• Power of attorney revoked after land registration, Land owner still asking for money

Hi Team,

We bought a land in Bhubaneswar, Odisha in 2011 from a real estate dealer who had the active power of attorney from the land owner and paid in full and even land registration was completed in our name by paying the due registration fee in 2011. Later in 2013, the land owner revoked the power of attorney from the real estate dealer. Now while we are constructing a house on the land, the land owner is demanding money from us claiming he did not receive any money from the real estate dealer and hence we need to pay money for the land to him. As per the land owner, although POA was given to the real estate dealer, he did not have any rights to sell the land it seems. 
As per as I know once a POA is provided, the POA holder has the rights to sell the land and once done and paid and registered in full, the land belongs to the buyer. Please correct me if I am wrong. As a layman, we have few questions. 

Q1. Can the land owner demand money from us, although we purchased the land when POA was active as well as registered the same with full payment. 

Q2. Can the land owner legally stop the construction since he claims the land still belongs to him and does not agree that the POA holder had rights to sell the land.

Q3. Can we take any legal action for such harassment and still continue with the construction work.
Asked 6 years ago in Property Law
Religion: Hindu

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11 Answers

1) at time of sale landowner had executedPOA in favour of dealer

2) hence landowner cannot demand any consideration from you

3) if he has not received sale consideration his remedy is to sue his agent

4) land owner cannot stop your construction

5) file police complaint against land owner under section 504 , 506 of IPC

Ajay Sethi
Advocate, Mumbai
94733 Answers
7539 Consultations

5.0 on 5.0

Hi,

Before answering your queries, I'd like to know few things.

Do you have a copy of above mentioned POA? Have you gone through the POA or consulted some lawyer about the contents of said POA ? Was it a registered POA?

The said POA could be only for the purpose of rent and not for the sale of the property or receiving the sale amount and transferring it to new buyer through registration. It seems you've been cheated/misguided by the real estate agent. If you have a copy of said POA, kindly consult a local lawyer immediately. In absence of "selling instruction" from the owner of the property in the said POA, the owner has every right to to take legal steps against you and demand for money and /or stop the construction on said land.

Simultaneously, if the said POA had "selling authority to the real estate agent from the land owner", you have nothing to worry about even if it has been revoked after the land transaction. Under such circumstances, you can initiate legal action against the previous land owner.

Rajni Sinha
Advocate, Mumbai
425 Answers
39 Consultations

4.6 on 5.0

you have clear and marketable title to property

2) landowner should sue his agent to recover money paid by you to the authoirsed holder of POA

3) go ahead and carry on construction after your plans are sanctioned

Ajay Sethi
Advocate, Mumbai
94733 Answers
7539 Consultations

5.0 on 5.0

Sir, you need not worry since you have paid your dues and the land owner is having trouble with the POA holder and therefore he should take legal action against the POa holder.

If the land owner had objection then he should have contested earlier and since registration of sale deed after paying duty stamp is completed therefore you need not worry.

Hope my reply helps you.

Johnu Kanta Bhuyan
Advocate, Guwahati
194 Answers
3 Consultations

5.0 on 5.0

Hi

In response to your post, you need to clarify the below mentioned points in order to have clarity and give you proper guidance on the issue:

A. Whether the said POA registered ?

B. What is the nature of said POA ?

C. Whether the Principal authorized POA to transact the sale and receive sale consideration on behalf of Principal ?

D. Whether your sale deed capture the total payments made by you ?

E. Confirm whether he (actual owner) is aware of your sale transaction, if yes, with material proof.

F. Finally the POA needs to be perused to have clarity.

In response to your query, assuming that the above points are in your favour they are responded hereunder:

Reply to your Q.No.1:

No, he cannot, subject to aforesaid points going in your favour.

Reply to your Q.No.2:

No, he cannot. He has to prove that your transaction is wrong / forged etc., which under the given situation may not be possible for him.

Reply to your Q.No.3:

Yes, you can. Firstly, be doubly sure that your sale transaction is valid, correct and as per the relevant provisions of law. Thereafter, issue notice to him and also lodge police complaint against him.

Best Regards !

S Srinivasa Prasad
Advocate, Hyderabad
2876 Answers
9 Consultations

5.0 on 5.0

This land was rightly sold to you by the POA holder.

The sale was good, and by flux of time has become final and absolute.

The interference of the land owner is unwarranted and unsustainable. Lodge a FIR against the land owner for trespassing on your private land.

Vibhanshu Srivastava
Advocate, Lucknow
9600 Answers
303 Consultations

5.0 on 5.0

if it is correct as your telling, the land owner has no right to demand money from you.

the land owner has no right whatsoever against you to stop the construction.

you are very much entitled to take any legal action for such harassment and still continue with the construction work.

you file a civil as well as criminal case against that real estate dealer as well as the land owner for protecting your right.

it is better if you send a notice to the real estate dealer for stopping the nuisance creating by the land owner or else it will be treated as conspiracy and connivance between the land owner and real estate dealer for snatching some money from you out of nothing.

Manish Paul
Advocate, Kolkata
287 Answers
2 Consultations

4.9 on 5.0

Q1. Can the land owner demand money from us, although we purchased the land when POA was active as well as registered the same with full payment.

The landowner's demand for money again when you have already paid the promoter is illegal, ask him to go to court where you can establish your purchase and title to the property.

Q2. Can the land owner legally stop the construction since he claims the land still belongs to him and does not agree that the POA holder had rights to sell the land.

He cannot do so, if at all he has got any grievance he has to aproach court only and not to interfere in this manner, you may obtain an injunction agaisnt him

Q3. Can we take any legal action for such harassment and still continue with the construction work.

Yes you can obtain injunction and and continue with the construction work

T Kalaiselvan
Advocate, Vellore
84934 Answers
2197 Consultations

5.0 on 5.0

Now the land owner claims that since he did not receive money from the real estate dealer we need to pay him. POA was revoked almost after 2 years of land purchase and registration in our name i.e. in 2013.

The POA was a registered document and very much valid while the power agent executed a registered sale deed in your favor.

Therefore you need be afraid of the land owner about this. You may aproach court and obtain a injunction against the owner to not to interfere in your possession and enjoyment of the property on the basis of the sale deed in your favor.

T Kalaiselvan
Advocate, Vellore
84934 Answers
2197 Consultations

5.0 on 5.0

Go ahead and lodge an FIR against the said person.

File a caveat in the Civil Court to check that they do not obtain any stay order.

Anilesh Tewari
Advocate, New Delhi
18078 Answers
377 Consultations

5.0 on 5.0

Also, since the POA was active and was revoked lately the person has no right over the land, if he has not received money then he an file a case against the builder and not against you.

Regards

Anilesh Tewari
Advocate, New Delhi
18078 Answers
377 Consultations

5.0 on 5.0

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