Navigating Power of Attorney in Real Estate: Do’s and Don’ts

Buying or selling property in India involves a mountain of paperwork. But what if you’re not physically present to sign those documents, or you want someone you trust to handle transactions on your behalf? That’s where a Power of Attorney (POA) comes in, a legal authorization that lets another person act on your behalf in property matters.

In real estate, POA isn’t just paperwork,  it’s trust written in legal language. It’s often used by NRIs buying property in India, elderly owners who can’t handle daily formalities, or families managing inherited assets. However, a POA can also go wrong if not executed or verified properly. Fraudulent agents, misuse of power, or outdated authorizations can lead to massive legal trouble.

This guide breaks down everything you need to know — from choosing the right type of Power of Attorney and notarizing it, to recognizing red flags, revoking it safely, and understanding how NRIs can use it securely.

Key Takeaways

• Power of Attorney (POA) allows someone (agent) to legally act on behalf of another person (principal) for property transactions.
• NRIs commonly use POA to buy, sell, or manage real estate in India while living abroad.
• Always notarize and register your POA to make it legally valid and enforceable in court.
• Avoid giving irrevocable POA unless absolutely necessary — it limits your control over property rights.
• You can revoke or update a POA anytime, provided it hasn’t been used for a completed transaction.

Understanding Power of Attorney in Property Transactions

A Power of Attorney is a legal document that grants specific powers to another person,  called the agent or attorney-in-fact, to perform acts on behalf of the principal (you).

In real estate, these acts can include:

• Signing sale deeds and agreements
• Paying property taxes
• Collecting rent or managing tenants
• Applying for housing loans
• Registering property at the sub-registrar’s office

There are two major types of POA used in India:

1. General Power of Attorney (GPA)

Gives broad powers — to sell, lease, manage, or mortgage property. Often used for day-to-day operations or when someone wants another to fully manage assets.

2. Special Power of Attorney (SPA)

Gives limited, specific powers,  like signing one particular sale deed or collecting a payment. Used when you want to control exactly what your agent can do.

Choosing the right one depends on how much authority you want to delegate, and how much you trust the person holding that power.

Why NRIs Need Power of Attorney for Buying or Selling Property

For Non-Resident Indians, being physically present at every legal stage — from registration to sale deed signing,  is nearly impossible. A Power of Attorney makes it possible for an authorized representative in India to handle:

• Property purchases and sales
• Home loan applications
• Agreement signing and document registration
• Property tax payments or municipal updates

Here’s how it works for NRIs:

1. Draft the POA clearly mentioning the powers granted.
2. Get it notarized and attested by the Indian Consulate in your country of residence.
3. Send it to India, where it must be stamped and registered at the sub-registrar’s office.

Only after these steps does the POA become legally enforceable.

Types of Power of Attorney Used in Real Estate

Understanding the right type of POA is key to avoiding disputes or misuse:

While irrevocable POAs are legally binding, they’re risky for individual buyers or owners. Once granted, it’s almost impossible to withdraw them without court intervention.

Steps to Notarize and Register a Power of Attorney

Drafting a POA isn’t enough — it needs to be notarized, stamped, and registered to be valid.Here’s a step-by-step guide:

1. Draft the POA document with help from a legal professional, clearly defining:
   • Parties involved
   • Scope of powers
   • Property details
   • Duration of authority
2. Get the document printed on stamp paper (value depends on state laws — ₹100 to ₹500 typically).
3. Notarize it before a public notary to confirm authenticity.
4. Register the POA at the sub-registrar’s office within the property jurisdiction.
   • Both the principal and agent (or their representatives) should be present.
   • Bring valid ID proof, address proof, and passport-sized photos.
5. Keep multiple copies — one for personal records and another for submission to banks or registration offices.

If executed abroad (for NRIs), the process includes attestation by the Indian Consulate before sending it to India for registration.

Costs Involved in Power of Attorney

The cost of creating a POA varies depending on where and how it’s executed.

Always keep payment receipts,  they’re proof that your document is validly executed.

