Investing in real-estate is very common among NRIs who want to rent out their property as a form of investment or till they return so their property is maintained. However, living in a different country, a different time zone and being on a busy schedule makes it hard for property owners to keep track of what’s happening with their property. In many instances they ask a close relative to help them get certain tasks and paperwork done.
The relative helping must be legally sanctioned as the Power of Attorney (PoA) in order to either rent, lease or take any decisions with respect to the owners property.
Here are a few details the owner should be aware of when assigning a PoA:
Types of PoA
- General Power of Attorney (GPA): The individual has the legal authority to carry out all the legal activities, make decisions and make monetary transactions on behalf of the owner
- Special Power of Attorney: Is similar to GPA although here the individual can only make a few decisions to make on behalf of the owner. While drafting the POA, the property owner can state the activities the PoA can perform on their behalf.
- Durable Power of Attorney: This type of Power of Attorney is valid for a lifetime unless it is terminated. A certain clause in the PoA states that the PoA has powers even if the property owner is incapacitated.
How and who can possess a Power of Attorney:
- Any individual who is eligible to enter into a contract with another person can draft a Power of Attorney.
- The agreement should clearly mention the powers the property owner wishes to assign to the individual being sanctioned as PoA.
- The owner needs to file an affidavit with all the necessary documents to be verified by the court. If everything gets verified, the court will sanction the Power of Attorney.
- The same document then needs to be notarized by a notary advocate whose task is to declare that the property owner was competent while signing the document.
- The last step in this process is to authenticate the Power of Attorney document by the registrar as per Registrations Act,1908.
How to Revoke Power of Attorney:
- The property owner can legally revoke a Power of Attorney anytime they please
- The agreement/documents can be revoked after the death of the property owner
- There is a mutual agreement between the owner and PoA
- If there was a term defined, on the completion of that term.
Leaving your property in the hands of a close relative is always great when it comes to dealing with immediate affairs with your property. However, while the relative has the PoA and decision making powers, a property management agency such as ours can make your life more hassle free.
Our team of expert property managers will ensure your property’s upkeep, give you monthly updates and help out with any legal documentation. This will allow you to be in the loop with what’s happening with your property and you can rest assured while your relative handles other legal tasks for you.