• I want to understand rules regarding property purchase

Hi Sir,

We intend to purchase a property in Delhi and the owner is an NRI working abroad in a govt. service.
The owner has made a power of attorney in her husband's favor.
I want to understand the rules and regulations around it:
 - How is the power of attorney registered in India?
 - What additional formalities are required in such cases?
 - What are the other different things we should be cautious about in such cases?

Regards....
Asked 8 years ago in Property Law
Religion: Hindu

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13 Answers

1) is the POA attested before indian consulate

2)if POA is attested before indian consulate the husband can apply to sub registrar office for registration of POA

3) then husband as POA holder can execute registered sale deed in your favour

4)check whether property taxes and society dues have been paid till date

5) obtain no due certificate and NOC for sale of property from the society

Ajay Sethi
Advocate, Mumbai
100092 Answers
8174 Consultations

1. Obtain NOC of the property from the society to check that all the dues are paid or not.

2. check if the consulate has approved the POA, if yes then the husband will have to get it authorized from the registrar office to make it a valid POA.

3. Get a title report from a local lawyer to check that the title of the property is clear and marketable.

Regards

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

- It is registered in the office of the Sub-registrar, just like the registration of any other instrument. Engage the services of an Advocate to get the POA registered.

- Before buying the property, get done the legal due diligence of the property so as to be ascertained as regards to the title of seller.

Vibhanshu Srivastava
Advocate, Lucknow
9770 Answers
323 Consultations

Power of Attorney registration, or the registration of any other document such as a rental agreement such as a leave & license document in India is done at the offices of the Sub-Registrar. The registration process in India involves:

•Visiting the sub-registrar office with the document to be registered. Power of Attorney prepared in India is done on stamp paper whereas if prepared abroad no stamp paper is required. NRIs who are not present in India should get the POA holder to get the registration done.

•Original documents with copies showing proof of address and proof of identity. [Self-attestation of documents is allowed these days in most cases.]

•Two passport size photographs [Sub- Registrar will take your photo also at time of registration along with thumb print]

•Two witnesses who should also have proper identification.

The Basic Principles To Remember:

1. The general rule of power of attorney is that it should be strictly construed.

2. Unless an express power is conferred on an agent to enter into contracts of guarantees on behalf of his principal or to execute or negotiate , negotiable instruments for his principal jointly with others

3. An agent cannot by his acts bind the principal to a larger extent than he is empowered to do under the power of attorney.

4. Fraud by the power agent does not bind the principal. He cannot be sued or otherwise held responsible for fraud by the agent

5. If the power does not authorize the agent to carry on a business except with limitations any act done by him in excess of such power will not bind the principal.

6. For example power to dispose of property does not confer a power to mortgage the property.

7. Power to manage immoveable property cannot permit principal's ornaments which are a moveable proper

As per law, the principal also has the right to rescind a POA. "If there is a mention of a consideration (amount) in the POA, the holder can claim that money through legal means. But he cannot claim rights over the property once the POA is rescinded or the principal dies,"

GOPAL VERMA

ADVOCATE ON RECORD

SUPREME COURT OF INDIA

Shri Gopal Verma
Advocate, Delhi
422 Answers
23 Consultations

Hi, the power of attorney is supposed to be registerd at the registrar office .. If it is a registerd attorney , you can go ahead for purchasing the property ..

Hemant Chaudhary
Advocate, Gurgaon
4632 Answers
67 Consultations

Power of attorney is valid only family members. And it is registered with some fees due to registrar office with two persons duly signed in power of attorney. And power attorney holder can sell the property but first of all you need to enquiry in this property related issues such as any case are pending or any disputed matters in this property because many fraud are made power of attorney so you are buying any property search any dispute on going in district civil court or high court. And also get name of property holder in revenue department in your city. So carefully buying this property.

Sukhendra Kumar Pandey
Advocate, Satna
31 Answers

Respected sir..

firstly you would have to understand that what does power of attorny means.. the property is of an NRI working abrod and she has confred her all the rights to sell that property to her husband . and he is the legealy owner of that property..so don't wory all the process shall remain same in as you are buying form a dirct owner not to a person to whom power of attorny is confred ...no need to worry.

Thanku

Dinesh Sharawat
Advocate, Delhi
1266 Answers
12 Consultations

Respected sir ...

The law on property deals through a power of attorney {POA} a legal document to empower a person to act on behalf of another all are set to get together the government is planning for making mandatory registration of {POA} But haven't amend by the govt so no need of registration..

Thanku

Dinesh Sharawat
Advocate, Delhi
1266 Answers
12 Consultations

It does appear from the circular cited by you that in Delhi registration of POA executed abroad is not mandatory

2) authentication through SDM office should suffice

Ajay Sethi
Advocate, Mumbai
100092 Answers
8174 Consultations

Getting the same attested from registrar, sub registrar or SDM varies from state to state.

The circular as shared by you holds good, however practically it has been seen that authorities usually do not accept the POA this way, still you may try and get the work done.

Keep a copy of this circular handy.

Regards

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

hi

there are different authorities authorized for registeration of POA in different areas,

1. confirm the authenticity of POA

2. if authentic then go ahead and purchase as POA assigns her husband to take action

3. Registration of POA is utmost important

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

If the owner is in abroad and a NRI and intends to sell this property through his power of attorney agent that is her husband, she can execute a POA deed from foreign country and get it attested by a notary public of that country or by any official of the Indian embassy/high commission, send it back to her husband or the power agent in India, who will get it registered before the concerned registrar's office by paying applicable stamp duty.

Other than this, you may verify the original sale deed lying in the name of the current owner, tax paid receipts, EC and all other revenue records in her name all other documents related to this property.

T Kalaiselvan
Advocate, Vellore
90295 Answers
2513 Consultations

Please validate if this circular is correct and based on above information please guide us whether registration of POA for above purpose is necessary or only franking by attorney himself and without visiting SDM office/Controller of Stamp is sufficient

The link what you have sent is about the stamping of the power of attorney deed only and do not speak about the registration aspect of the power of attorney deed.

The transfer of immovable property through a power of attorney deed can be by a rgistered deed alone, hence you decide about the underlying factors when you confront the issues.

T Kalaiselvan
Advocate, Vellore
90295 Answers
2513 Consultations

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