• Development rights power of attorney

Hi
I am planning to purchase a land. I am cross some property developer selling the property on plot basis. I paid them advance to them. Now they are saying we cannot give 7/12 as land is below 11000 sqft. Instead of 7/12 we can give development rights power of attorney through haveli.

Is this is safe to buy the property.

 Will I face the problem at the time of sales of property to another party.

As I had heard development rights power of attorney can be transferred only 2 times. So when I went to sales to these property to another party. Another party will not pay the good price as he cannot sales the land to third party.if I revoke the my power of attorney and do the direct then power will go back to owner again

I need some guidance.

Regards

Ramit
Asked 4 years ago in Property Law
Religion: Hindu

2 answers received in 30 minutes.

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9 Answers

1, The 7/12 Extract Documents is an important indicator of the legal status of the plot. It is used for finding information about the ancestral information of any particular land. Past disputes, litigation, court orders etc, that could affect the land ownership or its legal stature can be found in this piece of document. Apart from this, 7/12 Extract is a record of all the activities done on the land in the past. It is important to document so as to identify the land to establish the exact location along with its physical nature. For agricultural land, the extract also keeps a record of the crops that were last grown on the land.

2.In that event it is advisable to avoid this plot ans zero in on some other plot where such extract is available.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
390 Consultations

5.0 on 5.0

Don’t purchase the property

2) to confer clear and marketable title sale has to be registered sale deed

3) Don’t agree to purchase property through POA . It ceases on demise of principal unless coupled with consideration

4) you will face problems when you sell the property

Ajay Sethi
Advocate, Mumbai
87212 Answers
6048 Consultations

5.0 on 5.0

If sale deed is executed in your favour you are absolute owner of property

2) no need for POA and development rights

3) POA coupled with consideration does not cease on death of principal

4) if only POA and development rights are executed in your favour you can on basis of registered POA execute sale deed in favour of purchaser

Ajay Sethi
Advocate, Mumbai
87212 Answers
6048 Consultations

5.0 on 5.0

A Development Rights Power of Attorney can only confer upon you the right to develop upon the said property. it does not transfer any rights over the property. Sale Deed is necessary. It necessarily has to be registered, and proper stamp duty paid. Once you have sale deed in your name, the previous power of attorney would be void, anyway, since the developers won't be the owners of the said property any longer.

Usually when a Developer allots plots, both the parties enter into an Agreement for Sale, with a clause that when construction of said property will be completed, a sale deed will be executed.

Also, you cannot sell any immovable property to second owner by way of Power of Attorney. A Sale Deed has to be executed, duly stamped and registered.

Divya Srivastava
Advocate, Mumbai
19 Answers
2 Consultations

5.0 on 5.0

Transfer of title cannot be effective through Power of Attorney. it is a measure used by builders - purchaser to evade registration fees, when u are paying full consideration than only registered sale deed is advisable.

Yogendra Singh Rajawat
Advocate, Jaipur
21482 Answers
31 Consultations

4.4 on 5.0

I would not advise you to purchase the said property as the sale deed is not registered.

i would not advise you to purchase the said property through POA as the SC has put a bar on the same and you may have problem in selling the same at a later stage.

Regards

Anilesh Tewari
Advocate, New Delhi
17923 Answers
367 Consultations

5.0 on 5.0

You will be the absolute owner of the property if the sale deed has been executed in your favor.

There must be some consideration along with the POA.

regards

Anilesh Tewari
Advocate, New Delhi
17923 Answers
367 Consultations

5.0 on 5.0

The sale through power of attorney can be done only if the power of attorney deed is a registered document.

The power agent can only sell or do any other transaction as mentioned in the deed but he cannot claim ownership or title to the property.

The 7/12 document is not an evidence of title or it cannot be considered as title document.

The registered sale deed document only will confer the title.

However the 7/12 document is the record of revenue details and the transactions in respect of the property with the revenue department.

The development rights is an agreement between the developer and the owner of the property.

You have to get a proper legal opinion from a local advocate on the subject matter by producing all the relevant papers/documents pertaining to this property after that based on the advocate's opinion you can decide about buying the property or to discard the deal.

Do not go by any hearsay misguidance.

T Kalaiselvan
Advocate, Vellore
77366 Answers
1458 Consultations

5.0 on 5.0

If he do the sales deed and then also gives Development rights power of attorney.

And in power of attorney if take in consideration of cease of principal with in proper deed.

Any power of attorney is valid only between a principal and the power agent, a third party cannot claim rights by a sub power of attorney deed executed by this power agent to another person.

Also a POA deed is valid only till the principal is alive and it will automatically be cancelled after the lifetime of the principal or if the principal revokes the same.

Can I also sell the land on Development rights power of attorney to second owner.

Can power of attorney is cannot be transferred 2nd times

T Kalaiselvan
Advocate, Vellore
77366 Answers
1458 Consultations

5.0 on 5.0

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