How to register a special power of attorney issued by NRI?
Answered on January 14,2024
Special Power of Attorney (SPOA)
SPOA issued by NRI doesn’t require registration. The SPOA must be validated and adjudicate stamp duty in the district registrar’s office.
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Before we answer your question in detail. let me explain, why we chose SPOA instead of POA or GPA.
One of my client, husband and wife co-owns a flat in Bangalore, India. They are NRI status holder and living in Australia. Due to work commitments, they are not able to come to India for sale deed registration so NRI initially decided to grand power of attorney to father/father-in-law (father to wife and father-in-law to husband)
If the seller gives POA to non-blood relative, the stamp duty for POA adjudication is 5% of selling price. Our selling price is Rs. 54 lakh.
In Karnataka, father-in-law is considered non-blood relative. In our scenario, wife is blood-related to father and husband is non-blood-related to father-in-law. we need to pay 2.5% of stamp duty for POA adjudication. That is Rs.54,00,000*2.5% = 1,35,000/-
To avoid the hefty stamp duty of Rs.1,35,000, we chose SPOA. The stamp duty for SPOA is Rs.200 irrespective of blood and non-blood relative
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Now comes to your question, NRI executed the below SPOA in Australia for sale of property in Bangalore, India
NRI couriered the following documents to us, to India
- SPOA (Attested by notary public)
- Absolute sale deed signed by sellers (Attestation from notary or embassy is not required)
- Self-attested ID proofs
In India, we submitted the above documents in district registrar’s office for validation and adjudication of stamp duty. The Stamp duty is Rs.200 per executant, The total stamp duty we paid is Rs. 400 for two executants (husband & wife), we highlighted the same in image below
By using the above SPOA, we registered the sale deed. We highlighted the SPOA details in below sale deed
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