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Tag: General Power of Attorney

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What is the difference between General Power of Attorney and Special Power of Attorney in property transaction?

Power of Attorney is a document allowing a person (principal) to grant authority to another person (an agent) to act on behalf

There are several differences between General Power of Attorney (GPA) and Special Power of Attorney (SPOA). Many often find it difficult to choose between GPA and SPOA, exploring the difference can help you to choose the right document for your property transaction.

We are going to cover the following key differences between GPA and SPOA:

  • Authority
  • Agent
  • Stamp Duty
  • Duration
  • Documents and Process

General Power of Attorney (GPA):

Authority: The principal grants broad range of authority to an agent.

For Example: Granting authority to Sign the Deed, Present the Deed in sub-registrar office, collect the consideration from buyer and deliver the possession to buyer

Agent: An agent should be reliable and capable of handling the property transaction on your behalf. We can grant GPA to anyone including family members and non-family members. Additionally, we can save stamp duty if we grant GPA to family members instead of non-family members.

The Family members such as Father, Mother, brother, sister, husband, wife, son and daughter

Stamp Duty: have different consequences on GPA based on buying, selling, family member, non-family member, and origin.

We are listing the pattern based on buying, selling, family members, non-family members and origin for your better understanding of stamp duty and this stamp duty is subject to Karnataka

  • Buy a property + GPA execution in India + family member = stamp duty is Rs. 1000/executant
  • Buy a property + GPA execution in India + non-family member = stamp duty is Rs. 1000/executant
  • Buy a property + GPA execution in abroad + family member = stamp duty is Rs. 500 /executant
  • Buy a property + GPA execution in abroad + non-family member = stamp duty is Rs. 500 /executant
  • Sell a property + GPA execution in India + family member = stamp duty is Rs. 1000/executant
  • Sell a property + GPA execution in India + non-family member = stamp duty is 5% of selling price or guidance value whichever is higher
  • Sell a property + GPA execution in abroad + family member = stamp duty is Rs. 500 /executant
  • Sell a property + GPA execution in abroad + non-family member = stamp duty is 5% of selling price or guidance value whichever is higher

The GPA execution for banking purposes like MODT Registration, Reconveyance Deed/ Discharge Deed Registration, the Stamp Duty is less irrespective Family member and non-family member. Refer to the pattern below:

  • GPA execution in India + family member = stamp duty is Rs. 1000/executant
  • GPA execution in India without consideration + non-family member = stamp duty is Rs. 1000/executant
  • GPA execution in abroad + family member = stamp duty is Rs. 500 /executant
  • GPA execution in abroad without consideration + non-family member = stamp duty is Rs. 500 /executant

Duration: Authority granted under GPA remains effective until the revocation, termination, specified duration in GPA or death of the principal

Documents and process: to execute GPA

  • GPA Draft: outlines the scope of authority to agent and terms & conditions imposed by principal. The Draft should be filled and signed before final submission
  • Identity Proofs: Valid identity proofs of the principal and agent such as Aadhaar/OCI and PAN
  • Witnesses: Signatures of at least two witnesses and their valid identity proofs such as Aadhaar
  • Registration: If the GPA is executed in India, it should be registered in a sub-registrar office near you
  • Notary or Attestation: If the GPA is executed in abroad, it should be notarized or attested by authorized officials in the country in which you reside.
  • Adjudication: GPA agent in India must get GPA adjudication in District Registrar’s office

Special Power of Attorney (SPOA):

Authority: The principal grants specific authority to an agent

For Example: Granting authority only to Present a Deed in sub-registrar office for registration. Unlike GPA, an agent does not have the authority to sign the Deed, collect the consideration from buyer and deliver the possession to buyer

Agent: An agent should be reliable and capable of handling the authorized specific task on your behalf. We can grant the SPOA to anyone including family or non-family members, there is no difference in stamp duty irrespective of family or non-family members

Stamp Duty: remains same for buying, selling, family member or non-family member, the only difference is in origin.

  • SPOA execution in India, the stamp duty is Rs. 1000 per executant
  • SPOA execution in abroad, the stamp duty is Rs. 500 per executant

Unlike the GPA, the 5% stamp duty does not apply in SPOA irrespective of selling a property and granting to non-family members. Listing the pattern below for your easy understanding of stamp duty

  • Buy a property + SPOA execution in India + family member = stamp duty is Rs. 1000/executant
  • Buy a property + SPOA execution in India + non-family member = stamp duty is Rs. 1000/executant
  • Buy a property + SPOA execution in abroad + family member = stamp duty is Rs. 500 /executant
  • Buy a property + SPOA execution in abroad + non-family member = stamp duty is Rs. 500 /executant
  • Sell a property + SPOA execution in India + family member = stamp duty is Rs. 1000/executant
  • Sell a property + SPOA execution in India + non-family member = stamp duty is Rs. 1000/executant
  • Sell a property + SPOA execution in abroad + family member = stamp duty is Rs. 500 /executant
  • Sell a property + SPOA execution in abroad + non-family member = stamp duty is Rs. 500 /executant

