Hi, It is better your brother can execute a General Power of attorney in favour of you so that on the basis of the General Power of Attorney you can register the property in his name.
My brother stays out of India. I have finalized a flat for him and now he wants to buy that. But he can't come to India in near future. What is the process of buying a flat he without coming to India. Can I buy flat on behalf of him? If yes, what is the process?
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Hi, It is better your brother can execute a General Power of attorney in favour of you so that on the basis of the General Power of Attorney you can register the property in his name.
1) your brother can execute POA in your favour
2) have it attested before Indian consulate
3) on receipt of POA yiu can register it
4) then purchase flat on your brother behalf
Procedure to buy a flat or property on behalf of someone not available to complete the legal formalities, the next of kin on their behalf can take a General Power of Attorney duly executed by your brother in this case, attested by the Indian embassy of that country where he lives and getting it adjudicated here in India once it is received by you, this document entitles you to deal with the properties anyway your brother intends you to act upon.
I have a follow up question. I read a 2011 Supreme Court ruling that "Property sales through the common practice of general power of attorney (GPA) will not give ownership title to the buyer." I am confused. Can anybody educate/clarify me on this. http://indiatoday.intoday.in/story/property-sale-through-gpa-not-valid/1/154711.html
The SC judgement does not bar power of attorney being given to family member
2) on basis of POA you can purchase flat on behalf of brother by regd agreement
If a Power of Attorney is executed in favour of stranger involving the sale or purchase of an immovable property then such an instrument must be compulsorily registered, otherwise such transaction will not be valid and binding thereon.
Here the distinction is that the POA is being executed in favour of a blood relative (brother) this document is notarized in the country where the executant is presently residing and after it is received in India by the Attorney it will be adjudicated as per Indian Stamps and Registration Act. Such transactions are permitted and valid in India.
1. Your brother can execute a POA in your favour and get it registered/notarised before the appropriate officer of the Indian Consulate of his place,
2. With the help of the said POA, you can execute and register a sale deed in favour of your absentee brother while buying a Flat in his name.
1. That Supreme Court Judgment was in connection with sale through POA in favour of non related persons (i.e. developers),
2. It is not applicable in your case since your brother is really out of the country and the POA will be notarised before the Indian Consulate abroad.
Hi, The 2011 Supreme Court Judgement Will not applicable to your facts and circumstance of the case.
My brother stays out of India. I have finalized a flat for him and now he wants to buy that. But he can't come to India in near future. What is the process of buying a flat he without coming to India. Can I buy flat on behalf of him? If yes, what is the process?
Yes you can purchase property on behalf of your brother.
You may ask him to execute a power of attorney deed in your favor and get it notarised by a notary public of that country and get it apostilled by the official of Indian consulate or can get the GPA deed attested by the Indian high commissioner f that country or by an India Embassy higher officer of hat country. and send it by a sealed cover which shall be opened by the concerned registrar and after getting your signature signed before the registrar, you can get the deed registered after which you can act as a an agent of the buyer for all such actions including buying the property and signing the papers for registration of the sale deed document on behalf of your brother as his power agent.
I have a follow up question. I read a 2011 Supreme Court ruling that "Property sales through the common practice of general power of attorney (GPA) will not give ownership title to the buyer." I am confused. Can anybody educate/clarify me on this.
The supreme court ruling is for the party who would like to acquire the property on the basis of power of attorney deed, wherein instead of getting a registered sale deed executed in his favor to avid stamp duties meant for registration of the sale deed document.
This ruling is not applicable to your case because you are purchasing the property by a registered sale deed on behalf of your brother acting as his representative through a power of attorney deed executed in your favor.
Therefore there is no need to be concerned about this.
Your brother can execute a GPA in your favour to authorize you to purchase the property on his behalf. The said GPA would have to be attested by the Indian Consulate and only thereafter you can act thereon.
The SC judgment does not restrict executing a GPA to authorize the sale. It only declares the passing of title through GPA as illegal.