• Registration by PoA by builder

A builder is developing a project (simplex and duplex) where the Land is owned by a third person and the builder has been given ownership to sale the duplex to buyers by PoA. Is this valid by present LAW?
Asked 6 months ago in Property Law from Bhubaneswar, Odisha
Religion: Hindu

Yes it is valid under registered joint development agreement and POA builder can legally sell the flats.

Shubham Jhajharia
Advocate, Ahmedabad
18230 Answers
71 Consultations

5.0 on 5.0

POA can be executed by land owner to builder to developer the property and execute sale deed on his behalf 

 

2) SC judgment does not bar  execution of POA for development of property 

Ajay Sethi
Advocate, Mumbai
65428 Answers
3960 Consultations

5.0 on 5.0

1) If it is a development agreement and builder has rights as per their agreement. Which should be registered POA with registrar. Than you purchase flat in it. Kindly read MOU and POA agreement.

Ganesh Kadam
Advocate, Pune
7095 Answers
60 Consultations

4.9 on 5.0

Hello,

  1. As far as the POA is a registered one, it is legally valid and entitles the builder for sale in the capacity as POA and he would also have entered into a Developmental Agreement with the owner.
  2. Power of Attorney is a delegation oof powers vested in a person/entity to another through an instrument and the person so delegating the power is ratifying the actions of the POA holder and therefore there is no cause of concern if the POA is registered.

S J Mathew
Advocate, Mumbai
2437 Answers
110 Consultations

5.0 on 5.0

The title to the property by a POA deed is not valid.

In the absence of deed of conveyance no right, title or interest in an immovable property can be transferred. According to legal provisions Supreme Court announced immovable property can be legally and lawfully transferred only by a registered deed of conveyance.

The Supreme Court has announced the sale of immovable property through sale agreement, will transfer or  general power of attorney is not valid. A three-judge Bench of Justices R.V. Raveendran, A.K. Patnaik and H.L. Gokhale said this type transaction “are not transfers or sales and such transactions cannot be treated as completed transfers or conveyances.”

T Kalaiselvan
Advocate, Vellore
55240 Answers
674 Consultations

5.0 on 5.0

Power of attorney does not make you the owner of the property- it is also held by the hon'ble Supreme Court. If you have sold the property without the consent of the original owner, he may challenge the same in court and can also file Criminal case against you. 

Mohammed Mujeeb
Advocate, Hyderabad
9336 Answers
3 Consultations

4.5 on 5.0

Sale by poa is not valid as per Supreme court judgement only transfer of ownership in absence of owner can be carried out by poa.

Prashant Nayak
Advocate, Mumbai
11640 Answers
18 Consultations

4.8 on 5.0

The builder can sell the flats after development and the proceeds shall be shared by the builder and the person owning the land. The contract has to be such. Refer to the contract agreement for clarification. It is a general practice. There is nothing illegal.

Regards 

Rahul Mishra
Advocate, Lucknow
4113 Answers
11 Consultations

5.0 on 5.0

  1. As per the information mentioned in the present query, makes it clear that the builder has just been given a POA for selling the flats to buyers. And I really appreciate your act/ keenness of vigilance towards the present law for property transaction as ultimately now it may help you for sure.
  2. After the recent judgment of Hon’ble Supreme Court, no POA or GPA or SPA would be valid for any immovable property transaction to third party.
  3. There has been an exception to this ruling as the same may be executed by a third person to his or her close relatives only, which is not at all the stand in your case.
  4. So, you knows that he builder may have only construction of project with the owner and he is trying to make people fool.
  5. I would advice you to ask the builder of any agreement wherein the owner has given the property to him by way of sale deed etc., if there is any such document only then he is in the ability to sell those flats otherwise he is simply lying.

Sanjay Baniwal
Advocate, South Delhi
4766 Answers
11 Consultations

5.0 on 5.0

1. If there is a Joint Development Agreement between the builder and the land owner then for the cause if constructions and execution of the JDA the land owner can give valid POA to the developer.

2. In that event the developer on the basis of a registered POA can sell the properties which fall under his allocation.

3. So get the deeds checked by a local lawyer.

Devajyoti Barman
Advocate, Kolkata
17459 Answers
248 Consultations

5.0 on 5.0

Yes, but make sure lest builder authorize any of his employee to register sale deed, This can be possible if clause  in POA to further delegate.

Yogendra Singh Rajawat
Advocate, Jaipur
12246 Answers
13 Consultations

4.6 on 5.0

1. There shall have to be a development agrement signed by the land owner and the builder for constructing the project.

 

2. It should be mentioned in the said development agreement that the builder will be able to take all the action to construct the project and also sell his share of the project leaving the units left and allotted for the landowner as his share.

 

3. Thereafter the said POA can be registered and based on the said POA you can buy the said Unit. 

Krishna Kishore Ganguly
Advocate, Kolkata
22351 Answers
587 Consultations

5.0 on 5.0

Registration of property by authority not power of attorney in case of the builders where company is formed to do the business board resolution in this regard is passed by the board and a certified true copy with the signature of the director authorising any person who signs the document on behalf of the board of directors for the registration of the property it is very common and acceptable there is nothing wrong in that the same certified true copy is submitted to the register office in this regard by the person who is signing the registration deed

Vimlesh Prasad Mishra
Advocate, Lucknow
5376 Answers
16 Consultations

4.9 on 5.0

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