The SPOA execution for banking purposes, like MODT Registration and Reconveyance Deed/Discharge Deed Registration, the Stamp Duty is less irrespective of family member or non-family member. Refer to the pattern below:

  • SPOA execution in India + family member = stamp duty is Rs. 1000/executant
  • SPOA execution in India without consideration + non-family member = stamp duty is Rs. 1000/executant
  • SPOA execution in abroad + family member = stamp duty is Rs. 500 /executant
  • SPOA execution in abroad without consideration + non-family member = stamp duty is Rs. 500 /executant

Duration: Authority granted under SPOA remains effective until the completion of specified task in SPOA

Documents and process: to execute SPOA

  • SPOA Draft: outlines the scope of authority to agent and terms & conditions imposed by principal. The Draft should be filled and signed before final submission
  • Identity Proofs: Valid identity proofs of the principal and agent such as Aadhaar/OCI and PAN
  • Witnesses: Signatures of at least two witnesses and their valid identity proofs such as Aadhaar
  • Registration: If the SPOA is executed in India, it should be registered in a sub-registrar office near you
  • Notary or Attestation: If the SPOA is executed in abroad, it should be notarized or attested by authorized officials in the country in which you reside.
  • Adjudication: SPOA agent in India must get SPOA adjudication in District Registrar’s office
  • Deed: If the principal authorizes the SPOA only to present the Deed in the sub-registrar’s office, the principal must execute and sign the deed. Unlike GPA, the agent cannot sign the Deed.

We assist GPA and SPOA, please write to us pgnproperties@gmail.com or Whatsapp to +91-97424-79020

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What is the procedure for giving a power of attorney for a property in India?

The power of attorney (POA) execution is quite different for NRIs and Indian residents.

Let me start with NRIs resident:

NRIs don’t have to be present physically for registration of property for buying, selling, or managing in India.

NRIs can issue true and lawful power of attorney in favor of his/her family member, relative, friend, colleague, or agent. we should make sure that attorney holder is truthful and reliable to you.

Below are the steps to execute power of attorney

Step 1: Prepare the draft in Word format

Step 2: Print draft on A4 size paper

Step 3: NRI should sign POA in front of Indian Consulate Officer or notary public in your country. Should sign at bottom of all pages and witness has to sign at witness section.

Step 4: Courier the POA to your true and lawful attorney to India.

Step 5: Attorney holder in India should adjudicate the POA in District Registrar’s office, in the judication of where the property is located.

Please note, as an NRI, your presence is not mandatory to register the property but attestation from Indian consulate at your country is very much mandatory.

NRI GPA looks like below image:

 

For Indian residents: (executant or attorney living at different places in India)

Step 1: The Executant should prepare the draft in Word format

Step 2: Submit an application for registration in sub-registrar office + application must be approved within 2-3 working days + pay the government fee

  • Stamp Duty : Rs. 1000 per executant
  • Registration Fee is Rs. 200
  • Scanning Fee Rs. 35 per page

Step 3: Print the draft on document paper

Step 4: Executant carry the following things to sub-registrar office (SRO)

  • Printed POA
  • Application summary report and Payment receipt
  • ID proofs of executant, Preferably Aadhaar
  • Active mobile phone to receive OTP

Step 5: Executant signs the POA. In the registrar’s office, the officer takes your fingerprint and webcam photo to complete registration.

Step 6: Send the registered POA to your Attorney holder through courier or handover personally.

This completes the process of registering the POA if the executant and attorney live in different location within India. (say for example you live Karnataka and attorney live in Delhi).

For Indian residents: (Both executant and attorney living at same place in India)

Step 1: Prepare the draft in word format

Step 2: Submit an application for registration in sub-registrar office + application must be approved within 2-3 working days + pay the government fee

  • Stamp Duty: Rs. 1000 per executant
  • Registration Fee is Rs. 200
  • Scanning Fee Rs. 35 per page

Step 3: Print the draft on document paper

Step 4: Executant and Attorney carry the following things to sub-registrar office (SRO)

  • Printed POA
  • Application summary report and Payment receipt
  • ID proofs of executant & Attorney, Preferably Aadhaar
  • Active mobile phone to receive OTP

Step 5: Executant and Attorney signs the POA. In the registrar’s office, the officer takes fingerprint and webcam photo to complete registration.

