Buying a Property from Power of Attorney Holder

When it comes to purchasing a property, it is crucial to ensure that all legal requirements are met to protect your interests. In certain situations, you might need to buy a property from a power of attorney holder. In this article, we will explore the safety and legality of such transactions and the compliance measures that should be followed by the parties involved in the sale and power of attorney.

When preparing a Sale Document, make sure that Owners name should reflect first, and then on behalf of the owner Power of Attorneys name should be mentioned. Also, you must transfer the consideration money directly to the owner’s account and not to PoA Holders account.

The most important thing while buying a property is to check the title. Once you confirm that the seller has all the rights to sell the property, check the following things related to the Power of Attorney.

Important Points

Execution of Power of Attorney

The execution of a power of attorney refers to the process of creating and signing the document that grants authority to another person, known as the power of attorney holder or agent, to act on behalf of the principal. The principal is the person granting the power of attorney and is typically the owner of the property or the individual who wants someone else to manage their affairs.

The principal and agent must sign the power of attorney document in the presence of witnesses/identifiers, depending on the legal requirements of the jurisdiction. The witnesses/identifiers are individuals who can attest to the principal’s identity and the voluntary nature of granting the power of attorney.

The witnesses or identifiers observe the principal’s signature and provide their own signatures and identifying information to confirm their presence. This step helps ensure the authenticity and validity of the power of attorney document.

In certain situations, it may not be possible for the agent or power of attorney holder to be physically present during the execution of the power of attorney document. In such cases, the principal, who is granting the power of attorney, can execute the document on their own, in the presence of two witnesses, and subsequently get it attested or registered as required by the relevant laws and regulations.

Parties should sign at the bottom of all the pages and on the last page beside the signature, parties must put their thumb impression and attach photographs and self-attested photocopies of ID & Address Proofs too.

Attestation & Registration

In cases where the property owner is not present in India, it is necessary to visit the Indian consulate and get the Power of Attorney attested. This attestation serves as proof of the document’s authenticity. However, if the owner of the property is in India but outside the jurisdiction of the property’s location, it becomes mandatory to register the Power of Attorney at the sub-registration office. Registration further enhances the validity and enforceability of the document.

Stamp Duty Payment

To make the Power of Attorney legally binding, it is essential to pay the appropriate stamp duty. The stamp duty varies from state to state in India. Failure to pay the required stamp duty may render the PoA invalid, so it is crucial to comply with the stamp duty regulations.

Execution, Admission, and Presentation Rights

A power of attorney holder typically possesses the authority to execute various tasks on behalf of the property owner. These tasks may include signing documents, presenting signed (signed by himself) documents in the sub-registration office, and admitting execution to the sub-registrar. It is important to clearly define the extent of these rights in the Power of Attorney document to avoid any disputes or misunderstandings in the future.

Only Right to Present the Sale Document

In some power of attorney, owner of the property only assigns right to present the sale document signed by him in the presence of the agent. In this situation make sure that the owner of the property has signed the sale document in the presence of the agent. In this situation the agent presents such sale document to sub-registrar and admits the execution by the property owner.

Declaration by Power of Attorney Holder

In addition to the compliance measures mentioned earlier, while sale document registration process the Power of Attorney holder must submit a Declaration in writing. This Declaration serves as confirmation that the PoA holder has adequate power and authority granted by the property owner to carry out the specified actions. The Declaration also affirms that the property owner is alive at the time of the transaction and he has not canceled the Power of Attorney. This step adds an extra layer of assurance for the buyer, ensuring that the PoA holder has the legal authority to act on behalf of the property owner.

When Might You Need a Power of Attorney?

In several situations, a POA can be your saving grace:

Physical absence: If you’re unable to be present in due to travel, work commitments, or other obligations, a POA ensures your property purchase continues uninterrupted.
Co-owner limitations: If one of the co-owners is unavailable to complete the transaction, a POA can delegate their responsibilities to another individual, ensuring smooth progress.
Medical concerns: Unexpected illness or health issues can impede your direct involvement. A POA ensures your interests are protected and the purchase progresses smoothly.
Time constraints: A busy schedule might not allow you to dedicate adequate time to navigate the legalities. A POA empowers someone you trust to handle the process on your behalf.

What Types of Power Can be Granted?

A POA is a flexible tool that allows you to grant various degrees of authority. Depending on your needs, you can empower your attorney-in-fact to:

Negotiate with the seller: Let your representative negotiate the best possible terms for your property purchase.
Handle financial transactions: Authorize your attorney-in-fact to make payments on your behalf, including the purchase price, stamp duty, and registration fees.
Represent you in banking processes: If seeking a loan, your representative can handle formalities and paperwork at the bank.
Sign legal documents: Grant your attorney-in-fact the authority to sign the sale agreement and other necessary documents.
Represent you in the sub-registration office: Empower your attorney-in-fact to complete the registration process at the Sub-Registrar’s office on your behalf. This includes signing and submitting necessary documents, paying fees, and obtaining registered documents.
Manage property affairs: Delegate tasks like managing tenants, collecting rent, and overseeing repairs.
Represent you in legal matters: If required, your attorney-in-fact can represent you in court or other legal proceedings.

Legal Requirements and Considerations:

POAs for property transactions require registration with the Sub-Registrar’s office.

If you are not present for Power of Attorney registration in Maharashtra then you can register that PoA anywhere in India.

In case you are not in India then you will need to get the PoA attested at the Indian Consulate.

Carefully consider the type of POA you need (General or Special) and choose a trustworthy individual to act as your attorney-in-fact.

Benefits of Using a Power of Attorney:

Peace of mind: Knowing someone reliable is handling legal and financial aspects ensures peace of mind, even when you’re away.
Continuity: The purchase process continues seamlessly, even if you’re unable to be present physically.
Convenience: Delegate tasks and free your time for other priorities.
Flexibility: Tailor the POA to your specific needs and grant specific powers.

Seeking Expert Guidance:

Navigating the legal complexities of buying a property with a POA requires expert advice. Consult a property legal consultant who can guide you through the process, draft the POA document, and ensure compliance with legal requirements.

Unlocking Your Dream Home with Confidence:

By understanding the concept and legal aspects of a POA, you can confidently navigate property purchases in Maharashtra, even when faced with unforeseen circumstances. With a reliable attorney-in-fact and expert legal guidance, you can secure your dream home with ease and peace of mind.

Contact us today, and let us assist you in navigating your property purchase with a POA. Our team of experienced legal consultants will provide the knowledge and support you need to achieve a successful and stress-free transaction.

Conclusion

Buying a property from a power of attorney holder can be a safe and legal process when all necessary compliance measures are followed. These include proper execution, attestation or registration, payment of stamp duty, clarity regarding the powers granted, and the submission of a Declaration form by the Power of Attorney holder. It is crucial to consult with legal professionals and seek guidance to ensure a smooth and secure purchase process. By adhering to these guidelines, buyers can proceed confidently with their property acquisition from a power of attorney holder, safeguarding their interests in the transaction.