A power of attorney (POA) is a legal document that authorizes a person to act on someone’s behalf in private, commercial, and legal affairs. The authorizing party prepares and signs the POA and authorizes a second party to act as an agent, donor, or principal for decisions related to the authorizing party’s affairs. POA is a powerful document that enables a person to transfer their decision-making power to another person without transferring any liability. With the signage of the POA, The agent and grantor enter into an agreement that is enforceable in jurisdictions across the country and around the world.
Power of Attorney is a significant legal document that transfers the “power” from one person to another. It is used by thousands of people for many purposes such as:
- Managing disputes
- Mortgage and sale of assets
- Bank and insurance affairs
- Bond deals and contractual agreements
- Healthcare decisions
- Asset management and stock-portfolio management
Among the many types of Power of Attorney, including Durable Power of Attorney, and Limited Power of Attorney, the one most in use right now is the NRI’s Power of Attorney.
Power of Attorney for NRIs
Indian citizens worldwide can use a Power of Attorney in lieu of their absence in the country. Property lawyers Chandigarh serve an exclusive clientele of NRIs who have invested in an agent and a PoA. Non-resident Indians (NRIs) use a POA to control their assets in India. NRIs don’t have to be physically present in India to sign legal documents or financial transactions. Property disputes in India can escalate at an alarming rate. They can sit back and let the person with the POA handle their business for them.
A Power of Attorney serves many purposes for NRIs who own property in India. It is the recommended solution for solving most types of property disputes in India. It is an objective-driven legal agreement that enables the person in charge (agent) the power to sign legal tenders, file taxes, and enter into contracts with parties in India.
As per the best law firms in Chandigarh, PoA is an essential order of business for NRIs who own property in India. NRIs signing away the Power of Attorney are referred to as grantors, and the person taking over the responsibility is referred to as the agent. This agreement comes under the jurisdiction of the Registration Act, of 1908.
Registration Act, 1908
The Registration Act, 1908, states that if an NRI enters into a real-estate transaction in India, both parties must register their physical presence for the document to be legally binding. In lieu of this, NRIs can install a Power of Attorney to carry out their legal tenders for them. As per the act, the agent, in accordance with a lawyer in Chandigarh, must be registered with the respective sub-registrar. The Power of Attorneys must also be certified by the Embassy of the NRI’s present residing country.
The Significance of a POA for NRIs:
- It is the foremost requirement to settle property disputes
POA is the way that NRIs can carry out property transactions without having to come to India. It is a convenient option for NRIs who wish to carry out their property dealings and real-estate business in India without stepping foot in the country.
- It is required for most loans/bank dealings:
Most lenders and bank transactions require the physical presence and sign from both parties to execute any transaction related to long-term loans. This can become a cumbersome process and a burden for NRIs and global citizens. A Power of Attorney authorizes the agent to sign loan documents with the bank.
- It is a convenient extension of authority
A PoA is a legal document that authorizes NRIs to install another person to make decisions on their behalf. Agents can act on behalf of the grantor, which frees them from looking at petty details of a contract and spending time and energy on the fine print.
- It registers an essential presence of a shadow
A PoA creates an important figure of authority in the country. While overseeing many transactions, it is common to miss out on the details. Not everything can be authorized via a zoom call. A PoA is a critical figure who acts as a shadow for the NRIs who are managing the assets from thousands of miles away.
- The agents are often experts at market dealings
Most agents are experts and trained professionals who understand the market far better than the NRIs and have the capacity to make decisions based on first-hand inspection and experience. Agents cut the best deals and garner the most lucrative options for their grantors.
The Caution with Power of Attorneys for NRIs
Electing a Power of Attorney and picking an agent is a mighty step that must be taken with much thought and deliberation. The agent, upon entering the agreement, gets the foremost power to enter into transactions and make deals on behalf of the grantor. The circumstances, which mostly happen in the absence of the grantor from the country, can escalate with quickness. Therefore, the selection of an agent and clauses of the Power of Attorney must be a point of contention for the grantor.
The agent must be:
- Vetted, authorized, honest, and talented
- Years of experience in the field
- Knowledge of law, legal tenders, and common property laws of India
- Knowledge of the common laws of asset management and ownership
- Access to the best property dealers and reputed real-estate developers
- Sound knowledge of laws pertaining to taxation of NRI assets
- A spotless record with a primary bank of the party
- Have a clientele and knowledge of the market
- Street smart and responsible
An NRI has plenty of stuff to deal with. Matters of property disputes for land situated thousands of miles away should be the last of their worries. An impressionable and legally enforcing Power of Attorney cuts this headache in half and enables the NRIs to conduct their business in peace.