• Power Of Attorney between non-blood relations and beneficiary

Sir, 
I want to sell my property in Thane district, Maharashtra, jointly owned by me (first name in the property documents) and my foster mother (second name). We are located in Karnataka now, and my foster mother is unable to travel due to poor health. 
1) Would obtaining a power of attorney here in Karnataka from her ( principal) to me ( agent) allow me to carry out the sale of property? 
2) Would I be considered beneficiary, and so would any special restrictions apply? 
3) Do I need to get the PoA registered? or is just notarizing it is sufficient? 
4) As I' am not a blood relative, do I need to pay the registration& stamp duty on the property value (instead of the PoA) here in Karnataka Registrar's office and claim it back from the Sale Registration office at Thane? Its unclear to me. 
5) On the other hand, what if she does a PoA for any one else(say my wife/sister/father) who's not a beneficiary?  Would that simplify anything for me?
Kindly advice what would be best to do.
Thanks!
Asked 10 months ago in Property Law from Bangalore, Karnataka
Religion: Other
Hi
1. yes a registered Power of attorney is needed to the execution of sale here in Thane, Maharashtra.

2. being beneficiary  you are not getting anything better as you will have to pay stamp duty for the registration.of Power of attorney as you are not a blood relative.
3. The POA has to be registered for sale in Maharashtra when it  comes to the purpose of sale and purchase or transfer of property.
4. In here Thane, we have to pay stamp duty and registration as same as of sale/conveyance .and one percentage registration charges and maximum is 30,000/.
5. The change of attorney , any one else(say my wife/sister/father) who's not a beneficiary will not make any difference in stamp duty.
Thresiamma G. Mathew
Advocate, Mumbai
1316 Answers
85 Consultations
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1) you would needPOA executed by your foster mother in favour of any relative   and duly registeted in Karnataka for sale  of property 

2) mere notarisation is not sufficient . Registration is mandatory in Maharashtra 

3) POA for sale  of property attracts Rs 500 stamp duty in Maharashtra 
Ajay Sethi
Advocate, Mumbai
23119 Answers
1214 Consultations
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Hello,
1)Yes the POA executed in Karnataka where she is will enable  you to sell the property on her behalf. The POA has to be registered.

2) There is no restrictions pertaining to the beneficiary in your case.A POA can be in any person's name. As she is your foster mother you will be required to pay a stamp duty and registration charge.

3) Just notarization of the POA is not sufficient for sale of the property. It has to be registered.

4) As you are not a blood relative you have to pay  stamp duty to the tune of the market value of the property for the registration of the POA, however you can not reclaim the same in Thane.

5) There will be absolutely no difference if she gives POA to some one else as well as the same will fall in the category of no blood relative.
S J Mathew
Advocate, Mumbai
1949 Answers
65 Consultations
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If you both are the joint owners of the property that is situated in Thane District, then in that case both of you must be present at the time of sale of the immovable property. As stated by you your foster mother is unable to travel to Thane District and therefore you wish to get a POA in your favour (if it is feasible) or in any other blood relative name who can travel on her behalf to complete the sale transaction on her behalf.
the GPA must be registered if it involves sale of immovable property anywhere in India.
In Karnataka, a GPA given in favour of any third party (not blood relation) attracts same stamp duty and registration fee as that of Conveyance.
Kiran N. Murthy
Advocate, Bangalore
765 Answers
50 Consultations
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1. She is free to execute a GPA in your favour to authorize you to sell her share in the property. The GPA would have to be registered, which can be done where she resides.

2. You will not be a beneficiary of the sale of her share unless the sale proceeds of her share will be pocketed by you.

3. The stamp duty and registration charges will have to be paid as you are not blood relatives.

4. She can execute GPA in favour of anyone she desires. 
Ashish Davessar
Advocate, Jaipur
18057 Answers
445 Consultations
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Hello,
1) The value of the property has to assessed on basis of the current market rate and the the nature of the property in terms of documents available to arrive at the exact calculation of the stamp duty to be paid.  The stamp duty would be 5% of the value of the property and the registration charges would be a maximum of Rs.30,000/-

2) For the purpose of sale again the same calculation applies to the property when it comes to Thane, Maharashtra.

3) Yes, conveyance in common parlance means  transfer of ownership or interest in real property from one person to another by a document, such as a deed of sale, lease, or mortgage.

