How can NRIs in Canada utilize Power of Attorney for property transactions in India?

Answered by

A Agarwalla & Co.

Published At June 19, 2024

Answer

Non-Resident Indians (NRIs) in Canada can effectively manage property transactions in India through a Power of Attorney (PoA), a legal document allowing them to appoint a representative to act on their behalf. Here are the key steps and considerations:

  • Drafting the Power of Attorney: The first step is to draft the PoA, clearly stating the specific powers being granted to the representative. This may include buying, selling, leasing or managing property in India. It is advisable to consult a legal expert to ensure the document complies with Indian laws.
  • Notarization and Attestation: Once the PoA is drafted, it must be notarized by a local notary in Canada. Following notarization, the document needs attestation by the Indian Consulate or Embassy in Canada. The attestation process involves verifying the document’s authenticity and the identity of the NRI.
  • Registration in India: Upon attestation, the PoA must be sent to India, where it should be registered with the local Sub-Registrar’s office where the property is located. Registration is crucial as it provides legal validity to the document in India.
  • Using the Power of Attorney: The appointed representative can now act on behalf of the NRI for property transactions as specified in the PoA. This includes signing documents, handling legal formalities and completing transactions.
  • Revocation of Power of Attorney: If necessary, the NRI can revoke the PoA. The revocation must also be notified to the Sub-Registrar and the representative to prevent misuse.

Using a Power of Attorney by NRI helps streamline property transactions in India, providing a practical solution for NRIs to manage their properties efficiently without being physically present.