POA Tips for Property Management and Investment in India – Guest Post

Property Management

Power of Attorney is certainly a legal document that grants an individual the authority to appoint another person. The one who grants is known as the “principal”, whereas the appointed person is the “attorney-in-fact” or “agent”. The agent, as this word suggests, makes decisions and acts on the behalf of the principal in legal and financial matters. Simply put, this legal arrangement empowers the attorney-in-fact to make decisions and proceed with actions as if he or she were the principal themselves.

POA for Property Investment & Management

The Power of Attorney (POA) can align broad or limited rights to the authoritative person ( i.e. Attorney-in-fact). These rights will be defined on the basis of the principal’s preferences. It allows the attorney-in-fact to manage a wide range of matters effectively. These matters can be concerned with all areas of NRI property investment and management in India, such as managing rental income or finances, selling property, making medical decisions, renting, tenant management, or even representing the principal in legal proceedings. However,   the principal may limit authorities to specific tasks or a particular period.

How to Choose Reliable Person for POA?

Creating a Power of Attorney requires the principal to be of sound mind. He should be capable of understanding the actual motive of granting such authority. With clear understanding, the POA document can be drafted properly. Later on, it is signed, and witnessed in accordance with the applicable laws of the jurisdiction.

Every NRI or non-resident must examine the biography or profile of the person (in case of non-family members). This is crucial to choose a trusted individual as the attorney-in-fact. Always take into account that such person will have significant control over the principal’s affairs and authentic. Simply put, he or she must be trustworthy. The attorney-in-fact has a fiduciary duty (which is all about trust, especially with regard to the relationship between a trustee and a beneficiary) to act in the best interests of the principal. He or he must follow the specific instructions outlined in the Power of Attorney.

A Power of Attorney is a valuable legal tool, which allows non-residents and other individuals to overcome unforeseen circumstances, such as inability to be there and execute essential duties. While drafting and delivering it to someone, it is ensured that the affairs are managed by someone the principal trusts. Above that, it introduces flexibility and peace of mind. This is how non-residents heave a sigh of relief while smoothly handling important matters when the principal is unable to do so by himself/ herself.

How Can It Be Useful for NRIs to Invest in Property in India?

For Non-Resident Indians (NRIs) involved in property management, POA comes along with several benefits:

  • Remote Management: Non-residents can appoint a trusted person as their attorney to continue with effective management of their property affairs when they are not there. This arrangement eliminates the need for constant travel and efficient management by self.
  • Convenience and Flexibility: POA introduces convenience by allowing non-residents to delegate property-related tasks to their attorney, such as buying, selling, leasing, or renting properties, handling legal matters, and signing documents on their behalf. This happening keeps things in continuity.
  • Time and Cost Savings: The grantor or principal can save significant time and expenses associated with overseas travel. Their attorney will be there to handle property transactions, paperwork, and negotiations locally.
  • Ensuring Continuity: POA ensures seamless continuity in property management. Its maximum benefit is seen to NRIs during extended stays abroad or in case of emergencies. This option is a true saviour when you need to make instant decisions. The attorney can make decisions promptly without delays on your behalf.
  • Legal Protection: People can rely on their attorneys to act in their best interest. They protect their rights and ensure compliance with relevant laws and regulations.
  • Property Maintenance: Attorneys can oversee property maintenance, payment of utility bills, and handling tenant-related matters. Besides, they ensure that the property remains in good condition and generating income.
  • Peace of Mind: Last but not the least, emigrant Indians can have peace of mind knowing that their property is being managed efficiently and professionally by a trusted person.

Crucially, every resident who lives abroad should consult legal professionals and carefully draft the Power of Attorney document. This document should specifically state the scope, limitations, and duration of the attorney’s powers, ensuring their property is managed in their best interest.

How to Draft It to Maximize Legal Benefits?

When drafting a Power of Attorney (POA), the legal benefits can be maximized, especially for Non-Resident Indians (NRIs). Therefore, it is important to consider the following crucial points:

  • Clarity and Specificity: Clearly mention the purpose and scope of the POA. It must include the specific powers granted to the trusted person. This guides the attorney about his/her responsibilities and limits his/her authority to property management matters only.
  • Duration and Termination: Do specify the duration of the POA, whether it is for a fixed period or until a specific event occurs. Additionally, include the terms, conditions, and circumstances for its revocation or termination. This will help NRIs to end the authority granted to the attorney whenever seems necessary.
  • Authorized Actions: State specific actions the attorney can take or decisions he/ she can make on behalf of the NRI. These can be related to buying or selling property, leasing or renting, collecting rent, managing finances, representing the NRI in legal matters, and signing documents. Make all restrictions or limitations on their actions clearly.
  • Successor Attorney: It will be good if you consider including provisions for appointing a successor attorney in case the original attorney is unable, unavailable, or unwilling to act. This will prevent potential gaps in property management and establish continuity.
  • Witness and Notarization: This points relate with witnessing and notarizing documents clearly. It holds a legal value and validity. Compliance with local laws and regulations is essential.
  • Governing Law and Jurisdiction: Specify the governing law and jurisdiction under which the POA will be interpreted and enforced. Take help of a solicitor or legal consultant in this regard. This can be the law of the NRI’s home country or the country where the property is located.
  • Professional Legal Advice: Hire an expert NRI consultancy who is a qualified legal professional experienced in international property matters to seek guidance. He/she can help in tailoring the POA to the specific requirements and legal framework relevant to the NRI’s situation.


Power of Attorney (POA) is a legal document or paper, which grants authority to another person to act on behalf of the grantor in various matters. The specifics of drafting a POA can vary based on the laws and regulations of the relevant jurisdictions involved, so it’s crucial to consult with a legal professional to ensure compliance and maximize the legal benefits for NRIs.