• During mortgage of property can we register the POA

1. Property is under mortgage in bank
2. want to execute GPOA from the principal 
3. what is the procedure.
Asked 4 years ago in Property Law
Religion: Hindu

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10 Answers

Principal cannot sell , gift , create third party rights in respect of property without the bank consent

He cannot execute POA for creating third party rights on the property

Ajay Sethi
Advocate, Mumbai
87892 Answers
6207 Consultations

5.0 on 5.0

If the property under the mortgage then to assign rights of it through a POA to sell the appropriate permission from the bank or financial institution is requires. After a Noc such POA can he given.

Though for executing rent a POA can be given by the principle to agent vide a power of attorney.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

For all power after Noc it can be or if given without NOC then POA should specifically mention that after a NOC from the institution only POA can excute a deed.

The POA can be made on stamp.paper according to state and then same can be registered with the sub registrar.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Dear Client,

Property under mortgage cannot alienate as

Still you want to take chance than GPOA with consideration will execute and registered at sub registrar office.

And without consideration with authority to sale/enjoyment/handling disputes than notorised SPOA is sufficient.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

if you want a POA for sale/enjoyment/handling disputes etc then NOC of mortgagee bank will be required

Yusuf Rampurawala
Advocate, Mumbai
6876 Answers
79 Consultations

5.0 on 5.0

1. A mortgaged property can not be dealt with without the written consent of the Mortgagee being the lending bank herein.

2. You want to execute a GPOA for what? What your said GPOA holder will be authorised to do with the said mortgaged property when it can not be sold or otherwise dealt with? Even if you execute the said GPOA, its holder will not be able to legally deal with the said property and his such acts will be considered as illegal, hence invalid as per law.

3. The procedure to execute a GPOA is to get the document printed on a stamp paper of Rs.50/- and then get the same registered before the Registrar.

Krishna Kishore Ganguly
Advocate, Kolkata
26602 Answers
726 Consultations

5.0 on 5.0

1. The mortgaged property can not be dealt with in any way with out the written consent of the mortgagee bank.

2. So, your GPOA holder will not be able to deal with the said mortgaged property legally even if you execute and register a GPOA in his favour authorising him/her to do the said jobs.

Krishna Kishore Ganguly
Advocate, Kolkata
26602 Answers
726 Consultations

5.0 on 5.0

Though property is under mortgage loan, there is no harm in executing the POA to a third person for administering that proeprty, however you should make an additional endorsement about the current status of the proeprty stating that the power agent can be able to transact with the proeprty on behalf of the principal only after the entire mortgage loan has been discharged in full and has been released by the mortgagee with no due certificate duly endorsed.

The owner cannot claim title to the property till the time the mortgage loan is discharged in full, hence the power agent also cannot transact with the property in any manner till the said period.

T Kalaiselvan
Advocate, Vellore
78048 Answers
1543 Consultations

5.0 on 5.0

The power of attorney should be in all respects like sale/enjoyment/handling disputes. If the property is in mortgage what is the procedure

When the property owner himself is not having title to the property under mortgage loan, there is no question of the power agent having any power to sell or alienate or encumber the proeprty in any manner.

Any act done in that manner shall be invalid and illegal.

T Kalaiselvan
Advocate, Vellore
78048 Answers
1543 Consultations

5.0 on 5.0

Hi,

if the property is under mortgage, you will be step in to shoes of the person giving GPOA to you.

Ganesh Singh
Advocate, New Delhi
6646 Answers
16 Consultations

4.5 on 5.0

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