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Palash Jawa (Adv.)     01 February 2015

Please help someone ugently

can a general power of attorney holder for another person, can sell the property to himself.

Is there any relevant case law related to this & is this transfer legal if the donor is not objecting.



Learning

 4 Replies

Dr J C Vashista (Advocate)     01 February 2015

The covenants of the document shall decided, whether the attorney has been authorised to sell or not. Show the document to a local lawyer and seek his/her advise.

Palash Jawa (Adv.)     01 February 2015

sir,

it is a general POA & the covenants have the clause . still is it legal & is this transfer legal.

Kishor Mehta (CEO)     01 February 2015

Sir,

[1] The terms, conditions and covenants of POA shall decide whether the POA holder has been awarded right to sale, whether POA holder has been expressly awarded the right to sale to himself? Whether the POA has been registered?

[2] When the owner raises a doubt about the bonafides of sale to self, such sale by POA holder has the chances of being proved infructuous.

[3] Better consult a local advocate.

Good Luck,

Kishor Mehta

T. Kalaiselvan, Advocate (Advocate)     02 February 2015

If a POA agent has been specifically authorised by his principal to do the act of selling the property on his behalf, no doubt the POA holder can very well go ahead with the execution of sale deed to the prospective purchaser on behalf of the principal. There is restriction to sell the property to any specific buyer alone and there are no such restrictions neither it is approved by law until and unless specifically stated so. Therefore, if a POA holder is selling the property by following the legal procedures properly and executes a sale deed to himself and signs in both the places i.e., as a vendor and vendee, there is no legal infirmity in it. The same is legally valid. After the sale is for some consideration, so what it matters when the sale consideration has been paid by the agent himself as a buyer to the agent (himself) on behalf of his principal.

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