Rights of power of attorney holder in resale flat
I am going to buy a resale flat (under construction now) from the owner. But the owner (1st party) is going abroad very soon and it is unlikely that we will be able to complete the bank loan and other agreements before he leaves India. I have already paid him the 20% of the property value via net banking and for rest of the 20 % bank is about to sanction the amount which may take 2-3 days. We have already prepared buyer & seller agreement (assignment agreement) and affidavit from buyer and seller which are stumped and notarized. Now the builder is asking for a conditional NOC from the bank to issue NOC from the builder’s side to the bank that we can internally transfer the loan amount among buyer and seller to pay rest of the amount to the seller (1st party) from my side. It is unlikely that we will be able to complete all documentation before the 1st party is moving out of India. In this situation, the 1st party (owner of the flat) is ready to give power of attorney to one person close to me who on his behalf can do remaining work with the bank and the builder. I request your comments on what are the rights this power of attorney holder have and what all he can do on behalf of the 1st party when he is not available here? Can Power of attorney holder do registration of the flat in the name of the 1st party (if the need be) and resale the same property to me? Is he legally allowed to do that? If we (the buyer and seller) not able to do the property transfer on time, then the seller is ready to give me a court affidavit stating that he has taken the money from me as advance to sell the property (which is under construction) at the price agreed between us after the flat is registered to his name and other conditions like he will not sell it to anyone else or increase the price etc . How valid these type of affidavits considering the fact that the seller will be out of the country very soon. I REQUEST YOUR ADVICE ON HOW TO PROCEED IN THIS SITUATION.
Asked 2 years ago in Property Law from Bangalore, Karnataka
if selller has to give power of attorney it has to be to its close relative only . it should be his family member . the said power of attorney should be registered . only then can seller through his POA sell the flat to you . in such transactions it is better to play safe . contact a local lawyer . get POA drfated by him and get it duly stamped and registered .
affidavits wont serve the purpose , either seller should sign sale deed or his registered POA holder . thye poA can appear for registration purposes if he is duly authorised
Hi, he can execute the power of attorney but when the sale clause is there in GPA he has to pay the registration fee same as like that of sale this is the difficulty in executing power of attorney.
Why shouldn't get the PoA executed by the seller in favour of yourself.It is quite permissible under the T.P.Act.
1. Make sure that the seller agreement and the PoA are perused threadbare by a lawyer. Sign it only and only if the lawyer gives you a go ahead. Once the agreement is signed there are certain rights which come into existence and others which pale into insignificance.
2. Affidavits of this nature have no value in the courts. The rights are to flow out of the buyer-seller agreement and the PoA, and not out of an affidavit. An affidavit can be got attested in just Rs.20/-. It has thus no legal value attached to it in case of a sale-purchase transaction.
3. The seller can sell the property to you through a POA, but for a PoA to be legally valid there are many conditions required to be fulfilled. A clause which may work in favour of the seller may imperil your legal interests as a buyer. It is thus imperative that you sign the agreement only after the PoA is perused by your lawyer and he gives you a green signal.