4) Considering the expenses that you would incur effecting a sale through a POA in this manner it would be far  cheaper to book a flight ticket for your foster mother if she can travel by plain to be present for the Registration when all is set for the sale.
S J Mathew
Advocate, Mumbai
1949 Answers
65 Consultations
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1) stamp duty on sale  deed would be 5 per cent as per ready reckoner rates of the flat in thane 

2) Registration fee is 1% (one percent) on Market Value or on the Agreement Value or  30000/- which ever less.
Ajay Sethi
Advocate, Mumbai
23119 Answers
1214 Consultations
5.0 on 5.0
Hi, as the General Power of attorney is executed outside the family members and in the General Power of Attorney there is a sale clause then you have to pay the stamp duty as per current market value. i.e 5.5% Stamp Duty and 1% registration charges on the market value of the property.
Pradeep Bharathipura
Advocate, Bangalore
4104 Answers
133 Consultations
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The stamp duty and registration cost can be told only by a  local lawyer as this is not uniform through the country. To convey means to transfer the title. 
Ashish Davessar
Advocate, Jaipur
18057 Answers
445 Consultations
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POA requires registration in certain case in which right over the property is being transferred through POA. If principal wants to authorise a person for performance of certain work in property its notary is sufficient. you are authorised by poa to sell it on behalf of principal so its registration is not necessary. 

If you want to buy it or use sell amount for own benefits then you have to pay registration fee and stamp duty because title of the property cannot be transferred merely by POA. 
Shivendra Pratap Singh
Advocate, Lucknow
2729 Answers
41 Consultations
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1) Would obtaining a power of attorney here in Karnataka from her ( principal) to me ( agent) allow me to carry out the sale of property? 
Yes, she can execute a power of attorney and register the same in Bangalore (Karnataka) which is very much valid, you can sell the property on her behalf too. 



2) Would I be considered beneficiary, and so would any special restrictions apply? 
No.  Even if you are considered as a beneficiary there is nothing wrong in it because your principal has empowered you to sell it anyone, which includes you by yourself and this transaction would be held valid.




3) Do I need to get the PoA registered? or is just notarizing it is sufficient? 
For transactions involving immovable properties, the POA deed need to be registered.




4) As I' am not a blood relative, do I need to pay the registration& stamp duty on the property value (instead of the PoA) here in Karnataka Registrar's office and claim it back from the Sale Registration office at Thane? Its unclear to me. 
You cannot sell the property by executing a registered sale deed in Karnataka for a property situated in Maharashtra.  The POA only can be registered in Karnataka for which the necessary stamp duty and the registrations charges need to be paid.  For a sale or transfer within the blood  relations no need to pay stamp duty in Maharashtra, but there is no provision to reimburse the same from one state to another. 





5) On the other hand, what if she does a PoA for any one else(say my wife/sister/father) who's not a beneficiary?  Would that simplify anything for me?
First of all understand the meaning and concept of POA.  By executing POA, the agent will not become a beneficiary, he is empowered to sell or undertake any transaction in respect of that particular property by the principal.  So now you read you question once again and get clarified.




T Kalaiselvan
Advocate, Vellore
13934 Answers
127 Consultations
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In the above case, for a property sale consideration of Rs 14 lacs, the property being 15 years old, what are the amounts to be paid for registration/stamp-duty for a) PoA  in Bangalore 
As per the provisions of THE KARNATAKA STAMP ACT, 1957, section 41. Powers of  attorney,—(as defined by section 2(1)(P) not being a proxy,—
(a) when executed for the sole purpose of procuring the registration of one or more  documents in relation to a single transaction or for admitting execution of one or more  such documents is Rupees One hundred only)


and b) subsequent sale deed registration in Thane(with me having the PoA and the buyer).
Stamp Duty is charged on Market Value or on the Agreement Value which ever is higher. Stamp Duty in Maharashtra differs according to the jurisdiction in which it falls.
In Municipal Council stamp duty is 4% on Market Value or on the Agreement Value which ever is higher. (Area Under MMRDA, Municipal Corporation and Adjoining Cantonment and Influence Zone). 
In Municipal Corporation stamp duty is 5% on Market Value or on the Agreement Value which ever is higher. (Municipal Corporation and Adjoining Cantonment Area).

Registration fee is 1% (one percent) on Market Value or on the Agreement Value or  30000/- which ever less.
The Urban Development Department issued a notification on 13th, March, 2013 directing the department of registration and stamps to recover 1% (LBT) Local Body Tax additional to stamp duty to the civic bodies of Nagpur, Pune, Thane, Pimpri Chinchwad and Navi Mumbai on such documents like Sale Deed, Mortgage Deed etc. 
Tax Deducted at Source (TDS) it charged on part of total value not cost. 
Value of immovable property is above  50 Lac the seller has to pay TDS on it (Seller having Income Tax Pan Card) is 1% (one percentage). 
Maharashtra Value Added Tax (MVAT) is 1 % and which is applicable for the property which are under construction stage. .
The Service tax is applicable when purchaser purchases immovable property which is in process (under construction) and it’s charged on the construction cost only. 
One can claim Tax benefit on the amount paid towards stamp duty and registration fees paid on the property. 
One should know about conditions for claming deduction under various section i.e. u/s 24, u/s 80EE and u/s 80C of Income Tax Act.




 Apologies, it is still unclear to me what is meant by conveyance in "same stamp duty and registration fee for Conveyance". Does conveyance in common parlance same as sale of property in this case?  
Conveyance is nothing but transfer on sale or any other mode. 
T Kalaiselvan
Advocate, Vellore
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127 Consultations
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