This completed the registration procedure.

Below is the image of the registered POA.

We provide end-to-end assistance to execute POA. To opt for our service, please write to us pgnproperties@gmail.com or WhatsApp to + 9 1 – 97424 79020.

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How can I give my brother in India a power of attorney while overseas?

Below is the procedure to give POA to your brother in India from overseas

1. Draft :

Prepare the draft in word format.

2. Print:

Print the draft on the normal A4 size paper. Attach your passport size photo on last page of POA.

3. Notary:

Meet the notary in your country and attest the POA from notary

4. Transit:

Send the POA to your brother in India

5. Adjudication

Your brother should carry the following documents to District registrar’s office to adjudicate the POA.

Adjudication should be done in the jurisdiction of where the property is located.

  • Original POA (which came from foreign)
  • ID proof of you and your brother (Id proof should establish the relationship, we mean that father name should match in both the ID proof)
  • Stamp duty challan
  • Requestion letter for adjudication
  • Sale deed copy (for selling the property)

(Adjudication of POA is mandatory for property matters of buying and selling. Adjudication of POA is not mandatory for banking purposes).

6. District Registrar office (DRO)

DRO verified POA, ID proofs, stamp duty payment.

DRO adjudicates the POA.

This completes the procedure to give POA to your brother from overseas.

Below is a real example.

The brother lives in USA, gives GPA to his brother for selling a property in Bangalore, India.

We followed the above procedure to execute below GPA, we sold the property using this GPA.

We provide end-to-end assistance to execute POA. To opt for our service, please write to us pgnproperties@gmail.com or WhatsApp to +91-97424 79020.

Thank you for reading…

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NRI from Australia wants to sell property in India, is general power of attorney is possible to only blood relatives?

As an NRI from Australia sells property in India, General power of attorney (GPA) is possible for blood relatives and non-blood relatives but we have few consequences when giving GPA to non-blood relative

NRI Buying:

As an NRI, when you buy a property in India, you can give GPA to anyone including blood and non-blood relatives.

Blood relatives are: Father, Mother, brother, sister, husband, wife, children,

Non-blood relatives are: cousins, friends, colleagues, advocates, or broker

The stamp duty for GPA adjudication in India is just Rs. 500/-per executant (for buying property)

NRI Selling:

As an NRI, when you sell a property in India, you can give a GPA to anyone including blood and non-blood relatives. The Stamp Duty for blood and non-blood relatives is different:

  • The stamp duty for blood relatives is Rs. 500
  • The stamp duty for non-blood relatives is 5% of selling price or guidance value, whichever is higher

For example: Let’s consider that you want to sell a 3BHK flat in Bangalore India. The selling price is Rs. 80 lakhs and the guidance value is Rs. 55 lakh

If you give GPA to blood relative, the stamp duty is Rs. 500 irrespective of selling price

If you give a GPA to non-blood relative, the stamp duty is Rs. 80 lakh * 5% = 4,00,000/-. This Stamp Duty is paid at the time of GPA adjudication in India.

We suggest you issue GPA to blood relatives to avoid hefty stamp duty and also blood relative considered trustworthy. OR you can issue Speical Power of Attorney (SPOA) to anyone, the stamp duty for SPOA is Rs.500 per executant for selling property

We provide end-to-end assistance to obtain a GPA. To opt for our service, please write to us pgnproperties@gmail.com or WhatsApp to + 9 1 – 97424 79020.

Thank you for reading…

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What is the validity of a general power of attorney executed outside India?

General Power of Attorney (GPA) remains valid till the life of principal or attorney, within their lifetime, one can revoke the GPA at any time.

GPA can be executed with duration validity, For example: for a period of 1 year, 5 year, or till the specific transaction or legal task of which GPA was executed. GPA is revoked when the specified duration, transaction or legal task is accomplished.

Below is the procedure to execute a valid GPA

  • Draft the GPA in Word format (the format is different for buying, selling, and bank matters)
  • Print the draft on A4 size paper,
  • Get the GPA attested by local notary or Indian consulate in your country
  • Send the GPA to your Attorney holder in India through a reputed shipping partner (Ex: Fedex, DHL, or your source traveling to India)
  • Your attorney holder in India should adjudicate the GPA in the District registrar’s office, in the judication of property located.

This completes the procedure to execute GPA in a foreign country for property or bank matters in India.

Below is the image of GPA that we executed in Canada, notarized in Canada,  sent to India through courier, adjudicated in Bangalore, used this GPA to sell property in Bangalore, India, and cleared existing bank loan.

We provide end-to-end assistance to execute GPA. Please write to us pgnproperties@gmail.com or WhatsApp to + 9 1 – 97424 79020.

Thank you for reading…