Transferring the Title of Inherited Property and its property tax : A Comprehensive Guide

property tax


Inheriting property in India comes with its own set of challenges, especially for Non-Resident Indians (NRIs) who must navigate through the legal intricacies from afar. Transferring the title of an inherited property is a critical step in asserting one’s legal ownership and involves several procedural steps, including dealing with property tax dues and implications. 

Here’s a comprehensive guide to assist NRIs in understanding and executing the title transfer process seamlessly.

Empowering Local Representation through Power of Attorney

Given the geographical constraints, NRIs can effectively manage the title transfer process by appointing a local representative or professional through a Power of Attorney (PoA). This document serves as a legal instrument, empowering the representative to act on the NRI’s behalf, specifically in matters related to the title transfer and property tax settlements.

Creating and Legalizing the Power of Attorney

The creation of a PoA involves drafting a document that clearly outlines the extent of power granted to the local representative, including dealing with property tax authorities and other legal formalities. This document must be notarized in the NRI’s country of residence and subsequently attested by the nearest Indian consulate, ensuring its legal validity across borders.

Following its attestation, the PoA must be registered in India through the adjudication process, which involves the payment of necessary fees and stamp duty, further solidifying its authenticity and legal standing.

Essential Documents for Title Transfer

Transferring the title of inherited property requires a set of documents, initially presented as attested photocopies, to be shared with the relevant legal authority. These documents play a crucial role in establishing the heirs’ legal right to the property and include:

  • Registered Will: A registered Will is recommended over an unregistered one, as it provides a clear legal document that can be revised at key moments, ensuring the property tax records and ownership details are up to date.
  • Death Certificate of the Deceased: To confirm the passing of the previous owner.
  • Birth Certificate of the Heirs: To establish the identity and legal standing of the new owners.
  • Proof of Relationship: Documents like ration cards or bank statements that corroborate the heirs’ claim to the property and ensure property tax liabilities are accurately transferred.
  • Original Purchase Deed and Registration Documents: These documents prove the legality of the initial purchase and ownership. In their absence, authorization to obtain certified copies from the registrar’s office is required.
  • Encumbrance Certificate: This certificate reflects all transactions related to the property, including sales, leases, and property tax payments, ensuring a clear title transfer.
  • Khata Certificate: This document records the property in the municipality or corporation records, detailing property tax payments, property type, and any conversions.

Steps for Effective Title Transfer

  • Appointing a Local Representative: Choose a reliable local professional to handle the legalities through a PoA.
  • Document Preparation and Legalization: Gather and legalize all necessary documents, including those related to property tax.
  • PoA Registration: Register the PoA in India to empower your local representative legally.
  • Submission of Documents: Submit all required documents to the concerned legal authority, including property tax records.
  • Clearing Property Tax Dues: Ensure all property tax dues are cleared to avoid any legal complications during the transfer process.
  • Legal and Municipal Formalities: The local representative, armed with the PoA, will navigate through the legal and municipal formalities, ensuring the property tax records are updated and the title is transferred effectively.

The Role of Property Tax in Title Transfer

Property tax plays a significant role in the title transfer process. It is essential to ensure that all property tax dues are cleared, and the property’s tax records are updated to reflect the new ownership. 

Failure to address property tax issues can lead to legal complications and may impede the title transfer process. The local representative should liaise with the municipal authorities to settle any outstanding property tax dues and update the records accordingly.


Transferring the title of inherited property in India, especially for NRIs, requires careful attention to legal details, including the management of property tax obligations. By appointing a local representative through a Power of Attorney and ensuring all documents are in order, including those related to property tax, NRIs can facilitate a smooth transition of ownership, safeguarding their legal rights and fulfilling all necessary obligations.

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