Facts NRI Must Know About Power of Attorney Before Investing in Indian Real Estate

The Indian real estate market is known to provide great returns on investment. As a result, citizens around the world are always looking forward to investing in Indian territory which has made legal services like power of attorney equally important. Various NRIs are always on the hunt to invest in India and make good use of their property by renting it out or selling it. 

power of attorney
Power of Attorney

Recent studies show that there has been an impressive growth of investments by NRIs in India for both residential as well as commercial properties due to the falling value of Indian Rupee in comparison to American Dollar. This makes our country a hotspot of tourists, businesses, and other real estate related matters. Due to this, there have been many amendments as well as new initiatives are being taken legally to allow more ease for NRIs to invest. As there are various legal matters involved in this, the power of attorney for NRI plays a very crucial role. 

There are multiple NRI legal services for properties & other matters available these days. In India, there are three types of power of attorney:

  • Special power of attorney, where the powers are limited to a specific purpose.
  • The general power of attorney, which allows multiple powers to the attorney to exercise.
  • A durable power of attorney, which provides ceaseless powers to the attorney.
Special Power of Attorney
Special Power of Attorney Sample
General Power of Attorney Sample
General Power of Attorney Sample

Important facts related to the Power of Attorney that NRI must know


The POA registration process can be tedious. So, an NRI property management company in India can be very useful to guide the NRI for the same. In case of the sale of immovable assets, it is mandatory for the NRI to register a POA, as per the Supreme Court of India. The deed has to be registered within the jurisdiction in which the attorney resides.

Some important parts of the deed are the details of the NRI, their signature, the details of the attorney, the purpose of the deed, and the validity period for the same.


There might be situations when a dispute arises between the principal and the attorney that has been appointed. In this case, revocation is an immediate step that needs to be undertaken to avoid any type of damage to the property in hand. The process of the revocation of power of attorney needs to take place in the sub registrar’s office in which it was signed.

Usually, the revocation occurs in case of the demise/ mental illness of the principal, i.e., the NRI. The presence of two witnesses is one of the most important things to keep in mind during the revocation process. This is mandatory, failing which there can be unwanted consequences. It must be noted that as a power of attorney is valid throughout the life of the principal, and to discontinue the powers, a proper revocation process is necessary.

revocation of power of attorney sample form
Revocation of power of attorney sample form


It is important to follow the various guidelines that are mentioned in the power of attorney act for conflict-free management of the principal’s property. Therefore, all required documents during the registration of a power of attorney need to be submitted. In case the principal is unable to come to India to sign the deed, then the registration can also be done in the country where the principal resides with the signature of the head of the Indian embassy.

As a POA has all the powers on the property on behalf of the principal, the NRI must choose the attorney after a lot of thinking. There are various online portals providing real estate services in India that can provide the required guidelines to be followed while selecting the attorney. Moreover, various property managers also provide the required knowledge for handling legal lawsuits related to the property.

Legal Services for NRIs in Property related matters
Legal Services for NRIs in Property related matters

Fraudulent activities

In case there are any fraudulent activities undertaken by a power of attorney, then it might cause serious trouble to the principal. Due to this, it is advisable to take the help of a real estate company offering legal services to avoid any type of discrepancies.

Beware of Fraud Activities undertaken by a power of attorney
Beware of Fraud Activities

In situations when there are legal disputes arising during the presence of an attorney, the principal needs to prove that they are unaware of the misuse of power conducted by the power of attorney. In some cases, it has been found that the attorney has exercised powers outside the ones specified under the law, and excessive cash transactions have taken place.

Thus, it has also become important to regulate the POA by the principal. There should be constant communication between the attorney and the principal for transparency and greater accountability. This will build loyalty between both the parties and ensure that there is a seamless sale/ lease of property.


The payment related to the sale/lease of a property is the most important process in the real estate industry. To make this hassle-free for NRIs, a POA for property makes this process much easier and credible. It is important to note that the principal can give the attorney permission to accept the payment on their behalf. This implies that the most crucial part, i.e., the financial transaction, has to be carefully supervised by the attorney; making sure that there are no discrepancies in the process.

However, it must be kept in mind that the payment needs to be transferred to the account of the principal only. It is not within the exercise of the attorney to receive the payment in their personal account. 


As the price points of the real estate industry are changing incessantly, it becomes important that the NRI keeps themselves aware of the latest trends of the market. This will ensure that the property is in good hands, and no misuse of any power is being done.

A power of attorney is very important in the management of the property, as most of the duties that need to be performed by them need immense detailing and focus. Choosing the right attorney is as important as selecting the right property. Therefore, the above-mentioned points are necessary to be known before appointing an attorney.