I am from Gujarat and settled in Delhi since last year. Planning to buy house to live with the budget of max 75 lac inclusive all. I prefer to live in town and low rise rather in new developing areas like Noida etc. with high rise apartments. I visited Saket, Chhatarpur enclave and Vasant kunj areas to see some properties. I like most of them but the property has issues with legal documents e.g. construction approval by authorities, PoA etc. I am new to capital and have never purchased property without proper documents. Also this properties are not eligible for loans. Tried to look details online in this regards but all different websites are saying different things. Hence decided to post new question. Sorry for the repeated query but wanted to be sure before i take any decision. Kindly advise is it safe to buy PoA property? what is the future in terms of getting it registered? If not safe, how much risk I am taking? Thanks for your advise, time and efforts in advance. Once i will have preliminary idea, would definitely consult professional/lawyer firm to take care of documentation for me.
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Hi, There is no issue in buying the property which is executed through Power of Attorney but here it will entirely depending upon facts and circumstances.
2. As per law the power of attorney can validly execute the Sale deed, it is better you have to verify the documents from the advocate and proceed further.
The title to a property can be conveyed only through a registered sale deed and not POA. So conduct due diligence to ensure that the title of the property, which you intend to purchase, is free and marketable, and then alone opt for purchasing it. It is basic law that a seller cannot convey a title better than his own title.
1) dont purchase POA properties .Property sales through the common practice of general power of attorney (GPA) will not give ownership title to the buyer.
2) the Supreme Court held that the GPA method of immovable property sales is not a valid form of transfer of property."A power of attorney is not an instrument of transfer in regard to any right, title or interest in an immovable property,"
3) purchase house wherein registered sale deed has been executed in favour of the seller .
Kindly advise is it safe to buy PoA property? what is the future in terms of getting it registered? If not safe, how much risk I am taking?
It is unsafe to buy such properties. Th POA agent may be in possession of this property for decades whereas if he wants to sell it in the capacity of POA the principal is required to ratify the sale deed which the POA will not be ready to do it because the principal or the original owner may not be traceable at this juncture and even if traceable, he may demand a share of money hence the POA will convince you to skip this step and will agree to directly register the property to your name. After the registration is done, there will emerge a legal heir of the deceased principal stating that this POA is invalid owing to the death hence the sale deed is invalid and illegal and ask you to handover the property. The bank also may not grant loan, so better be careful about this.
