Once the home loan is paid off, the bank will send a loan closure letter to your registered email ID
The loan closure letter looks like the below image
Tell the bank in the same email that you live abroad and want to use a Power Of Attorney (POA) to collect property documents.
Please note the below mock response to the bank:
The bank will schedule a time to collect property documents and send an email with a POA format; typically, the bank provides an appointment within 15 working days
For example: The appointment date for document collection would be August 16th if the bank had issued an email confirming the appointment on August 1st.
Though the appointment date is August 16th, most banks allow for an additional 30 working days as buffer time
You should not panic if you miss the appointment date because, in some countries, it can be challenging to obtain the POA within 15 working days. This is why we mentioned about buffer period.
We are sharing the approximate timeline and process for carrying out the POA from abroad:
Day 1:
The bank emails a Word document with the POA format. The POA’s majority of terms remain the same; we only need to add necessary details like;
- Name, Age, Name of Father or spouse, Residential address, Loan account number and property schedule
- Print the POA draft
- Affix passport-size photo
Day 2:
Make an appointment with your country’s notary public. Most of the time, notary appointments are scheduled for the same day, however in the few USA and European countries, appointments must be scheduled at least three or seven days in advance.
Let’s consider the notary appointment takes, an average of 5 working days (from day 2 to day 6)
Day 6:
- Meet the notary public and sign the POA in front of Notary
- Notary attest and sign the POA
Once the notary is done, send the following documents to India that same day:
- POA
- Two sets of Self-attested identification proofs (Passport/OCI and PAN). One for adjudication in District Registrar’s office and another for document collection in bank in India
DHL/FedEx typically delivers packages in 5–7 business days. while the majority of other shipping firms require 10–15 working days
Let us consider an average of 10 working days for shipment (from day 6 to day 16)
Day 16:
The package arrives in India. let us consider the package arrived in the afternoon
Your POA holder (the person you granted the POA) in India opens the package, affixes his/her passport-size photo, and signs the POA
Print a copy of a letter requesting a POA adjudication from the district registrar’s office. Please review the sample request letter below
Print a copy of POA holder identification proof (Aadhaar and PAN)
Day 17:
The following documents are brought to the District Registrar’s office (DRO) by the POA holder:
- POA (came from abroad)
- Self-attested Identification proof (came from abroad)
- Request letter
- Identification proof of POA holder
The DRO personnel validates the aforementioned documents and requests payment of the stamp duty (in Karnataka, we pay Rs. 500 stamp duty on the Khajane-2 website and give the DRO officer the payment challan)
Day 18:
Pick up the POA at the DRO at around 10 am (after the DRO seal and sign). Visit the bank to collect property documents that same day. Bring the following documents to the bank
- Original POA
- Self-attested identification proofs (both executant and POA holder)
After validating the aforementioned documents, bank staff gives the original property documents
Additionally, the bank staff will hand over the Discharge Deed/ Reconveyance Deed to remove home loan lien registered in sub-registrar office.
We completed a Power of Attorney for one of my clients in Netherlands by following the above timeline and process. Please see the POA image below:
To remove the home loan lien, we also registered the Reconveyance Deed in the sub-registrar’s office. Please see the Reconveyance image below
We assist POA and Discharge Deed registration for home loan closing. Please write to us pgnproperties@gmail.com or WhatsApp to +91-97424-79020
Thank you for reading…
