Special Power of Attorney (SPOA)
A special power of attorney is a legal document that authorizes one person, called an agent or an attorney in fact, to act on behalf of another person, known as the principal, under specific, clearly laid-out circumstances.
Context: NRI (both husband and wife) lives in Sydney, Australia. They own a 2BHK flat in Bangalore, and want to sell this flat to reinvest in new property
NRI is not able to come to India for registration of sale deed in sub-registrar office, so they decided to give a power of attorney (POA) to a friend in India. When we give POA to friend who is a non-blood relative, the stamp duty is 5% of property value or guidance value, whichever is higher.
To reduce the stamp duty, we suggested to give SPOA. The stamp duty for SPOA is just Rs. 200 irrespective of relationship and property value (Edit on 9th Dec 2024, the revised Stamp Duty is Rs. 500)
NRI followed below steps to give SPOA to a friend in India
Step 1: Found the buyer to purchase the flat
Step 2: Drafted the SPOA and sale deed with the help of an advocate
Step 3: Printed the SPOA and sale deed draft on document paper
Step 4: NRI signed the SPOA on all pages and two witnesses signed at last page of SPOA
Step 5: NRI (Seller) signed sale deed
Step 6: NRI met the notary public near their place in Sydney and got the SPOA attested by notary public
Step 7: NRI couriered the SPOA and Sale deed to friend in India.
Step 8: The friend in India, carried the following documents to District Registrar’s office (DRO) for SPOA adjudication
- SPOA and Sale deed which came from Australia
- Photocopy of NRI’s OCI and PAN
- Photocopy of friend’s aadhaar
- Stamp duty payment (Khajane -2 challan)
In my case, the property is located in Kaggadasapura village, Bangalore. The Kaggadasapura village comes under Shivajinagar District Registrar office (DRO), we adjudicated the SPOA in Shivajinagar DRO.
Below is the image of SPOA which we attested in Sydney and adjudicated in Bangalore:
Below is the image of sale deed which NRI signed and sent along with SPOA from Sydney
We used the above SPOA and sale deed to sell the property in Bangalore, India.
Note:
- In the above answer, friend is referred to an agent or an attorney of the SPOA.
- Unlike POA and GPA, we should find buyer for the property before we execute SPOA because we should present the signed sale deed along with SPOA for adjudication in DRO.
- SPOA attestation by notary public is accepted for deed registration, attestation from Indian embassy is not mandatory.
- If we refer to the above sale deed, that kind of document paper was not available in Sydney, we couriered the document paper to Sydney for buyer to take print and sign. However it’s not mandatory to use above-mentioned document paper, they could have used any A4 size around 150GSM paper
- If you refer to the above SPOA, there are two Principal (Husband & wife), the stamp duty payable is Rs. 200 per principal so we paid the total of Rs. 400 as Stamp duty, refer to below payment challan
(Edit on 9th Dec 2024, the revised Stamp Duty is Rs. 500 per principal)
We provide assistance to execute SPOA. To opt for our service, please write to us pgnproperties@gmail.com or WhatsApp to + 9 1 – 97424-79020
Thank you for reading…