Successors can execute POA in favour of family member to relinquish their share in property
2)POA should be attested before Indian consulate
3) POA should be registered in India
4) on basis of POA relinquishment deed can be executed in your favour
Legal rights on property
My grandfather had 1 acre land and after his death it got transferred to my grandmothers name. After my grandmothers deaths 1 uncle and 1 aunty relenquished their rights in favour of my father. This relenquishment of rights was done a plain piece of paper in 1987. Thereafter the property was transferred on my fathers name in 1987 in muncipal and govt records with suitable mutation entry. After my father's and mother's death the property is now transferred on my brother and my name. The problem i face is when i apply for a loan with the same property as collateral the banks are asking me to get release deeds from my deceased uncle and aunty or from their suceessors. All the successors are settled in US and UK and are PIO's in these countries. They are in agreement to do the needful but are not able to travel to India to the same. How can I get their NOC/Relenqushment deed/Confirmation Deed/POA so that I can avail loan/develop the property.
Asked 8 years ago in Property Law
Religion: Christian
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11 Answers
The persons who cannot travel to India for executing registered sale deed or release deed they my appoint a power of attorney agent.
His brothers should consult an advocate discuss the issues.in this regard, and for the steps to be taken by all.
1. The banks are right. Rights can be relinquished only through a registered relinquishment deed which can be drawn on a plain paper but the stamp duty has to be paid.
2. If your uncle and aunt are ready and willing to execute the relinquishment deed but are unable to come to India to do the needful they may execute a General Power of Attorney in favour of a blood relative in India to authorize him to execute the deed on their behalf. The GPA may be executed in your favour also,
1. bank's demand is illegal because when property was muted in your father's name in 1987 and no objection was filed from your uncle since lase 30 years itself shows that your uncle has relinquished his right.
2. when this property again muted in your name then you gained absolute right over the property.
3. if this PSU bank you should file a writ of mandamus for appropriate direction from the high court to proceed on the basis of land record. land record in your favour and shows your unfettered right over the property.
mutation itself shows better title because mutation always made by the appropriate authority on the basis of examination of all relevant documents. hence no need to produce such document again it is against the rule of double liability.
Since my uncle and aunty are dead their children are in agreement to give POA. I need to confirm 1)Whether is it better to take POA in favour of my brother and then he make a relinquishment deed in my favour or 2)Whether it would be better to take POA in my name and then make sale deed to third party. Which will invite less taxes and stamp duty as registering POA will be cost + Registering Relinquishment deed will be another cost.
Asked 8 years ago
If you have a party to buy the property then you may obtain the POA deed in your favor and can execute the sale deed on their behalf too, this will be short method including cost effective.
Registering any deed will suffer stamp duty and registration charges.
The stamp duty for registering pOA deed would be less compared to the release deed.
children can execute POA in your broither favour and he can then sell execute relinquishment deed in your favour
2) execution of POA attracts nominal stamp duty
3) relinquishment deed would attract stamp duty depending upon market value of the property and as per stamp act of the state where property is situated
4) execution of POA in your favour would attract less stamp duty and you can then sell property to third party
5) POA should be regsitered
1. By making entries in municipal records, title of property is not conveyed, registered deed of conveyance does.
2. Rights on a property can not be relinquished by writing on a piece of paper. Relinquishment Deed is required to be registered for that purpose.
3. You can ask the concerned legal heirs of your uncle to register the relinquishment deed sent from your end before the appropriate officer of local Indian consulate.
4. Such registration of relinquishment deed before the Indian Consulate is considered as valid as per law which the Bank will accept as collateral for providing loan.
1. whether you get POA or relinquishment deed from the legal heirs of your uncle, the same shall have to be registered to make the same valid.
2. Since they can not come to India for registration the above documents, they can register it before the local Indian consulate and send it to you.
3. They can register a POA in your favour empowering you to sell/gift/settle/relinquish their shares of the property anyway you feel like and after receiving the said registered POA, you can sell the said property or register a relinquishment deed in your favour.
4. They can straight way relinquish their share of the said property in your favour by registering a relinquishment deed. before the concerned Indian Consulates at USA & UK.
when they are agree to you should tell him to execute a relinquishment deed and get its registration before the Indian embassy. then that deed shall be admissible in India.
if he has any problem then you should go with this option: 2)Whether it would be better to take POA in my name and then make sale deed to third party.
1. POA can be even in your favour.
2. Stamp duty and registration charges have to be paid regardless of whose favour the GPA is executed in.