• Special Power of Attorney from the Seller to the Buyers...

Reference: Property is located in Thane District, Navi Mumbai

Buyers' Attorney (along with Sales Conveyance Deed), drafted seperate Special Power of Attorney (POA) for his clients (Buyers) to get POA from the Seller, so they can use it for remaining procedures of completing Transfer after the closing (ie after Stamp Duty Registration), while appearing in from of the Society Committee and other Authorities like NMMC, CIDCO, SUB Registar, MSEB etc. 

The Seller is very hesitant to give the POA to the Buyers (just because they are on the opposite side).

Should the Seller give POA to the Buyers? Should there be any particular restraints on POA to protect the Seller, if the Seller agrees to give POA?
Asked 1 day ago in Property Law
Religion: Hindu

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7 Answers

Subjective specific POA can be given to seller only after full consideration is paid by buyer to complete formalities as stated above

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

If full sale consideration has been received by seller and sale deed is registered no harm in giving POA to buyer 

 

it is necessary to peruse clauses in POA to advise as to whether POA protects your interests 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

After completion of sale seller neither can give nor is it need to execute a POA to buyer.

Before sale the seller can do these works for which POA is proposed to be executed.

if it is not done by seller then after sale the buyer can do these on his own. No difficulty. 

Devajyoti Barman
Advocate, Kolkata
23653 Answers
537 Consultations

In a sale transaction, there is no legal obligation on the seller to grant a Power of Attorney to the buyer. Once the sale deed is executed and registered, title passes to the buyer, and the seller’s role normally comes to an end. Therefore, the seller’s hesitation is legally justified, especially when the POA is sought in favour of the opposite party.

That said, in practical terms—particularly in Thane / Navi Mumbai transactions involving societies, CIDCO, NMMC, MSEB, Sub-Registrar endorsements, and mutation formalities—buyers sometimes request a POA to complete post-registration formalities smoothly. If the seller is comfortable cooperating, the POA must be strictly limited to avoid future misuse.

If the seller agrees to grant a POA, the following safeguards are essential:

• The POA must be a Special / Limited POA, not a General POA.
• It must be restricted only to post-sale procedural acts, such as:
– Appearing before the society, NMMC, CIDCO, MSEB, and other authorities
– Submitting applications for mutation, transfer of shares, meter name change, etc.
• It must expressly prohibit:
– Sale, resale, mortgage, lease, or creation of any third-party rights
– Signing or registering any conveyance, agreement, or deed
– Representing the seller in any litigation or dispute
• The POA should clearly state that:
– The sale deed is already executed and registered, and
– No ownership or authority survives with the seller except for limited procedural assistance
• The POA should be time-bound (for example, valid for 3–6 months only).
• It should be revocable and automatically stand cancelled once the stated purpose is completed.
• Preferably, the POA should be executed after registration of the sale deed, not before.

Alternatively, and more safely, the seller may refuse to give a POA and instead agree to:

• Personally attend society or authority offices on mutually convenient dates, or
• Sign specific application forms or declarations required by the society or authorities, or
• Issue a letter of authority addressed to the society or authority, instead of a registered POA.

From a risk perspective, granting a POA to the buyer is not standard practice and should never be open-ended. If cooperation is desired, it must be done through narrowly drafted, purpose-specific authority with clear prohibitions and an expiry.

In summary:
The seller is well within his rights to refuse the POA. If he chooses to grant one for convenience, it must be limited, time-bound, revocable, and strictly procedural, ensuring that no legal or financial exposure remains after the sale.

Yuganshu Sharma
Advocate, Delhi
961 Answers
2 Consultations

Yes, grant the POA. It's standard practice and legally safe.

Essential protections:

  • Limit scope to post-closing authority procedures only (society, NMMC, CIDCO, MSEB, sub-registrar)

  • Set expiry: 6-12 months from sale deed registration

  • Auto-terminate upon completion of procedures

  • Exclude: receiving funds, mortgaging, further transfers, sub-delegation

  • Register with Sub-Registrar on stamp paper

  • Retain revocation rights

Key safeguard: POA doesn't transfer ownership—only registered Sale Deed does.

Bottom line: Use a properly drafted Special POA with these clauses. It protects seller while enabling buyer to complete necessary procedures.

Shubham Goyal
Advocate, Delhi
2070 Answers
14 Consultations

The seller need not give POA to the buyer, no law mandates that. 

After the property is sold by a registered sale deed, it completes the transfer and any post sale compliance will be  the buyer's responsibility. 

There is no necessity for the seller to execute a POA  in favor of the buyer for the purposes stated in your query except that it would be convenient for the seller to avoid visiting the concerned authorities namely Society committee or NMMC or CIDCO or MSEB or Sub registrar for obtaining certified copies, instead the buyer can carry out the tasks before the above said various authorities on behalf of the seller on the basis of the so called POA  

But the risk in giving such POA  is that the alteration can be done without the consent of the seller or signing the affidavits or indemnities on behalf of the seller or possible misrepresentation before any authority/s and there is risk of future litigation..

Therefore instead of a POA  you can sign a one time declaration/affidavit authorising the buyer to submit the already executed sale deed  that no authority to sign anything on behalf of the seller.

If you do not want to face any risk then you can refuse to sign a POA , if the buyer still  insists on the POA then you can execute a time bound limited purpose POA with strict prohibitions.

Don't entertain the buyer drafted POA  without scrutinising it  and do not attach the same as annexure to the sale deed and make sure that the POA deed is for a limited period only and it will automatically expire or gets revoked beyond a stipulated time line. . 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

- Once sale deed is executed in favor of the buyer , then the seller is not bound to give any agreement or POA to the purchaser, as the sale deed already having clauses in favor of the buyer

- Hence, the buyer can deny to give the POA . 

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

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