Power of Attorney for Sale of Property

Selling property via POA is common, especially for NRIs or co-owners living abroad. However, it must be legally compliant to prevent ownership disputes.

When using a POA for sale:

• Ensure the POA mentions the exact property and permission to sell.
• The buyer must verify that the POA is registered and still valid.
• Include a clause limiting power duration to avoid future misuse.
• Avoid blank or general clauses that give unrestricted powers.

Remember, Supreme Court rulings have clarified that properties sold solely through GPA (without registered sale deeds) do not transfer ownership. POA can only authorize a sale,  it cannot replace an actual sale deed.

How to Revoke or Update a Power of Attorney

You can revoke a POA at any time, as long as it hasn’t been used for an irreversible transaction.

Steps to Revoke POA

1. Draft a Revocation Deed stating your intention to cancel.
2. Register it at the same sub-registrar’s office where the POA was recorded.
3. Send notices to the agent and any third parties involved (e.g., banks or developers).
4. Publish a public notice in a local newspaper to make it official.

If you simply want to update or modify a POA (for example, change an agent or add new powers), you’ll need to draft a fresh POA and register it again.

Red Flags to Watch When Choosing a POA Agent

A Power of Attorney is only as trustworthy as the person you give it to. Here are warning signs that should make you think twice:

• The agent hesitates to share updates or refuses transparency.
• They pressure you into granting broad or irrevocable powers.
• Their relationship with the property (or you) is not legally defined.
• They avoid registering the POA, insisting “notarization is enough.”
• They have a financial or ownership interest in the same property.

When in doubt, appoint a professional or family member with no conflict of interest and full accountability.

Power of Attorney and Property Ownership: Clearing the Myths

Let’s settle this once and for all — a Power of Attorney does not make the holder the owner of the property. It only gives them permission to act on your behalf within defined boundaries. Ownership always remains with the principal until an actual sale deed or transfer is executed.

In short:

• POA = Right to act
• Sale Deed = Right to own

So if someone tries to convince you that having POA equals ownership, walk away,  or call a lawyer.

How BrickFi Helps You Navigate Property and POA Legally

BrickFi simplifies what’s otherwise a confusing web of property documents and legal jargon. Whether you’re an NRI buying real estate or a local seller delegating authority, BrickFi helps you understand exactly how a Power of Attorney affects your transaction.

The platform breaks down POA types, costs, and verification steps, so you can avoid scams and draft documents confidently. BrickFi also connects buyers and sellers with verified legal partners for notarization, registration, and revocation support,, ensuring your property dealings are compliant and risk-free.

From checking POA documents to verifying a power of attorney for sale of property, BrickFi gives you the tools to act smart and stay legally protected.

Conclusion: Power with Caution

A Power of Attorney is a powerful instrument — it can simplify life when used right and destroy trust when used wrong. Whether you’re authorizing a relative to sell property or allowing a manager to handle registration on your behalf, clarity and documentation are everything.

Always define the scope, notarize the document, and register it. Keep it limited in duration, revoke it when done, and never hand over more control than required.

In real estate, trust is valuable,  but proof is priceless.

FAQs: Power of Attorney for Property

1. What is the Power of Attorney in real estate?

 It’s a legal document that lets one person act on another’s behalf for property transactions,  including sale, purchase, management, or registration.

2. Can an NRI buy or sell property in India through Power of Attorney? 

Yes. NRIs can issue a notarized and attested POA to a trusted person in India who can sign documents, handle registration, or sell property for them.

3. How do I verify if a Power of Attorney is genuine?

Check whether it’s registered at the sub-registrar’s office, has the official stamp and signatures, and includes the exact powers granted. Avoid unregistered or photocopied POAs.

4. Can I revoke a Power of Attorney after issuing it?

Absolutely. You can draft and register a Revocation Deed, notify the agent and related parties, and publish a public notice confirming its cancellation.

5. Does Power of Attorney mean property ownership?

No. A POA only allows someone to act on your behalf, it doesn’t transfer ownership. The property legally remains with the original owner until a sale deed is executed and registered.