I purchased an apartment in 2004 in Chennai from a builder. The individual (XYZ) had a registered power of attorney from the original land owners to develop the land and sell 40% of the UDS. In my sale deed the vendor is mentioned as ABC Company represented by its Director, XYZ vide. document no...(he has mentioned the POA document number). The XYZ POA person only has signed the agreement but the vendor is mentioned as "ABC Company represented by its director XYZ). Its already 21 years and I have been enjoying the property but when I tried to sell the property, one of the prospective buyers pointed this out. After 21 years it is difficult to trace the XYZ person and ask him for rectification deed. My questions are 1) How serious is the title defect? 2) How to rectify it other than "rectification" deed?
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If there is mirage in sale deed deed of rectification has to be executed
if seller is not traceable
1. The defect after so many years has lost its significance and hence can very well be ignored.
2. Unless your sellers are available no such deed of rectification can be made.
1. IF XYZ is a company of builder and the ABC is the director of this company having POA from the landowner , then there is no defect in the title , as being the director ABC having right to enter into the agreement on behalf of the XYZ.
- However, if the XYZ is an individual and not a company then ABC was having no right to enter into agreement for transferring the property in your name.
- If the vendor is not traceable then you can file a petition before the Court for getting the same.
- Further, you have also right to declare the legal owner of the property on the ground of adverse possession .
You need get te court order for the same by filing suit
It appears there's no defect in the title because the power of attorney deed is also executed by a registered deed besides the power agent has been appointed by the company as it's representative hence this appears to be proper.
Title issue is moderate, not fatal, but needs legal clarity.
If rectification deed isn't possible:
Get a property lawyer's title opinion
File a declaration suit in court
Offer an indemnity bond to reassure buyers
This will help secure your sale.
Civil courts are the appropriate forum for contesting the validity of sale deeds based on POA and for rectification of title.
The validity of a POA is governed by the Transfer of Property Act, 1882, and the Indian Registration Act, 1908, which require that certain transactions, including those based on POA, be executed through registered deeds. Assess whether the transaction was properly registered and whether the sale deed was executed and registered in accordance with the Indian Registration Act.
If you bought 40% or less of the undivided land through a POA holder, the transaction is valid.The individual (XYZ) had a registered power of attorney from the original land owners to develop the land and sell 40% of the UDS. The title has no defect, as the power of attorney deed was executed via a registered instrument. The attorney-in-fact was properly appointed by the company as its authorized representative. Therefore, the appointment is valid and proper.
But there was no mention of "company name (builder name)" in the registered POA, only its director name is there. Whereas in the sale deed it says "company name represented by its director, (POA holder name)" is there and payments also made to builder company only.
POA was in XYZ’s personal name, not in ABC Company’s name.
But sale deed says "ABC Company represented by XYZ".
Payment was made to ABC Company, not XYZ.
This creates a title mismatch — wrong seller shown in sale deed.
Moderate defect — not fatal, but serious for resale.
Buyers/lawyers may object due to vendor mismatch.
File a declaratory suit in civil court to confirm valid ownership despite error.
Provide an indemnity bond to buyers to cover future risks.
Sworn affidavit + newspaper notice explaining full facts for transparency.
Get a title opinion from a local property lawyer.
Let me know if you want a draft of the declaration suit, affidavit, or indemnity bond.
POA has been given to director in his individual capacity
he has executed sale deed on behalf of company
The power agent has executed the sale deed by a registered sale deed hence the sale deed is legally valid, it appears that your fears are unnecessary.
If this buyer is creating any problem you can ignore the buyer and look for any other prospective buyer who can understand better.
Declaratatoy suit is required in the above case
Dear Sir/Madam,
The title is not defective and you are the real owner now. The said minor defects are not material and you may proceed with some other buyer.
- The sale deed is correct.