Purchase of plot through Power of attoney made by proprietor
SMIT SAURAV
(Querist) 15 June 2009
This query is : Resolved
Dear Sirs,
I am interested to purchase a plot in Jaipur (Rajasthan). The plot is owned by individual say "A" ( intially alloted by Jaipur Development Authority), wants to sale it to me but by drawing a power of attorney in favour of another individual say "B". In this transaction, the whole of the proceeds will go to "A". My query is :-
1. Is sale of plot / property through power of attorney valid in courts of law?
2. Is registration of the power of attoney drawn in favour of "B" be done beforehand sale transaction and registration of sale deed.What is the general stamp duty for such registration of power of attorney?
3. "A" is willing to be witness in the sale registration to be executed by "B". Inspite of this can future dispute be raised by "A"?
4. What can be the foolproof process where it can be checked that "B" has not done similar transaction of sale through power of attorney to some other individual/s ?
5. In the eyes of Law, the sale of a property which is registered will be considered genuine where another man who also claims right of property ( but which is not registered) of having been sold the same property by keeping the person in dark.
6. Is publishing a general enquiry in the newspaper about any claimant for plot is desired at the time of purchase and legally enough to protect one's interests ?
7. What general precautions should be taken for purchase and registration of purchased plot?
The learned advocates are kindly requested to guide me with their rich knowledge.
Thank You!
sanjeev murthy desai
(Expert) 15 June 2009
Dear Samit Saurav,
1. Is sale of plot / property through power of attorney valid in courts of law?
Yes Offcourse, its legally valid transaction.
2. Is registration of the power of attoney drawn in favour of "B" be done beforehand sale transaction and registration of sale deed.What is the general stamp duty for such registration of power of attorney
Yes offcourse you have to eb execute the POA before the sale transaction. In your case A and B are not the family members then you have to be pay the stamp duty of as per conveyance. Please checked your state stamp act.
3. A" is willing to be witness in the sale registration to be executed by "B". Inspite of this can future dispute be raised by "A
There is no problem.
4.What can be the foolproof process where it can be checked that "B" has not done similar transaction of sale through power of attorney to some other individual/s ?
Please get the encumbrance certificate upto date from the Jurisdictional sub-registrar office. And also issue public notice in news papers (English and local langauge) to intend to purchase that property from A represented by his pOA mr.B.
In the eyes of Law, the sale of a property which is registered will be considered genuine where another man who also claims right of property ( but which is not registered) of having been sold the same property by keeping the person in dark.
Yes you are right, property purchased through the document that should be registered and properly stamped otherwise it cannot be confirmed any title.
What general precautions should be taken for purchase and registration of purchased plot?
Firstly get the legal opnion from the specialised Advocate, before you purchased any property.
Uma parameswaran
(Expert) 16 June 2009
1. Yes .it is valid.
2. There is no special stamp duty if it is registered by power of attorney.
3. According to my knowledge “A” could not become a witness.
4. Take the encumbrance of the property. Publish in news paper.
5. Yes registered document will considered genuine.
6. Publishing a notice shall keep as a legal proof.
7. Check encumbrance last 30 years. Check whether a clearance from Income tax department u/s 230A or 269, latest property tax, water tax, electricity payment receipt, patta, extract from permanent land register, urban land tax receipt. Check whether there is any bank liability over the property or court attachment.
