Property tranfer
Dineshkumar Gupta
(Querist) 15 February 2010
This query is : Resolved
what is power of attony? It can be used for tranfering the property?
Adv Archana Deshmukh
(Expert) 15 February 2010
The one who executes a Power of attorney in favour of a person, gives him the power to do all the acts mentioned in the POA on his behalf. And those acts are binding on the principal. Yes POA can be used to transfer property on behalf of the principal.
Guest
(Expert) 15 February 2010
Power of Attorney------ legal document that grants an individual the rights to act on behalf of another.
OR
A legal document that gives another person, the attorney-in-fact, legal authority to act on the principal's behalf. This authority ceases upon the death of either the principal or the attorney-in-fact. However, a durable power of attorney remains valid through the principal's disability.
OR
A power of attorney is a written instrument which authorizes one person to act as another's agent or attorney. The power of attorney may be for a definite, specific act, or it may be general in nature. The terms of the written power of attorney may specify when it will expire. ...
YES , it can be used is transfer of property.
A V Vishal
(Expert) 15 February 2010
A power of attorney (POA) or letter of attorney in common law systems or mandate in civil law systems is an authorization to act on someone else's behalf in a legal or business matter. The person authorizing the other to act is the principal, granter or donor (of the power), and the one authorized to act is the agent, the attorney-in-fact or in many Common Law jurisdictions, simply the attorney.
A PoA functions on the principle of an agency where the PoA holder, that is, the person to whom the power is given, is authorized to perform certain acts on behalf of the PoA grantor, and such authorized acts by the PoA holder will have the same effect as if done by the PoA grantor himself. Consequently, the PoA grantor is bound by the acts of the PoA holder in relation to transactions with a third party. PoAs are widely used both by corporate entities and individuals for various purpose such as applying for consents and approvals and dealing with governmental authorities in relation to these, getting property registered, incorporation of a company, execution and registration of documents and so on.
Broadly, PoAs can be classified into general PoAs (where the powers conferred on the PoA holder are wide, the PoA holder is generally authorized to act in relation to various transactions) and specific PoAs (where the powers conferred have been limited to a specific act in relation to a transaction). A PoA may be singular or joint. The latter authorizes two persons to act jointly at all times in relation to a transaction.
It is important to note that for being a legally valid document, each PoA is required to be compulsorily executed on appropriate value stamp paper and should also be notarized/authenticated. A related question that often arises is whether a PoA is required to be registered or not. The answer to this lies in the terms of the PoA. For example, if a PoA merely authorizes the PoA holder to sell the immovable property on behalf of the PoA grantor and does not result in creating, declaring, assigning, limiting or extinguishing any right, title or interest in favour of the PoA holder in the property, then the PoA would not be required to be compulsorily registered.
However, if the intention of the parties is to transfer/convey property under the guise of a PoA, then the document is not only required to be stamped at a higher rate, as a conveyance deed, but also requires registration.
