• Validity of power of attorney after the death of Principal

Property was sold through registered power of attorney with full consideration received.
My questions are:
1)whether life certificate of the principal required for sale of every flat developed by the buyer on the land purchased
2)whether a Docotor has to certify the Principal's existence at the time of registration?
3)In rhe event of death of the principal can the buyer still effect sale of the flat as he has paid the full consideration for the property concerned.Power of attorney still valid?
1
Asked 3 years ago in Property Law
Religion: Hindu

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11 Answers

Since POA is coupled with consideration it does not cease on death of principal 

 

2) life certificate of principal not required with sake of every flat 

Ajay Sethi
Advocate, Mumbai
99779 Answers
8145 Consultations

Buyer can proceed with registration without life certificate of principal 

Ajay Sethi
Advocate, Mumbai
99779 Answers
8145 Consultations

1. No

2. No. Only will needs such certification in it. 

3. If there is a Poa then intention of the same wil be taken into consideration

Prashant Nayak
Advocate, Mumbai
34515 Answers
249 Consultations

1. No it is not necessary especially if the power of attorney deed is with consideration.

The power of attorney's are for consideration within the meaning of Section 202 of the Contract Act, 1872. Thus there is no doubt that interest has been created in the property in favor of the power agent hence it is not necessary for the power agent to obtain life certificate every time he intends to sell the flat.

2. Read the above answer.

3. in this situation the provisions of Section 53A of the Transfer of Property Act would also come into play. 

 Section 202 of Indian Contract Act, 1872 read with section 53A of Transfer of Property Act, 1882:

a.  The protection from termination under S. 202 is only available to the agent or the POA holder when the POA holder or the agent himself has an interest in the subject matter of the agency and is not restricted by any express contract.

b.  Even though the POA holder or the agent has an interest in the subject matter, yet the Power of Attorney by itself will not render the ownership right in favour of the POA holder or the agent. It is acceptable that it cannot be revoked but the courts have never treated such documents to be documents of Ownership at any given point of time.

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

he protection under section 202 of ICA, 1872 read alone or with section 53A of TPA, 1882 would not render any ownership or title to its holder in any manner whatsoever but will only grant the limited protection as envisaged in section 202 of ICA, 1872 and/or for possession or specific performance as envisaged under section 53A only against the transferor.

To conclude irrespective of the death of the executant or the GPA holder, section 202 of ICA, 1872 or section 53A of TPA, 1882, do not confer any ownership or title to its holder in any manner whatsoever at any given point of time. They serve a very little purpose as mentioned in the aforesaid sections but law has never given them a status of a title or ownership or convey as required by law.

Therefore they can execute the registered sale deed as a power agent. 

T Kalaiselvan
Advocate, Vellore
89978 Answers
2492 Consultations

Death of principal or attorney will invalidate the GPA for all purposes. Any transaction through such GPA is illegal and unenforceable.  

Ravi Shinde
Advocate, Hyderabad
5129 Answers
42 Consultations

- As per Section 202 of Indian Contact Act, 1872 , Where the agent has himself an interest in the property which forms the subject-matter of the agency, the agency cannot, in the absence of an express contract, be terminated to the prejudice of such interest.

- Since, the property was sold through registered POA with full consideration amount , then it cannot be ceased after the death of the principal and the attorney holder having his right to transfer the property . 

1. No

2. No

3. Yes

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

Dear Client,

As per law, after the death of the seller , his legal heirs should execute sale agreement in favor of purchaser . If refused then file a suit for performance before the court for directing them to register the property in your name.

Hope this clarifies your query and requirement.

Thank you.

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

1. Life Certificate, if available, of the Principal will be an advantage for the buyer of the property.

2.  Yes, a Doctor's Certificate would be ideal.

3.  POA becomes Null and Void, when the Principal dies. However if there were to be money transaction, then the POA would be valid inspite of the death of the Principal.

Shashidhar S. Sastry
Advocate, Bangalore
5624 Answers
339 Consultations

Dear Client,

As per the facts which have been provided, since POA is coupled with consideration it does not cease on death of principal .

Thank You.

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

Best of luck

Prashant Nayak
Advocate, Mumbai
34515 Answers
249 Consultations

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