A Special Power of Attorney (SPA) for property dealings is a legal document that authorizes another individual (referred to as the attorney-in-fact or agent) to act on your behalf for specific property-related matters. This document is crucial for ensuring smooth property transactions, especially when the principal cannot be physically present. Below is a comprehensive guide to the essential information and procedures required for drafting and executing a SPA for property dealings.
1. Title and Declaration
- The document must clearly state “Special Power of Attorney” to distinguish it from a General Power of Attorney.
- Include a declaration identifying the principal (the person granting authority) and explicitly state their intent to authorize the agent for specific property-related transactions.
2. Details of the Principal
Provide the following details about the principal:
- Full Name
- Current and Permanent Address
- Contact Details (phone number and email)
- Valid Identification Details (such as Aadhaar, PAN, Passport, or OCI Number)
3. Details of the Agent (Attorney-in-Fact)
Include the following details about the authorized individual:
- Full Name
- Current and Permanent Address
- Contact Details
- Valid Identification Details (such as Aadhaar, PAN, or Passport Number)
4. Specific Property Details
The SPA must include detailed information about the property involved, such as:
- Property Type (residential, commercial, agricultural, etc.)
- Full Address (e.g., Flat Number, Apartment Name, Village Name, Hobli, Taluk, and District)
- Measurement (e.g., Carpet Area, Built-Up Area, Super Built-Up Area, and Undivided Land Share)
- Survey Number, Conversion Order Number, and eKhata Number (if applicable)
- Boundaries (East, West, North, and South)
- Ownership Details, including registration number, book number, year of registration, and date of registration.
This ensures there is no ambiguity about which property the SPA pertains to.
5. Scope of Authority
- Clearly define the specific actions the agent is authorized to perform. For example, “Presenting the Sale Deed for registration at the sub-registrar’s office.”
- Clearly outlining the agent’s scope of authority helps prevent misuse or overreach.
6. Restrictions or Limitations
- Specify any limitations on the agent’s authority, such as prohibiting them from selling the property, transferring ownership, or collecting payments from the buyer.
7. Duration and Validity
- An SPA typically remains valid until the specified transaction is completed. However, you may choose to define a specific validity period.
- Example: “The SPA is valid until the specified Sale Deed Registration is completed.”
8. Procedure for Execution
If the SPA is Executed in India:
- Draft the SPA and print it on document paper.
- Signatures: Both the principal and the agent must sign the SPA on all pages.
- Witnesses: The SPA should be signed in the presence of at least two witnesses, whose details (name, address, and signature) must be recorded.
- Registration: For property-related transactions, registration at the nearest sub-registrar office is mandatory.
If the SPA is Executed Abroad (for NRIs):
- Draft the SPA and print it on bond paper.
- Signature: The principal signs the SPA on all pages.
- Witnesses: The SPA should be signed in the presence of at least two witnesses, whose details (name, address, and signature) must be recorded.
- Notarization: Notarize the SPA by a notary public in the country of residence.
- Attestation: Attest the SPA by the Indian Embassy or Consulate in the country of residence.
- Send the Attested SPA and signed Sale Deed to India.
- Adjudicate the SPA in the District Registrar’s office in the jurisdiction where the property is located.
9. Case Study: NRI SPA Execution
• Our recent transaction involved an NRI from North Carolina, USA, who executed a SPA to authorize his father-in-law to complete a property sale in Bangalore.
• The SPA was notarized in North Carolina and adjudicated the Stamp Duty in the District Registrar’s office in Bangalore. Refer to the below SPA
The principal sent the signed Sale Deed from the NC, USA to India, and the father-in-law presented it at the sub-registrar office in Bangalore for registration. Refer to the below registered Sale Deed
10. Revocation Clause
- The revocation of an SPA must be communicated in writing and registered with the appropriate registrar’s office.
- If the SPA needs to be revoked before the specified task, follow the procedure below.
Procedure for Revocation of SPA
If the Revocation SPA is Executed in India:
- Draft the Revocation SPA and print it on document paper.
- Signatures: Both the principal and the agent must sign the revocation SPA on all pages.
- Witnesses: The revocation SPA should be signed in the presence of at least two witnesses, whose details (name, address, and signature) must be recorded.
- Registration: Register the Revocation SPA at the nearest sub-registrar’s office.
If the Revocation SPA is Executed Abroad (for NRIs):
- Draft the Revocation SPA and print it on bond paper.
- Signature: The principal signs the revocation SPA on all pages.
- Witnesses: The revocation SPA should be signed in the presence of at least two witnesses, whose details (name, address, and signature) must be recorded.
- Notarization: Notarize the revocation SPA by a notary public in the country of residence.
- Attestation: Attest the revocation SPA by the Indian Embassy or Consulate in the country of residence.
- Send the Attested Revocation SPA to India.
- Adjudicate the Revocation SPA in the District Registrar’s office in the jurisdiction where the property is located.
- If the agent does not cooperate with the revocation, the SPA can still be registered or adjudicated without their presence at the sub-registrar or District Registrar’s office.
Conclusion
By following the above guidelines, you can ensure that your Special Power of Attorney (SPA) for property transactions is valid, clearly defined, and enforceable. Whether you are in India or abroad, understanding the process and including all necessary details will help you avoid complications and ensure a smooth property transaction.
If you need professional assistance with drafting, notarizing, or registering an SPA, feel free to reach out to us. We’re here to help!
Contact Us:
Phone/WhatsApp: +91-9742479020
Email: pgnproperties@gmail.com
