• Power of attorney to builder

Hello Team,
I'm currently residing in USA and have booked an apartment in Chennai. The construction is happening in multiple phases and my apartment is in phase 1 which is now ready to move . I have given POA to my mother to execute all documents on my behalf. Registration will happen after the current lockdown. The builder is now asking for a Power of Attorney to the builder for construction of common amenities like electricity, water, etc., which would be shared between phase 1 and 2 and to appear before the government bodies like the Electricity board, Pollution control board, etc., on behalf of me. I have few questions regarding this POA to the builder.
1. Is it safe to give Power of Attorney to the builder? The document outlines the tasks that can be performed by the attorney but this is new to me. Will there be any issues in future for me?
2. Is it a common practice for big promoters and builders to get POA from owners of Phase 1 projects if they want to do any development for other phases? 
3. How long is this POA valid and can I rescind it anytime If I want to?
4. Should I concerned with anything else and look for any details in particular in the POA?
Thank you!
Asked 18 days ago in Property Law
Religion: Hindu

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9 Answers

How can a builder ask for a PoA and for what? He is constructing the apartment and you have to pay him money. You must ahve paid the builder some amount as advance. That's it.

I haven't heard of anything like that.

PoA is valid till the time you want it to. All the powers to be given when and where to be used and limitations are clearly stated in the PoA.

Rahul Mishra
Advocate, Lucknow
12649 Answers
31 Consultations

5.0 on 5.0

1.  This is a common document which would be utilised by the builder for the purposes of the tasks specifically mentioned in it, you my ensure that no other task has been mentioned in the power of attorney deed to be executed in his favor to avoid misuse.

2. The builders need this  POA to develop further towers and expand the amenities by coordinating with local panchayat and statutory bodies for their future , under construction towers and already handed over towers since water, power, drainage etc are common and need to be pooled together for seamless entry and exit into all towers

If any owner complains and file a case stating that under construction tower in the near vicinity is polluting , disturbing and water line expansion can not be taken from such tower to common sump by forming Assn and get stay order, builder will be in trouble to get the stay vacated .

Hence builders lawyers are too smart in getting the U/T and POA to stop such menace and have effective control over township until it gets developed full and fully.

3. You can add the limitation clause in the POA deed if you are so much worried about it.

 in India Bulls Green project , they were asking it for 2 years and with Opaline , they are asking for 10 years.

Thus it is not uncommon feature.

 

4. There should not generally  be any cause of concern on this issue. 

T Kalaiselvan
Advocate, Vellore
72756 Answers
1110 Consultations

5.0 on 5.0

Only specific poa to do the required task can be given. 

Yes it's needed for various permission etc

You can draft the same as per your nature of work

Yes it should be specific to the necessary requirements only

Prashant Nayak
Advocate, Mumbai
23442 Answers
49 Consultations

4.4 on 5.0

Don’t give POA to builder 

 

2) it is valid till revoked 

 

3) you can revoke will whenever you please 

 

4) execute specific POA only if required 

Ajay Sethi
Advocate, Mumbai
82671 Answers
5249 Consultations

5.0 on 5.0

1. He does not need a POA to begin construction of common amenities.

2. You have booked the apartment and he is the builder. It is for him to complete the construction and deliver the property to you. He does not require any POA from any buyer to commence and complete the construction.

3. Don't fall into this trap.

Ashish Davessar
Advocate, Jaipur
30635 Answers
893 Consultations

5.0 on 5.0

1.) When the possession of building is still in builder hands, and building is not completed by default all rights has builder has a developer. So, no need to give POA to builder. Builder will be acting as developer and his responsibilities to complete the projects.  A BIG NO for POA.

 

2) Why he want POA when he has not completed project as per municipal corporation law, RERA law and TP Act.

 

For point 3&4) You have to go as per Agreement to Sale details. Kindly read those and act accordingly.

Ganesh Kadam
Advocate, Pune
12081 Answers
136 Consultations

4.9 on 5.0

Dear Sir/Ma'am, 

1. if you have no other choice but to execute the POA in favour of the Builder you may go ahead. 

2. the POA is valid until it is revoked, and it can be revoked at any point by you.

3. it might be required to initiate the construction and work for the common amenities. 

4. in order to be safe you can restrict the activities in the POA. 

Thank you 

  • For further assistance, you can book a consultation with me. 
  • If you liked my answer, please give a good rating and leave a review. 

Anik Miu
Advocate, Bangalore
1516 Answers
18 Consultations

5.0 on 5.0

1. Strictly mention the specific tasks to be performed by him based on the said POA  within a fixed time frame.

 

2. This is not very common. However, you will be safe you you authorise him to do only the specified jobs as per rule within a fixed period of time.

 

3. You can mention the time period for which the said POA will remain valid. You can also  cancel the said POA by issuing him a letter and publishing the gist of the letter in local Newspapers.

 

4. First look for the details f the proposed POA. The details are required to be perused for further advising in this regard.

Krishna Kishore Ganguly
Advocate, Kolkata
25589 Answers
726 Consultations

5.0 on 5.0

-    Builders do lot of things.

This is not common but happens with some builders who want to protect themselves.

 

-    Better try to refuse.

 

-    Conditions on which you can give POA.

Don’t give irrevocable POA.

Don’t give unconditional POA.

Don’t give unlimited duration POA. Have a time fixed POA.

 

-    Don’t give POA with all conditions mentioned by builder.

Verify POA conditions with Lawyer.

Ankur Goel
Advocate, Bangalore
311 Answers

4.9 on 5.0

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