Registered POA is necessary for sale of property
mete notarised POA is not sufficient
it does not confer clear and marketable title to property
Buying a registered mhada property
Looking to purchase a flat in a MHADA building (CHS) with the following doc chain. 1st owner was allotted the flat by Mhada. 2nd owner purchased the flat in 1999 by executing the following docs: 1) Sale Agreement (Notarized), 2) Irrevocable General POA (Notarized) for this flat on Rs 100 stamp paper, 3) Declaration cum Indemnity Bond (Notarized) on Rs 20 stamp paper, 4) Declaration of No Objection and Consent by 1st owner's family on Rs 20 stamp paper. Registration was not done although Stamp Duty was paid at the time. After the above sale, the CHS transferred the Share certificate to the 2nd owner's name in 1999. Now in 2022 the 2nd owner visited the Registrars office to formalize the flat in his name and do the Registration. The officials created a new sale deed using the above original POA - the sale deed has the seller as 2nd owner by virtue of POA, and the buyer as 2nd owner. Index II also mentions the same. The 2nd owner was made to pay extra Stamp Duty to account for the difference, plus the Registration fees. All the docs including the new Sale Deed, old Sale agreement, POA was registered. Subsequently he went to MHADA and in due course, received the Regularization (Transfer) letter to his name from MHADA. Considering that the Registrars office have registered the flat by accepting a notarized POA, is it now safe for me to purchase such a property?
Asked 3 years ago in Property Law
Religion: Hindu
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11 Answers
No, it's not valid SRO should have called first owner at the time of sale deed registration. Only the sale deed could have registered if the POA where registered.
In this case transfer of ownership does not get transferred after paying the stamp duty and registration charges as well.
The notarised POA is no a proper document authorising the power agent to execute the sale deed because it is mandatory by the virtue of section 17 of the registration act that the transactions pertaining to the immovable property has to be carried out only be registered documents.
It is not known that how the registrar has proceeded with the registration of sale deed on the basis of the unregistered POA deed.
If the sale deed was executed on the basis of the registered sale agreement, then the original owner only has to execute the sale deed and not the buyer himself can get the sale deed executed by himself unto himself.
There appears to be some irregular transactions which are not recognised as legally valid transactions, however without scrutising all the relevant document nor further opinion can be rendered either to guide or discourage the purchase, therefore you may consult a local lawyer and obtain a proper opinion and can revert for second opinion if you are still in doubt
Having registered the flat by on the basis of notarized POA, the Registrar has regularized the POA. The POA is now valid and proper. You can go ahead with deal without any legal hurdle.
Check through RTI if there is any lacunas in the documents or some other requirements in the same
So in this case, considering that the flat is now already registered in 2nd owner's name, how can they fix this problem? Registering a brand new POA with 1st owner and redoing the Registration process?
Asked 3 years ago
Deed of confirmation can be executed by the first owner
it should be duly stamped and registered
Yes, there must be sale deed registration between first owner and second owner than only it will complete transfer of ownership.
the sale deed from 1st owner to 2nd owner is done using the POA granted by 1st owner to 2nd owner
now there is a registered sale deed in favour of 2nd owner
mhada has also transferred the flat in name of 2nd owner in its records
so the title of 2nd owner appears to be clear and marketable in my view subject to physically checking the relevant documents
That's the problem of the current owner to derive the clear and marketable title to the property, but he cannot skip the process of law involved in this.
Yes it's correct
Dear client, I am sorry to hear that but it is not so safe.
