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Ronnie (lecturer)     10 May 2013

Stamp paper purchase

Dear Members,

While purchase of property by POA ,in whose name stamp papers should be bought? In the name of POA or the actual buyer?

Thanks in advance



Learning

 7 Replies

Advocate M.Bhadra   10 May 2013

Stamp Paper should be bought in the name of Principal/donor,who want to execute a POA.The term ‘Power Of Attorney’ is an authority given by an instrument by one person, called as the donor or principal, authorising another person, called donee or agent to act on his behalf. There may be possibility of giving ‘Power Of Attorney’ by two or more persons jointly to one or more persons. Here a legal authority is given by the principal to the agent which may be broad or limited and an agent can take all necessary decisions i.e. financial, property related matters and all other matters where principal cannot be present to sign or in the case of principal’s illness and disability. A paper signed by principal giving powers to an agent is sometimes itself called a power of attorney. A paper giving a power of attorney should be clear and understandable

 

A power of attorney is legal written document which has more legal value and the authenticated attorney will be presumed by the court as legal document under ‘Indian Evidence Act, 1872’. According to the Section: 85 of ‘Indian Evidence Act, 1872’, which provides that the court shall presume that every document purporting to be a power of attorney, and has to be clearly authenticate and executed before the Redistrar, Notary or Magistrate. If there is any issue arises concerning to the genuineness of the attorney then proof of its execution can be called for the verification.

1 Like

LegalArrow ( Advocate Bangalore)     10 May 2013

i think as per recent judgement rendrered by the SUpreme Court, there cannot be any Transfer of Title of Property with respect to GPA sale transactions

Ronnie (lecturer)     10 May 2013

Thanks for the reply Sir


Actually my wife has given POA to me for purchasing a house whereby when i went to purchase the stamp paper for executing the registration deed they said in whose name this stamp paper is to be purchased i.e in my name (POA) or in my wife's name (actual owner). So as per my understanding I should buy stamp paper in my wife's name and pay the stamp duty for the same.

LegalArrow ( Advocate Bangalore)     10 May 2013

i think as per recent judgement rendrered by the SUpreme Court, there cannot be any Transfer of Title of Property with respect to GPA sale transactions

adv. rajeev ( rajoo ) (practicing advocate)     10 May 2013

Stamps will have to be purchased in the name of seller.  For POA buyer has to to purchase in his name and second party name will be holder.

Advocate M.Bhadra   10 May 2013

The Power of Attorney Act is exist and now in force ,there is no statute laws has been changed,one can transfer his/her property by POA,Hon;ble Supteme Court comment for misuse the POA.

The Powers- Of- Attorney Act, 1882
THE POWERS- OF- ATTORNEY ACT, 1882

ACT No. 7 OF 1882 An Act to amend the law relating to Powers- of- Attorney.
[ 24th February, 1882.]
For the purpose of amending the law relating to Powers- of- Attorney; It is hereby enacted as follows:-

INDIA CODE, VOL- IIIA.

1. Short title.- This Act may be called the Powers- of- Attorney Act, 1882 . Local extent. It applies to the whole of India 1[ except the State of Jammu and Kashmir]; Commencement. and it shall come into force on the first day of May, 1882 .
1A. 2[ Definition. In this Act," power- of- attorney" include any instrument empowering a specified person to act for and in the name of the person executing it."
2. Execution under power- of- attorney.- The donee of a power- of- attorney may, if he thinks fit, execute or do any 3[ instrument or thing in and with his own name and signature and his own seal, where sealing is required, by the authority of the donor of the power; and every 3[ instrument and thing so executed and done, shall be as effectual in law as if it had been executed or done by the donee of the power in the name, and with the signature and seal, of the donor thereof. This section applies to powers- of- attorney created by instruments executed either before or after this Act comes into force.

 

supreme court on POA

Property sale through the common practice of issuing a general power of attorney (GPA) will not give ownership of the property title to the buyer. A deal done on the basis of a GPA will give you the possession of the property, but will not ensure that the title deed is in your name. Already, banks do not finance a property bought on the basis of GPA.
 
In a ruling on 12 October, the Supreme Court said that property can be lawfully transferred only through registered sale deeds and not by GPA. A power of attorney is a legal document that is framed according to the ease of the property owner. It grants considerable power to a third party to act on the owner’s behalf to sell a property. It clearly defines the terms and conditions relating to the price of the property and its payment. Sale on the basis of GPA usually happens in metro cities that are fast expanding and where unauthorized settlements are becoming common. For example, Delhi-National Capital Region has several areas where properties are sold on GPA.
 
The apex court has, however, clarified that property sale under genuine transactions through GPA will be considered legal. For example, a person may give a power of attorney to his spouse, son, daughter, brother, sister or a relative to manage his affairs or to execute a deed of conveyance. The court added that a person can enter into a development agreement with a land developer or builder for developing the land either by forming plots or by constructing apartment buildings. In that connection he can execute an agreement of sale and grant a power of attorney that will allow the developer to further sell the property to prospective homebuyers.

LegalArrow ( Advocate Bangalore)     11 May 2013

Grateful for the clarification Bhadra Sir.


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