This article will help you to understand the value of hiring an attorney for abroad accounts and assets. However, you need to pay a professional price for hiring attorneys with regard to a legal issue. Read on to know more!
Reasons to hire an Attorney for your NRI Accounts: If managing your property in India while you are living NRI has become challenging for you, a power of attorney (PoA) is the best instrument for you. Due to its various benefits, POAs are commonly used even by resident Indians. It is difficult for people who have a lot of possessions to be physically present anywhere. As a result, they execute POAs to assign the duty.
In this blog you’ll know about the Reasons to hire an Attorney for your NRI Accounts.
Types of PoA: What Do You Need To Know?
In its most basic form, it might be defined as the authority (right) that a patron (principal) grants to a lawyer (a legal representative). The two form a principal-legal representative relationship in which the principal is obligated by the legal representative’s actions.
Registered power of attorney can be used to assign these rights and obligations to any relative or friend. For example, if the individual who purchased the property in India is unable to be physically present to complete the registration process, they can assign someone else to take care of it legally.
Here are 3 types of PoAs –
- Special PoA: In a special PoA, the agent’s authority is constrained and limited to a particular objective. A specific POA might be transaction-specific and end after the transaction is complete
- General PoA: Under a General Power of Attorney, the representative is given extensive authority to act on the principal’s behalf. Additionally, the representative is free to engage in any activity on behalf of the principal without any transactional restrictions
- Durable PoA: Unless expressly rescinded, a durable POA is in effect forever. The document may contain a particular clause declaring that the representative’s authority shall survive the principal’s incapacitation.
How A Power Of Attorney Is Hired In India?
An NRI Account who is physically present in India may sign the Power of Attorney there before leaving for another nation. This is how it can be done:
- Method 1: The NRI Account must have the relevant PoA content typed up on non-judicial stamp paper with an appropriate value, usually ₹100
- Method 2: At this point, the person must go to the Sub-Office Registrars with the legal representative and two witnesses
- Method 3: Ensure that everyone travelling to the Sub-Office Registrar has a valid form of identification with them. Along with the original document, a photocopy of the PoA must be brought
- Method 4: The party’s signatures, photos, and fingerprints will be taken at the Registrar’s Sub-office
- Method 5: At this point, you have until the deadline to pick up the registered POA from the Sub-Office. This could take between three and five days once the legalities are finished.
What If For An NRI?
You can sign a POA through the Indian Embassy or Consulate in your own nation if you reside abroad and won’t be able to go to India anytime soon. There are two ways to carry out a POA while travelling abroad:
In this case, before the PoA is signed, the notary’s or judge’s signatures must be validated by a fully authorised representative of the Indian Embassy or Consulate. According to Section 3 of the Diplomatic and Consular Officers (Oaths and Fees) Act, 1948, a competent member of the Indian Consulate or Embassy may notarise a deed. When a PoA of this sort is executed, it is not essential to stamp it. However, it needs to be stamped no later than three months after India received the PoA. Stamp duty is due under Section 2(17) of the Indian Stamp Act, 1899, read with Schedule-I, when the deed is presented for registration in India.
The Apostalisation procedure required to demonstrate a POA that was executed outside of India is governed by the Hague Convention, 1961. Apostille, also known as super legalisation, is a certificate that confirms and attests to the signature or seal of the document. The Power of Attorney Act of 1882 and the Indian Registration Act of 1908, as well as any other applicable Indian laws, must be complied with as well.
Regulation of PoA
A PoA paper should be carefully studied to ensure that it contains all the necessary authority. No rights other than those expressly mentioned in the POA should be inferred, and the POA must be read strictly. For instance, if the POA refers to the “right to lease,” the “right to sell” cannot be attributed to the POA.
The representative must behave within their authority and is not permitted to bind the principal by taking any activities that are not within that authority. You, as an NRI Account, cannot be held accountable for the scam or sued unless it can be shown that the agent did it with your knowledge.
Power Of Attorney Cancellation
If the principal thinks the legal agent is misusing his power or is unable to perform the obligations assigned to him, he may withdraw the Power of Attorney (PoA). If the principal thinks he is now in a position to manage his assets, the revocation may also be requested.
How Is A Power Of Attorney Revoked?
Here are the steps involved in revoking a PoA:
- A PoA is revocable once in your lifetime
- When the principal passes away, develops a mental illness, or is found to be insolvent, PoA is likewise canceled
- The principal and the agent may agree to revoke the PoA at any time
- When the particular transaction for which a PoA was performed has been completed, the PoA is canceled.
Conclusion – Reasons to hire an Attorney For Your NRI Accounts
There are various situations where individuals choose to use a PoA to sell a property rather than paying unauthorized stamp duty. When the owner has a right to possession but no title to ownership, selling real estate through a PoA is illegal as well. A legitimate transfer of ownership cannot take place if a PoA is used to complete the transaction rather than a sale document. Hope this blog regarding reasons to hire an power of attorney for your NRI Accounts was helpful. If you wish to appoint a PoA legally in India to sell a property here, you can take help from the legal experts of Vakilsearch.