Sometimes the owner of immovable property is incapacitated or in a vegetative state or away in a foreign land. In such a situation the transactions can be done by an attorney holder who is authorized by the principal by dint of a power of attorney, and if it is registered, it has the legal support also.
Special Power Of Attorney
Sale and purchase of property is a cumbersome procedure which involves several steps and activities. There is work of updating the property documents, finding a suitable buyer, making an agreement for sale, sale deed execution and registration. It takes time also. If the executioner of the property is away or is unwell, there has to be a person who is to be legally authorized by the principal to do the acts on behalf and he is spared the act of attending and carrying out the process.
The detail included in the Power of attorney deed
The POA mentions the date, place, names, ages and addresses of the persons, the principal and the attorney holder. The agreement will spell out the authorization provided by the principal to the attorney to executive some pieces of work on his behalf.
Types of Power Of Attorney
There are two types of power of attorney, a general power of attorney and special power of attorney. The general power of attorney is an authorization document that gives all power to the attorney in all matters of the property of the owner. A special power of attorney is a document that has special clauses and the authorization also is limited. The life of a power of attorney could be till the indefinite time or it may be limited or it may be terminated or vacated by the principal.
A legally valid power of attorney
No person who is below the age of 18 years can be made the attorney or he or she cannot be authorized to act on behalf of the principal. The document must be signed by both the persons and it must be executed on stamp paper with fees paid. The stamp duty value depends on the state of India because it varies from state to state. Both parties must understand their rights and obligations. They should act accordingly.
Special power of attorney
How to Make It Legally Valid?
A special power of attorney for sale of a property can be drafted on a paper and should be compulsorily registered under the Indian Registration Act, 1908. The stamp duty of proper value shall be submitted in a prescribed format and it will be embossed. It will be executed before the sub-registrar. If the power of attorney is made in a foreign country the consulates of the country should be informed and an affidavit may be required.
A special power of attorney for sale of a property is a document that helps a person to sell a property on behalf of another person who is the principal. The document is drafted with care and with due legal formalities. The document of deed also mentions the amount received as consideration money from the sales proceeds.
The power of attorney mentions a brief acknowledgement of ownership and description of the property. There is also a description of the intention to sale the property. The reason for authorizing another person to act on behalf of the Principal and make a power of attorney should be mentioned in the document. The reasons are so many. The owner may be lying in a vegetative state, not in stable health, away from the country, and a host of other reasons. These reasons will be mentioned so that the sub-registrar can see and verify the same.
The most important part of the POA is the clause that mentions the appointment is validated and it is lawful.
The attorney can carry out all or any of the following tasks:
- Execute the Sale deed and Negotiate Price.
- Declare the value of the property before the sub-registrar before registration.
- Receive the consideration amount from the purchaser and provide a receipt of payment to him.
- Hand over the property in a vacated and non-encumbered state to the purchaser.
- Ensure possession of the property by the purchaser after the completion of the sale process.
- Appear before the Sub-Registrar as and when required.
- Appear in the Court of Law in case of a legal dispute regarding the said property.
Also read : Property Law and Regulations Overview