I am looking to buy a commercial road side property. While verifying the documents I found the below. 1. In the Encumbrance Certificate I found that property was sold in 2013 by a local builder through General POA and that too after the POA was revoked by the Principal 2. Right Now the legal heirs of the Principal which technically are still the legal owners and the current owner(land docs are in his name) are ready to register the property in our name together. Is this(point 2) possible? Can both parties signing the sale deed make it legal considering the sale to the current owner through POA is invalid post Supreme Courts 2011 ruling anyway. Or can buying this cause us legal trouble in the future?
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If the POA revoked then how could it be sold?? It should remain with the principal. If it is with the principal as oer your information then what happened to the builder who sold it??is he claiming his share in the property?? There is something fishy.
This transaction could land you in trouble.
Here is what happened. Please read carefully and answer. 1. In Jan2006 the owner 'A' of the property signed a POA to a builder. 2.In Nov 2006 the POA was revoked. 3.In 2013 The builder used the POA documents signed in Jan 2006 by the owner to sell the property to 'B'. This is invalid I guess. 4.All current legal documents 'SaleDeed' and 'Patta' of the property are in the name of 'B' who is the new and current owner. We haven't contacted The builder who made this transaction . 5. When we found this issue through the Encumbrance certificate, now the broker is suggesting that even in this situation we can buy the property, and during registration the current owner 'B' and legal heirs of old owner 'A' (The old owner 'A' has died now) will sign the sale deed together to transfer the property to us. I want to know if such a transfer is possible legally or not.??? 6. The logic behind this is that even when the transaction done by the builder is invalid, then the legal heirs of owner A are still the legal owners of the property, and if all the legal owners along with the current owner to whom the property was invalidly sold sign the deed, then the title is transfered and we would become the legal owners.
1. See if the Original owners i.e. legal heirs herein are registering the said property to you in that case the transactions shall be valid and the property can be legally transferred to you.
Yes technically the correct procedure should be that the sale deed between builder and B should be cancelled by court order for same suit can be filed before the court.
Thereafter the legal heirs can make sale deed in favor of your.
Alternatively the legal heirs can confirm the transaction between Builder and B and then B and the legal heirs can register same in your favor.
1) kindly clarify whether POA was registered ?
2) whether POA was coupled with consideration ?
3) if POA was coupled with consideration then A could not have revoked POA
4) he ought to have filed suit to set aside sale deed executed by builder in favour of B
5) ideally sae deed e ducted by builder in favour of B should be cancelled by mutual consent
6) then A can execute sale deed in your favour
It is necessary to peruse POA executed by A , sale deed executed by builder to advice
court should set aside sale deed executed in favour of B as it was executed after revocation of POA by A
If the transaction is pre 2011 then it's valid as the judgement is not retrospective. If presently all legal heirs are ready then it will be a valid transaction
The transaction that happened in 2013 is illegal. B does not own anything.
This doesn't add up. When B is not the owner why will he sign on the sale deed. Who is in possession of the property? A or B??
A dispute must be pending in the civil court between A and B. Don't get involved.
The legal heirs of the deceased principal who executed the said POA in favor the builder and the same was revoked upon the death of the principal, however the builder/POA holder sold the proeprty despite he had no power or rights to sell, shall be an invalid sale deed and illegal.
This however can be rectified by the legal heirs executing a ratification deed ratifying the sale deed executed by the POA holder in favor of the buyer.
Once the ratification deed is executed and if all other aspects are alright and if the legal opinion recommends the purchase, you may proceed
Point No.3 is absolutely right. In fact it is not known that how did the principal revoke the POA deed , also you have not mentioned whether the POA deed was executed by a registered deed.
In the event of the POA deed executed in favor of the agent was by a registered deed, then the cancellation cannot be done unilaterally by the principal alone, he may issue a notice to the agent intimating his intention to cancel the same and both have to execute a registered conceptional deed jointly.
Unless this procedure is followed the POA deed cannot be treated as cancelled even though the principal had issued a notice instructing that the POA deed stands cancelled.
In any case the broker's suggestions (point No.5), is not legally valid, because the property was sold by the POA agent during the lifetime of the owner especially when the POA deed given to him stood cancelled, making the sale deed executed subsequently as invalid.
Therefore the option before the seller is to first get the sale deed executed in his favor ratified through the legal heirs of the deceased owner by executing a registered ratification deed, provided the local sub registrar accepts the same at this belated stage.
Sale was illegal. Dosen`t A or his heirs filed FIR against builder and B ?
Sale deed is void but this will either decide by court or criminal prosecution. Else later you may face the court proceeding and to prove that sale was illegal and POA was revoked in 2006.
B and all heirs will execute sale deed in your favor and will act as seller and not just a signatory.
Sale Deed of 2013 is a invalid document and challengable and now the property has a status of disputed property so I will suggest that first there should be a legal settlement between A and B for which A will file a suit against B before the competent court and in that case out of court settlement be arrived and then you come forward to buy the property.
1. You can legally buy the property from legal heirs of the owners if POA to builder was revoked by owner during his life time.
2. Sale of property to current owner is invalid because it was done on POA which was not valid.
3. You can proceed to purchase the property but still legal heirs have to file suit to set aside the sales deed of current owner.
