• Land purchase via power of attorney, inhertance impact

Principal inherited the land from his grandfather in 2000. Principal made power of attorney agreement and registered in 2003. Seller of the land has full power of attorney. The POA is selling the plot to me in below steps:

1) POA sells to X(third party), as part of the registration the principal medical certificate, signature along with principal photograph is attached.

2) Party X owns the land now. X sells the land to POA wife let's name Y.( The land comes back the POA family now). Registration completed

3) In both the transactions above(POA to X, X to Y), there was a mistake made in the sale deeds, incorrect patta/khata number(issued by revenue department) was mentioned.

4) Party X , POA completes the rectification deed by doing the correction in patta/khata only in the 2nd transaction (X to Y( POA Wife)) and did not correct the 1st registration(POA to X)

5) Now Revenue department accepted the rectification made in the 2nd transaction and issued a khata/patta.

6) Y is selling the land to me now.

Question 1: Now the principal sent to legal notice to POA, sub register, party X, VAO stating that POA cheated principal by misusing power by registering the property to POA wife and not paying the principal of the sale money.

If this case taken up by court, and if the court rules in principal favor and orders the POA to do the settlement by certain timeline. If POA fails to settle, there is a possibility to attach the property belongs to POA's family members. If such situations develops in future due to court order, will my property which i purchased from Y( POA wife), will get impacted? Or it is isolated as my ownership is different and court will attach other properties, bank accounts etc., which belongs to POA family at that time of court order

Question 2: As the original principal inherited the property in 2000, and in 2003 he gave POA. At this time, principal's two kids are minors. Now Principal stating that my kids also have rights to the property and triggering their kids to send legal notice to stating that, they have the share in the property and POA misused the power and cheated their father. Does Principal kids have legal rights to property although their father gave POA while they are minors and many registrations are done after that. Can I still go ahead and buy the land ?.
Asked 2 years ago in Property Law
Religion: Hindu

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8 Answers

1)it may get impacted as you may be made party to suit . principal would seek injunction restraining sale of property by you 

 

2)dont purchase the property . minors on attaining majority ought to have filed suit within period of 3 years of attaining majority to set aside sale deed 

Ajay Sethi
Advocate, Mumbai
99786 Answers
8145 Consultations

If the original Principal has recognised the sale deed executed by his POA, then it can be deemed that he has no dispute over the sale except that he disputes about non receipt of the sale consideration amount from POA.

Therefore the POA alone can be held liable for giving the sale consideration amount to the Principal, the subsequent purchasers are not liable neither the court will pass any order cancelling the sale or attaching the property already sold in return of valid sale consideration amount.

2. They are creating stories now at this stage only to put pressure on the subsequent buyers may be for the reasons of the power of attorney agent or with some fraudulent intention to grab the property or extort money.

It was a property transferred to the principal by his grandfather directly bypassing his father/mother.

If the transfer made on the Principal's name by a registered deed, then that becomes his own and self acquired proeprty, to which his children do not have any rights.

you can challenge the same as per law if you are impleaded as party to the case.

T Kalaiselvan
Advocate, Vellore
89988 Answers
2493 Consultations

once partition is done it ceases to be ancestral property 

 

2) kids have no share in property 

 

3) claim of kids is barred by limitation 

Ajay Sethi
Advocate, Mumbai
99786 Answers
8145 Consultations

1.If the POA is invalidly authenticated by Sub-Registrar, the principal has to take permission from Inspector General of Registration under Section 83 to file criminal  complaint against Sub-Registrar and Attorney, only than his complaint will be valid. Issuing a notice to Sub-Registrar is not the procedure. 2.Power to the attorney to sale the property to his wife is questioned by the principal, sale of property by wife to you will certainly will be under cloud. 3.Minor legal heirs do have rights in ancestral property sold during their minority. They can challenge such transfer after attaining majority. 4.Risk is involved in purchase of such property.  Claim to property by minors is not out of limitation but there are other defects in the property.

Ravi Shinde
Advocate, Hyderabad
5133 Answers
42 Consultations

1. It becomes self acquired property of the principal. 

The next generation children of the principal have no rights over the property. 

2. Prima facie they don't have any rights in the. 

T Kalaiselvan
Advocate, Vellore
89988 Answers
2493 Consultations

Yes you can seek any remedy of attachment appointment of court commissioner etc in the said matter 

Prashant Nayak
Advocate, Mumbai
34522 Answers
249 Consultations

What is this

Ravi Panwar
Advocate, New Delhi
116 Answers

Dear client,  

Answer 1: If the court orders to attach the property belonging to POA's family members, then your property may also get affected as it was purchased from POA's wife. However, this will depend on the nature and extent of the attachment order passed by the court. If the court only attaches certain specific properties or bank accounts belonging to POA's family members, then your property may not get affected. However, if the court orders a blanket attachment of all properties belonging to POA's family members, then your property may also get attached.

Answer 2: The kids of the principal may have a right to the property if it was inherited by the principal as a coparcener property, and not as a self-acquired property. If it was inherited as a coparcener property, then the kids will have a share in the property by birth, irrespective of the fact that their father gave POA while they were minors. However, if it was inherited as a self-acquired property, then the kids will not have any right in the property, unless it was gifted or bequeathed to them by their father.

Regarding your second question, the time limit to file a suit for partition is 12 years from the date of knowledge of the cause of action. So, if the kids have recently come to know about the sale of the property by POA, they can still file a suit for partition. However, if the sale was done more than 12 years ago, then the kids will not be able to claim any rights over the property.

 

 

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

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