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Special Power Of Attorney For Lease Of Property

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It so happens that most Non-resident Indians possess immovable property in India- or properties in many cases. Quite a number of their properties lie vacant for most parts of the year. It is not just non-residents who face this problem, but also people who migrated to tier I cities in search of greener pastures face such issues. While it is considered to be a good option to find a lessee or tenant so that the property is maintained in good shape, most such owners are too busy in their work lives to find time and efforts in order to find a tenant and to negotiate the terms and get a lease deed/rental agreement drafted and attend to registration, if required.

It is not just the working class or professionals who find it unable to fulfill the requirements for a lease of a property. Sometimes, the property can be in the name of senior citizens, physically ill persons or homemakers who find it difficult to attend to the requirements of the lease.


How To Lease A Property Without Being Present For The Formalities?

A Special Power of attorney is the way to go for prospective lessors/landlords who can find it impossible to travel to the town where the property is situated, and to complete the legal formalities including execution of the lease deed or in common parlance- rental agreement. This becomes all the more important for compulsorily registrable lease deeds.  It is the ideal choice for deeds that are of terms of one year and above which require the presence of both parties at the Sub-Registrar office for registration.  It also has significance for agreements of lesser terms which is registrable for using as valid address proofs acceptable by various government authorities. Moreover, it is in the interests of both the parties to get any lease deed/rental agreement registered for better legal recognition. In such situations, a Special Power of Attorney can come to your rescue.

What Exactly Is A Power of Attorney?

A ‘Power of Attorney’ is a legal document that enables the flow of  authorisation from one person to another. This essentially means that the ‘Attorney’ or the person who is granted authorisation can represent the ‘Principal’ or the person who grants the authorisation in various transactions legally. Such transactions shall be deemed to have been completed under the presence of the Principal.

Why Not General Power Of Attorney?

A Special Power of Attorney has an edge over a General Power of Attorney if your intention is limited to just leasing of the property. The rights given to the attorney will be specified with clarity including the roles at the beginning of the lease to subsequent ones like collecting of rent amount. However, if you are considering options like the sale of your property or leasing, it would be recommended to opt for a General Power of Attorney.

What Is Special Power Of Attorney For Lease Of Property?

A special power of attorney for the lease of property is a document that authorises a person to lease a property on behalf of the owner of such property. All the rights and duties of the attorney are mentioned in detail within in the document. Only such rights shall be available as mentioned in the document. Therefore the document needs to be drafted in detail, considering the individual aspects of the transaction. The rights usually is related to the lease deed and the registration of the same. The details about receipt of rental value, initial deposit and the way in which such liquid assets shall be transferred to the Principal shall also be mentioned along with formalities to be completed at the Sub-Registrar office.

What To Include In A Special Power Of Attorney For Lease Of Property?

A power of attorney of any kind is a document which, begins with the brief acknowledgment of ownership and description of the property. The declaration of the intention to let it on lease is mentioned.  It is very important to enumerate, the reasons for executing the power of attorney. Such details may be about the incapacity of the Principal to be physically present at the time of fulfilling the duties explained in the document. Those reasons may include the residential location of the Principal being in a foreign country, or in another town; it may also be reasons like physical infirmity or old age. It is also a valid reason if the Principal is a housewife.

The description of identities of both the parties, i.e principal and the attorney need to be mentioned along with their present addresses. The appointment clause  is added which goes on to give validity to the appointment of the second party as the true and lawful attorney of the first party, the principal.

The detailed description of the tasks to be carried out by the attorney is mentioned thereafter. Such tasks can include:

  1. Letting on lease the whole or any part/parts of the said property on terms and conditions as the attorney in his discretion thinks fit, accept the surrender of possession from such tenant/lessee or other occupier and to take possession and receive rents, profits and income from the property in whole or in part.
  2. Executing and delivering on behalf of the Principal,the tenancy, agreement, lease deed, as may be necessary for letting or leasing the whole or any part parts of the said property.
  3. Repairing, maintenance from time to time, painting and other acts and things to keep the property in good condition.
  4. Paying, settling, adjusting and deducting and allowing all accounts, claims and demands or rent, assessment and repairs and other outgoing in respect of the property.
  5. Collecting and receiving from the lessee/ tenant or occupiers of the property all fees, rent and other sums of money that may be due and taking all lawful proceedings for the recovery of such sums.
  6. Presenting the lease deed for registration before the concerned Sub-Registrar office and fulfilling all specified formalities including payment of stamp duty, registration charges and other fees payable to the government.

How To Make It Legally Valid?

A special Power of Attorney for lease of Property can be printed and executed on a plain paper.  The prescribed stamp duty shall be collected at the sub registrar’s office and embossed on the document while registering of the Special Power of Attorney. If it is printed on stamp paper, the remaining amount of stamp duty shall be assessed and collected while registering along with the registration fees, cess and other applicable fees.  If the Power of Attorney is being created in a foreign country, it needs to be printed on a plain paper and taken to the appropriate Indian Embassy or Consulate in that particular country to get it attested by the authorities before sending it to the attorney who may get the document registered in India.

The attorney can proceed with the creation of the lease deed and complete the registration of the same. The deposit amount received from the lessee can then be transferred to the Principal after fulfilling tax responsibilities, if any.

Are You Interested in Leasing A Property Through A Representative?

All that is required from your end is to identify that trusted person who may be your relative or friend as your attorney and we shall help you proceed further. Our legal team shall create your Power of Attorney document keeping in mind your particular requirements in a way that your interests are protected. The rights granted shall be limited based on your discretion. If your property is lying vacant for want of a tenant, the best solution would be’s Special Power of Attorney For Lease Of Property. For broader requirements, you may also consider a General Power of Attorney for your property. If your house was let out while you were in town, you may alternatively proceed with  Special Power of Attorney for Recovery of Rent.

30 Jun, 16

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