Power of Attorney for NRIs: Managing and Selling Kerala Property from Abroad

Thousands of Keralites working in the Gulf, Europe and America own land or a house back home. Selling it, buying a plot, handling a partition, paying tax or fighting a boundary dispute usually cannot wait for the next visit. The usual solution is a power of attorney given to a trusted relative.

Done correctly, it works well. Done carelessly, it is one of the most common routes to property fraud. This guide explains how to execute a valid power of attorney from abroad for property in Kerala, and how to keep control of your property while you are away.

A general power of attorney gives wide powers over your property or affairs. A special power of attorney is limited to a specific act, such as selling one identified plot, executing one sale deed, or appearing in one case.

For NRIs, a special power of attorney is almost always the safer choice. It should identify the property by survey number, village and taluk, state exactly what the agent can do, and, where possible, fix the minimum price or name the buyer.

A power of attorney signed outside India must be authenticated before it can be used here. In practice this means signing it before an Indian consular officer at the Indian Embassy or Consulate, or before a notary in that country followed by the authentication that Indian authorities require. The Registration Act, 1908 (Section 33) recognises powers of attorney authenticated in this way.

Gulf countries often have an additional step through their foreign affairs ministry before embassy attestation. The document should carry passport-size photographs and copies of the passport of the person giving the power.

A power of attorney executed abroad is usually signed on plain paper. Once it reaches India, it must be stamped under the Kerala Stamp Act within three months of its first receipt in India. In practice this is done through the District Registrar’s office, where the document is adjudicated and the stamp duty is paid. Missing the three-month window can lead to a penalty and delay.

For a power of attorney that authorises the sale or transfer of immovable property, registration at the Sub-Registrar office where the property is situated is strongly advisable, and many Sub-Registrars insist on it before registering a sale deed signed under the power of attorney. A registered document also leaves a public record, which helps against later disputes.

A power of attorney does not transfer ownership to the agent. In Suraj Lamp and Industries v. State of Haryana (2011) the Supreme Court held that so-called “GPA sales”, where property is passed on through a power of attorney, an agreement and a will instead of a registered sale deed, do not convey title. Ownership passes only through a registered deed of conveyance.

A power of attorney also ends automatically on the death of the person who gave it (Section 201 of the Indian Contract Act, 1872). An agent cannot validly sell property after the owner has died; that requires the legal heirs.

• Give the power of attorney only to someone you trust completely, and prefer a special PoA for one transaction.
• Specify the property, the act permitted and, where possible, the price and the bank account into which the sale price must be paid.
• Ask for copies of every document signed and every receipt, and check the encumbrance certificate after the transaction.
• If you lose trust in the agent, revoke the power of attorney by a registered deed of revocation and give written notice to the agent and to the Sub-Registrar.

An NRI buying land or a flat through a power of attorney should insist on a full legal scrutiny of title before any advance is paid: title deeds for at least 30 years, the encumbrance certificate, tax receipts, possession certificate, thandaper, and whether the land is classified as paddy land or wetland. Under the foreign exchange rules, NRIs and OCI cardholders cannot buy agricultural land, plantation property or farm houses in India, though they can inherit them.

Adv. K Rajesh Kannan, a High Court of Kerala advocate with over 24 years of practice, advises NRI clients on powers of attorney, sale and purchase of property in Kerala, title verification, partition and property disputes, including drafting special powers of attorney for execution abroad, checking documents before registration and acting where a power of attorney has been misused.

Questions NRIs often ask

Can I sell my Kerala property without coming to India?
Yes, through a properly authenticated, stamped and registered power of attorney in favour of a trusted person, who then signs the sale deed before the Sub-Registrar.

How long is an NRI power of attorney valid?
Until it is revoked, the purpose is completed, or the person who gave it dies. It is still wise to state the period or purpose clearly.

Can the power of attorney holder sell the property to himself?
Only if the document expressly allows it and the transaction is fair. Otherwise it can be challenged.

What is the time limit for stamping a PoA from abroad?
Three months from the date it is first received in India.

Can a power of attorney be used after the owner’s death?
No. It ends on the death of the person who gave it.

This guide gives general information about the law in Kerala. It is not legal advice on any particular case.