Managing Property in Telangana from Abroad: NRI's Guide to Power of Attorney

Property investment in India is a lucrative opportunity, especially for NRIs. However, their management can be tricky for them since they are far away. This is where power of attorney for NRIs becomes a boon for property management in Telangana, allowing them to legally hold property in India which is being handled by a reliable person legally. This person gets the responsibility of making vital decisions in the absence of the owner, and handles all transactions. Their importance is indisputable, as is their role in minimizing stress for the NRIs. 

Understanding PoA and its Importance 

A Power of Attorney (PoA) is a legal instrument where one person, known as the principal, gives authority to an agent to act on their behalf. For NRIs, this is usually the most practical way to manage property in Telangana if they are not frequently flying back and forth.

What makes a PoA so invaluable for NRIs?

It's simply the fact that these professionals allow you to purchase or sell property while you are abroad. They also handle all registrations or other formalities with the government. With a PoA, NRI property management services can also encompass handling rental arrangement, tenant disputes, maintenance, as well as management of loan or EMI or utility bills relating to the property.

Understanding Types of PoA

Power of Attorney is not a uniform concept that grants every PoA the same authority. The kind of PoA you will need depends on the scope of authority you are comfortable giving your representative. The following are the main types:

General Power of Attorney 

This allows broad power such as buying, selling, leasing or mortgaging property. If you want your representative to manage everything about your property, you will need to opt for GPA. This is normally used to manage circumstances when you are away for an extended period of time or when you want someone to manage the property all together. 

Special Power of Attorney 

This type of PoA is limited to one task, which is to sign the sale deed and registry. If you want a more controlled delegation, this is the better choice as the SPA only extends a single responsibility and restricted timelines. 

Common Tasks PoA’s Handle

Wondering what all your PoA will do for you? Their scope of services encompasses a range of tasks such as managing property while you are abroad, reducing stress and taking on your role. They can, on your behalf, sign sale agreements and any registration documents, apply for and receive mutation certificates, pay any property taxes and utility bills, enter into rental or lease agreements, appear before any court or additional government office on your behalf, and collect possession or hand over a property. 

Steps to create Power of Attorney for NRIs

The process of executing a valid PoA while living overseas has layers of legal obligations you need to adhere to. Here's an easy checklist on how to get started:

Step 1: Draft the PoA Document

The first step is to either hire a lawyer or use a legal drafting service to draft your PoA document. It is important that the PoA document includes: the full name and details of both the principal and agent, the specific powers listed, the full address and survey number, and duration of the powers and the correct revocation clauses.

Step 2: PoA Notarization and Courier

Once you have the PoA drafted, you can then: go to the Indian Embassy or Consulate in the country where you live, sign the PoA in front of the officer at the embassy, and get it attested and stamped. Then, courier the attested PoA to your agent or legal representative in India.

Step 3: Adjudication in Telangana

Once the PoA is received in Telangana, your agent must file to the District Registrar within 3 months, and pay any stamp duty, which is usually rupees 100 or more, depending on the task. The document will be adjudicated and legalized for use. 

Stamp Duty and Registration Rules in Telangana

Unlike sale deeds, PoA does not attract heavy stamp duty, particularly if it is granted to family members. PoA for family members to act to manage your property comes with a 100 ruppes stamp duty. PoA for family members involving financial dealings can attract a higher stamp duty. Registration of PoA can be optional in case of SPA but mandatory in case of GPA involving the transfer of property.

Revoking or Updating a PoA

Circumstances change and your PoA must keep up. Whether there are personal issues, or new demands arise, it is good to have the option to revoke or update the PoA. Revoking a PoA demands drafting a deed of revocation, having it notarized and registered, and notifying the former agent and any other interested parties. It is also possible to include an expiration date when you draft the original PoA to make things simpler. 

Explore Aparna Sunstone 

If you are an NRI looking for a property to seamlessly manage through your PoA, explore our world-class project- Aparna Sunstone, the most exquisite apartments for sale in Gachibowli, Hyderabad. This gated community project has been designed in Aparna Deccan Town, and offers luxurious 3 BHK apartments across nine high-rise towers. With this project, management of property becomes seamless with our clear cut documentation, which makes the process simple. Even if you are not here to complete the transaction, your PoA can handle everything with ease. 

Conclusion 

For NRIs, investing in India’s evolving real estate sector is a very attractive opportunity which comes with lucrative returns. However, it is not always possible for everyone to frequently visit India to complete formalities or handle everything that is to do with the property. As such, a PoA becomes the perfect solution, handling everything as needed, acting on your behalf and within certain acting capabilities. For those that desire to have a thriving real estate investment portfolio in India, while enjoying their peace and handling life overseas successfully without the burden of property management complexities, PoAs are the perfect solution.