You should register both the MOU and irrevocable POA executed by the builder
2) unregistered document is inadmissible in evidence
Documents
Sir ji Builder constructed building up to 95% completion but he could not sell Flats. Hence, he approached Financer for Money Following terms were decided between them :- 1. Financer will give him some amount in cash and balance by way of NA Land 2. They will execute MOU between them and Further Builder will give irrevocable Power of Attorney in favour of Mr X who is main person (say right hand) of the Financer MOU will contain clear cut clause therein that Builder shall give POA to Mr X on instruction of Financer and simultaneously the said POA will have reference of the said MOU. POA shall be given for sell and it will contain clause that POA holder Mr X can sell Flats in his own name at the price and on terms as he deems fit and further that he (POA holder) can collect sale-consideration in his own name Builder has no objection because he is getting full amount before signing any such papers But Financer wants to be safe and hence he inquires that for 100% safety in smooth selling of Flats and collecting sale-consideration by his man Mr X (POA Holder) what is to be done I want to know that out of two documents MOU and POA, Which document must be registered by paying whole stamp duty and which document can be Notarised Please guide HARIOM
Asked 4 years ago in Property Law
Religion: Hindu
10 Answers
Both the MOU & POA should be registered before concerned registrar by paying stamp duty.
Further, make the payments through bank as far as possible.
Under POA the attorney holder works as an agent only on behalf of the principal.
Collecting money and use it for self under POA even the POA contains such clauses shall be deemed to be a sale which is now totally illegal in india after Supreme court ruling in this regard.
You can not sell flat by your own name because POA does not transfer title to the property in your name. It would be totally illegal.
So POA theory shall not work in real estate field.
Execute proper agreement of sale putting necessary clauses to safe guard all probable conditions and eventualities.
Get it drafted by any lawyer.
1. ONLY a proper Stamp Duty paid (500/-) and Registered POA holder is entitled to execute any immovable property transaction before the local registrar of sub-assurances. IF the POA is not registered, THEN the whole proceedings shall remain illegal. POA can be given to ANYBODY, irrespective of relationships.
2. POA may have strategic clauses and time limitations of the deal (payment terms, validity time period of the POA document ....), for safety of the POA giver.
3. POA can be registered anywhere in India, before the local registrar of sub-assurances and shall be valid throughout India. Stamp Duty on POA is not the same as Stamp Duty paid on Sale /Purchase Deed.
4. POA document can be endorsed abroad by the local consulate office and SUBSEQUENTLY stamp duty paid and registered in India, for it to be legally enforceable.
5. IF person CANNOT go to Registrar office to register POA, THEN Registrar's officer can be requisitioned to visit home, to register POA, on payment of due fees by following due procedure of law.
6. MOU's are not registered but can be notarized by executing them on a 100/- stamp paper.
POA is mandatorily registered. But in this case it's good to register mou also as it includes high stake sale terms
See firstly financer is appointing Mr. X in this arrangement and investing amount so he has to take care of fact that MR . X doesn't cheat him and pays complete amount to him. Otherwise for Mr. X seperate agreement can be made and security from him can be taken .
MOU can be registered power of attorney is required to be mandatorily registered.
MOU shall remain same and irremovable POA will execute. MOU can be notorised, but POA should be registered.
- As per law, A Memorandum of Understanding (MoU) is referred to as a written legal document which completely describes the principles of an arrangement between the two or more parties forming a bilateral or multilateral agreement duly signed by the parties.
- Further, a Memorandum of Understanding between the parties must clearly mention the terms of the agreement, if any one of the parties has done anything against the MoU and due to this the other party has suffered any loss, then the aggrieved party has the right to recover loss.
- Otherside, A Power of Attorney is a document that gives one person the Legal authrity to act on behalf of another person i.e. the principal , and make decisions when the principal is unable to do so in areas such as real estate, business, finance.
- Hence, POA , should be registered by paying whole stamp duty , to transfer/sell the property further and to receive the consideration.
The POA should also be signed by landowner as conforming party.
Both documents should be duly stamped and registered to make then valid for future use.
POA can be executed by a registered document,.
The MOU may not be registered due to the implication of stamp duty.
The registered POA deed will authorise the power holder to execute the registered sale deed and collect the sale consideration amount on his name on the basis of the MOU and this will be a legal transaction.
