• POA to builder

As a seller , If I give POA to builder to sell land and POA agent sells it to another buyer,
how many sale deeds will be created? 
what will be entered in sale deed when buyer receives sale deed?
is my name entered in deed as Seller or POA builder name entered in sale deed as seller ?
Asked 6 months ago in Property Law
Religion: Hindu

16 answers received in 1 day.

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18 Answers

A power of attorney holder can only do he is instructed to do.if the PoA holder sells the land to a person to whom you want to sell, the sale deed will contain your name as you are the owner of the property.

It will also contain his name as the PoA holder and signing on your behalf.


I may remind you that the supreme court has deprecated transactions wherein people give PoA so that stamp duty etc.can be avoided.

Development agreements can be made by a person with a builder.

GPA transactions are not transactions or sales as per the supreme court.

Rahul Mishra
Advocate, Lucknow
13045 Answers
42 Consultations

5.0 on 5.0

Your name is entered in sale deed as seller through POA executed in favour of builder 

 

one sale deed would be executed by builder on your behalf 

Ajay Sethi
Advocate, Mumbai
84049 Answers
5477 Consultations

5.0 on 5.0

There will be one sale deed only

You as a seller acting through your POA holder and the buyer will be stated in the sale deed 

Yusuf Rampurawala
Advocate, Mumbai
6432 Answers
54 Consultations

5.0 on 5.0

You are the owner of the property hence your name will remain as seller in the sale deed but the sale deed would be executed by the POA agent on your behalf. 

The builder will be a power agent to the seller. 

T Kalaiselvan
Advocate, Vellore
74146 Answers
1202 Consultations

5.0 on 5.0

Hi

one sale deed will be there.

Your name and after your name , through constituted power of attorney xyz will be written. The same will be mentioned every place wherever your name as the seller  is mentioned.

Along with the sale deed POA will be attached.

Wordings of the sale deed will be the same except your name will be accompanied by the wording 'through his constituted POA xyz' and your POA will sign.

 

 

Thresiamma G. Mathew
Advocate, Mumbai
1629 Answers
185 Consultations

5.0 on 5.0

Hello, 

  1. As the seller and owner of the property, your name will be entered as Seller in the Sale Deed. It would mention the builder as the PoA through whom the transaction is done. 
  2. There will be only a single Sale Deed. The PoA is only your agent and the Agreement is between you and the purchaser. 

S J Mathew
Advocate, Mumbai
3339 Answers
157 Consultations

5.0 on 5.0

1. For one transaction single sale deed is to be executed.

2. Yoir name alone would appear as ' seller' but represented by your POA holder namely XYZ.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
363 Consultations

5.0 on 5.0

Hi

1) Vide Section 54 of transfer of property act, and also Indian contracts act, it is mandatory that the  Your name will have to be mandatorily  entered in the sale deed as Owner and your power of attorney holder name will be entered as your Agent. . So under heading vendor, your name and your power of attorney holder name will be mentioned.

2) The sale deed will be signed on your behalf by your POA agent (so technically execution of sale deed will be complete, once your POA agent affixes his signature as your agent at the time of registration of sale deed).

3) Kindly ensure that the POA granted by you to the builder is duly registered at Registrar office as unregistered power of attorney is not valid and cannot be used by your POA agent for entering in to sale deed on your behalf. 

Hope this information is useful. 

Rajgopalan Sripathi
Advocate, Hyderabad
2119 Answers
394 Consultations

5.0 on 5.0

As an individual you can issue power of attorney only to your blood relation duly certified by the Indian Consulate in USA

Vimlesh Prasad Mishra
Advocate, Lucknow
6829 Answers
23 Consultations

4.9 on 5.0

Dear Sir,

1) As you are the owner of the property, the sale deed will have your name as the seller. The builder name will also be mentioned as your POA.

2) There will only be one sale deed that will be executed and has to be registered.

Thank you

Anik Miu
Advocate, Bangalore
2493 Answers
26 Consultations

4.9 on 5.0

In sale deed builder name will be entered for the transaction and your name will be in the history of property paragraph.

Ganesh Kadam
Advocate, Pune
12192 Answers
151 Consultations

4.9 on 5.0

There will he only one sale deed.

Your name would be mentioned as the seller whose signatures would be done through power of attorney holder and the same would be mentioned in the sale deed.

Both your the power of attorney holder name would be entered in the sale deed but the signatures would be done by power of attorney holder in your stead.

 

 

 

 

Siddharth Jain
Advocate, New Delhi
5759 Answers
83 Consultations

5.0 on 5.0

1.      That is not POA that is Special Power of Attorney. The attorney is at liberty to sell the property bit by bit. He can only sell the property for which  measurement and boundaries are given if the principal/giver of SPA wants to get different pieces of properties he has to give different SPAs covering each part of property.

2.      Name of principal name will be mentioned as seller and name of attorney will be mentioned as SPA.  

Ravi Shinde
Advocate, Hyderabad
1431 Answers
16 Consultations

5.0 on 5.0

Ok I get it

The builder is probably trying to make a quick buck from this transaction without being liable to pay any capital gains tax

If builder pays you and thereafter using your POA sells the property to another buyer then it means that the consideration paid by buyer to builder will be greater than what the builder paid to you and in this way the builder will not have to pay any capital gains tax

So whatever money is paid to the builder will be taken as consideration paid to you since you are the principal 

So for eg. Builder pays you 100 

Then he sells the property for 120

20 is the builder's profit 

However for purpose of capital gains tax, the sale price will be considered as 120 and not 100

So you end up paying more capital gains tax 

Find this transaction entirely dicey and suspicious 

There is something more than meets the eye 

Yusuf Rampurawala
Advocate, Mumbai
6432 Answers
54 Consultations

5.0 on 5.0

buyer can be different person 

 

builder is acting as your agent to sell the property 

Ajay Sethi
Advocate, Mumbai
84049 Answers
5477 Consultations

5.0 on 5.0

You may have to decide whether to sell the property through a power of attorney holder or to sell it directly.

If you are desirous of selling the property through a power of attorney agent, then you may have to make a clause in the POA deed stating that the sale consideration amount to be credited to your bank account directly by the buyer and should not be paid in the name of the POA holder. 

This will enable you to get the sale consideration amount directly from the buyer to your account.

T Kalaiselvan
Advocate, Vellore
74146 Answers
1202 Consultations

5.0 on 5.0

Dear Sir,

If sale is registered as a gift deed then the payer and buyer will be different. 

There will not be any problem while registering the sale deed as a gift.

There is no requirement for buyer or payer to be same.

Yes you can add clauses into POA as it is fit as per your requirement.

Thank you

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Anik Miu
Advocate, Bangalore
2493 Answers
26 Consultations

4.9 on 5.0

it will be generally executed by him as he is POA. Your name will definitely be mentioned along with then POA details

Prashant Nayak
Advocate, Mumbai
24215 Answers
51 Consultations

4.4 on 5.0

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