Property registered via irrevocable POA
I need an advice whether the property title is clear and marketable. Below is the sequence of the events.
1. The said plot was allotted to Mr X by Kanpur Development Authority in 09-06-75 however the registry was executed via POA which was duly registered in Consulate General of India in Canada.
2. Thereafter the POA was revoked in 15-05-90 via executing revocation of POA which was also registered in Consulate General of India in Canada.
3. On the same day (i.e. 15-05-90) the POA was given to another relative and this POA was also registered in Consulate General of India in Canada. This POA gave all the powers to the POA including sale of property and to do all acts and deeds and things in respect of the said property. Moreover, it was expressly written in the POA as irrevocable POA.
4. Thereafter, the current POA sold the plot to Mr Y in 1995 however the property was registered (via registry) in 2007.
5. The current owner i.e. Mr Y, has all original documents such as
a. Original sale/allotment deed executed by Kanpur Development Authority
b. Original revocation of POA executed on 15-05-90
c. Original POA executed on 15-05-90
d. Original registry executed in 2007 on the basis of POA
6. The said property was a lease hold property and it has been converted to freehold by executing freehold deed in favour of the current owner i.e. Mr Y in 2014 by Kanpur Development Authority after paying huge amount of penalty for non-construction of Rs 75 lacs (34% of the current property price).
7. Mutation in the development authority, house tax, water tax all is in his name.
We have no means to verify that principal (i.e. Mr X) was alive when the property was registered in the name of Mr Y in 2007 via the POA however since last 19 years the property is in possession of Mr Y. Since this is an irrevocable POA (as mentioned in the POA) will it make any difference if the principle was not alive at the time of registry?
Asked 9 years ago in Property Law
Dear Ajay,Mathew and Ashish,
Many thanks for the response. Can you please advice on the below
Considering, substance over form and the below points, can I purchase the property? Secondly is there a way to cover myself while buying the property- like it can be mentioned in registry that in case of any dispute the seller (Mr Y) would be responsible and should pay the entire amount back to me along with interest.
1. The current owner i.e. Mr Y, has all original documents such as Original receipts of payment made to development authority, Original allotment deed executed in 1975, Original Revocation of POA executed 15-05-90, Original POA executed on 15-05-90, Original registry executed in 2007 on the basis of POA etc.
2. Further Mr X purchased plot on lessee for 99 years from the development authority in 1975
a. Mr X did not construct anything on the plot.
b. Moreover, Mr X did not get the map sanctioned from the development authority
On the contrary, Mr Y paid penalty for non-construction of Rs 75 lacs (34% of the current value of the property) and got the property converted from lessee hold to freehold after paying the relevant charges (via freehold registry executed by development authority after verifying the chain deeds and POA’s) and also got the map scanned in his favour. Mr Y is in possession of land for the past 19 years and he is using part of land as his office for past 10 years.
3. In the registry executed in favour of Mr Y in 2007 via the POA, it is mentioned that the Mr X was alive at that time and in the POA it is expressly written that the POA is irrevocable however the consideration is not mentioned in the POA although it was paid in 1995 when he was alive. The POA is a relative of MR X. I have no means to verify that MR X was alive at the time when the registry was executed in favour of Mr Y as he was staying in Canada.
4. I had applied for Home loan from the bank to buy this property. Private bank has sanctioned the loan however nationalized bank is asking for proof that Mr X was alive at the time the registry was executed in favour of Mr Y.
5. The current owner i.e. Mr Y is a well know and wealthy party. The property is being traded at price slightly (10%) below the stamp duty value and hence the entire money is being by cheque i.e. it is white money and it will be registered for that amount. Moreover, the property is slightly cheaper (15%) than the market rate not because of the defect in property papers but it was lessee hold property and map was not approved, which I have got it done after investing 8 months and paying huge penalty of Rs 75 lacs (34% of the current value of property) however it has been borne by the seller.
Will this defect always remain in the property or after certain years or after my registry it would not be very relevant. Will I face the same problem, if I want to sell it after 5 to 10 years from now.
Many Thanks for all the help and advice
Asked 9 years ago