respect to buying property.
B. Transfer of money through NRI account bank that you need to get confirmation from the bank. The property can be registered in the name of the NRI, and the power of attorney holder can sign on his behalf by producing a copy of the power of attorney to the appropriate authorities.However, a NRI needs to comply with the requirements imposed by the Reserve Bank of India (RBI).
1) There's no hassle about funds being transferred from your account for your son's deal as the source can always be traced to your son.
2) As long as funds are available you shouldn't have any legal problems issuing payment by cheques.
1. Yes, you can make payment from your a/c
2. You can purchase this property on his name if he executes a power of attorney in your name.
1. As per Contract Act, both the parties of a contract must exchange consideration i.e. the seller will transfer title of the property when the buyer will py the money,
2. In the instant case, your son is getting the title conveyed in his name but is not paying for it which yiu bare paying,
3. To regularise this anomaly collect a POA from him authorising to sign while registering the sale deed in his name and pay from your Bank account where he will remit the said consideration,
4. Preserve the records of his such remittance of the consideration for future use.
Hi, you can make the payment of money through your account on behalf of your son.
1. The consideration of the property to be purchased may move from either the prospective buyer or anyone on behalf of the buyer.
2. Before you remit the consideration of the property let your son execute a POA in your favour to authorize you to remit it. The POA will have to be attested at the Indian Consulate in Kuwait.