This is not a registered deed that you have to transfer the property by a sale deed.

You have entered into an unregistered sale agreement even though you have obtained loan from the bank.

You may take care of the bank loan accordingly and can authorise your father in law to sign the papers on your behalf to cancel the unregistered sale agreement. For this purpose a registered POA deed is not mandatory because the document you would like to cancel i.e., the sale agreement is an unregistered document and it is going to remain with the builder itself. 

Just because you and your wife may not be present physically to carry out this cancellation task, you can give a notarised power of attorney deed to your father in law authorising him to sign the papers on your behalf

1. Since the property is not yet registered in your name and you want it to be sold to a prospective buyer, then you can go for Assignment Deed with the prospective buyer.

2.  You and your wife can authorise your FIL through POA and register the POA in Ghaziabad.

You need to execute POA in favour of blood relative 

2) your wife can give POA to her father . You cannot do so as he is not your blood relative 

3) you can enter into tripartite agreement with buyer and builder for sale of property 

POA is the easiest way in the said scenario to sell your property

Dear Client,

To transfer your property, you have three legal options: sale deed, gift deed and relinquishment deed.

A PoA is not an instrument of transfer in regard to any right, title or interest in an immovable property,” a three-judge bench, headed by justice RV Raveendran, said, adding that property can legally be transferred only through a registered sale deed.

The clause in agreement used to state that the buyer had to pay the developer a ‘transfer charge’.

A power of attorney is not a valid instrument to transfer property titles when buying or selling a property.

Thank You.

As you and your wife are non-residents, you need to execute a special PoA in favour of your FIL  living in Ghaziabad for the specific purpose of transfer of the property in favour of the prospective buyer. In the PoA, you may authorize your FIL to close the bank loan, obtain the documents from the bank and hand them to the buyer on your behalf. The PoA needs to be suitably drafted by a competent lawyer.  The PoA has to be either notarized OR attested by our Embassy/Consulate in the US. Within three months of its arrival in India it needs to be adjudicated (assessed for payment of appropriate stamp duty for the PoA) at Ghaziabad. Once it is done, your FIL can legally act on your behalf. 

If POA is given in favour of non blood relative it has to be stamped as conveyance 

stamp duty on conveyance may vary from state to state 

you can execute gift deed in favour of wife for your share in property 

wife can then execute POA in favour of her father to sell the property 

This is a transfer of a property with an unregistered title deed.  

Hence the POA is just a formality for the builder to transfer the property from the name of the agreement holder to the actual buyer, which can be done even on the basis of a tripartite agreement.

Since the authorisation letter to be given to your FIL is in the form of a POA, in my opinion it need not be adjudicated and he can proceed on the basis of a notarised deed too. 

Therefore there is no necessity to be worried about the stamp duty in this regard

Yes POA for authority to sell will not have high stamp duty like sale deed. Only execution of sale deed will have high stamp duty plus registration

Dear Client,

The registration fee is payable at the rate of Rs.10/- per Rs. 1000/- with a minimum of Rs. 100/- and a maximum fee of Rs. 30,000/- on the market value of property or consideration, whichever is higher.

If the Principal conferring Power of Attorney is not staying India: At the time of executing Power of Attorney, the Principal signs the Power of Attorney in the presence of the Competent Authority of the country where he is residing which includes Public Notary/ Judicial Court/Judge/ Magistrate/Indian Counsel or Vice Counsel or Representative of Central Government and such Competent Authority gives authentication that the said party has signed before him.

If you are settled abroad and won't be able to visit India in the near future, you may execute a POA from the country of your domicile through the Indian Embassy/ Consulate. There are two ways to execute a POA from abroad:

Legalization: In this case, signatures of the notary or judge before whom the POA is executed are required to be authenticated by the duly accredited representative of the Indian Embassy/Consulate. According to Section 3 of the Diplomatic and Consular Officers (Oaths and Fees) Act, 1948, notarizing a deed from an authorized officer of the Indian Consulate/Embassy would be considered a valid notary. Such a POA is not required to be stamped at the time of execution. However, it needs to be stamped within three months from the date of receipt of the POA in India. Stamp duty would be payable according to Section 2(17) read with Schedule-I of the Indian Stamp Act, 1899, when the deed is presented for registration in India.

Apostallization: The deed of POA executed outside India are proven through an apostallization process which is governed by the Hague Convention, 1961. Also known as super legalization, apostille is a certificate which confirms and verifies the signature/seal of the person who authenticated the document. However, this deed, too, needs to comply with Indian laws such as the Indian Registration Act, 1908, and the Power of Attorney Act, 1882. You also have to pay the stamp duty on this.

Besides, selling properties where the owner has only right over possession and no right over ownership through PoA is illegal. Proper transfer of title and ownership cannot take place, if the sale is done through a POA and not by means of a sale deed.

The POA only can be registered in Karnataka for which the necessary stamp duty and the registrations charges need to be paid.

The stamp duty for non-blood relatives is 5% of property value.

Thank You.

Stamp-duty varies from State to State in India. It is better if the PoA is adjudicated by the same registrar under whose jurisdiction the property falls.