Purchase of Property from NRI represented by a broker with POA
Is the purchase of an Apartment from NRI who is unable to present himself for registration, and has suggested that he shall be represented by a broker with a power of attorney legal ??
If yes what care should be taken ??
Asked 12 months ago in Property Law from Thane, Maharashtra
1) POA executed by NRI for sale of property should be attested before Indian consulate
2) POA should be registered
3) POA holder can sell the property on behalf of the NRI
First of all obtain all the property documents, scrutinise them through an advocate, get a legal opinion, if the opinion about the property is okay then you may proceed. The power of attorney deed should be registered before the concerned registrar or else the power is not valid and the agent is not empowered to transact on behalf of the principal.
A person can either execute the sale deed himself or he may execute a GPA in favour of a relative to authorize him to execute the sale deed in favour of the buyer. Get the POA vetted by a lawyer.
Registration Office in Thane has told us that POA should be in the name of a blood relation, otherwise the registration of POA in India shall attract stamp duty @ 5% of property value, which is prohibitive. Other option given to us is to execute Agreement to Sale, and that document after registration in India can be sent abroad for signatures of sellers before consular officer for the attestation.
What is your opinion??
Asked 12 months ago
1) POA should be in favour of family member
2) have it attested before Indian consulate and then regd in India
If you feel that this is a cumbersome process involving lot of risks in it why do you want to go for this particular property, otherwise you take the help of an experienced advocate who shall guide you properly on further steps in this regard.
It is not a bad idea that the sale agreement to be sent to the vendor to the foreign country of his residence and get it attested from the Indian consulate of that country, but what about the sale deed to executed at a later stage, will you be able to process the same in the same manner?
My opinion echoes the opinion that has been relayed to you. The POA ought to be in favour of a blood relative.