NRI Property Purchase, Assignment Agreement and POA
I am purchasing a property from an NRI couple based out of the UK and below are the details related to the transaction that is happening
- There are three parties in this transaction
B - Builder
S - Seller
M - Myself
- The property is NOT yet registered in the husband and wife's name
- They have made an "Agreement to Sell" with the builder
- They will not be coming to India to do the "Assignment Agreement" (or "Transfer Agreement") in my name
- Assignment Agreement will be a triparty agreement between Builder (B), Seller (S) and Myself (M)
SCENARIO 1
- The process that will be followed is -
(i). I will sign the document (i.e Assignment Agreement)
(ii). The document will be couriered to the UK for the Seller's (S) signature,
(iii). Sellers (S) will again courier back the signed document to the builder (B), who will then sign the
document
(iv). Finally, builder (B) will get the FRANKING done on the document
(v). Post the assignment agreement with the seller (S), the builder (B) will finally do the sale deed
with me (M) which will be registered in the Sub Registrar office
Ques 1 - Is this process legally valid? If YES or NO, why? Please explain
Ques 2 - Is it not necessary for the assignment agreement to be registered in the sub-registrar office? If not, why?
Ques 3 - My Doubt - If someone is signing a property document in a foreign country (UK) and that document is not registered in India (remember only franking is being done and not registration), then how come the document is valid?
(Note: As per my understanding, franking means stamping the assignment agreement which confirms that I have paid the stamp duty charges)
SCENARIO 2
In case the sellers give the POA (Power of Attorney) to the wife's blood relative in India, he/she has the authority to sign the assignment agreement (please correct if my understanding is wrong)
Ques 4 - What is valid for this scenario - only FRANKING of the assignment agreement is fine or does the assignment agreement need to be registered in front of the sub-registrar?
Please share any other info that might be relevant for this scenario
Ques 5 - What problems (if any) can I face in the future in both the scenarios, if I want to resell the property to somebody?
Asked 1 year ago in Property Law
Religion: Other
Note:
The property does not have a loan on it
@T Kalaiselvan
If the builder is getting the tripartite agreement franked subsequently then to what extent is getting the franking of stamps
I did not understand this statement, request you to explain
@Prashant Nayak
What is an indemnity bond? How it is useful in this scenario? Who will prepare this and whose signatures will be on this?
@Ajay Sethi
You are saying that seller should sign the document in Embassy and then document should be registered. Didn't understand this sir
If we are sending the document to seller's signature in UK, how come it will be registered in India without their presence? As per my knowledge, all the parties need to be present physically to get the document registered.
Please clarify
Regarding the special power of attorney (SPA), how much is the stamp duty if the husband gives it to sister in law (i.e. not a blood relative). Also, after getting the SPA from both the sellers (husband and wife), is the sister allowed to sign on the assignment deed?
@ ALL
Ques 6 - If we don't go by the SPA route, and follow the SCENARIO 1 (pls chk the original question), can the seller claim in future that since they were not physically present in India to sign the document, the transaction is not valid? In other words, can they stake a claim on property afterwards in SCENARIO 1?
Asked 1 year ago