sale through POA
R_RTM_JAIN
(Querist) 05 May 2010
This query is : Resolved
A has purchased one property but not executed registered sale deed. but Having power of attorney in his favour for said property which is not registered but only notarised in the year 1998.
Now POA holder 'A" wants to sell the said property which is situated in the state of Madhya Pradesh. Can he sell the property and execute a registered sale deed in favour of proposed purchaser on the basis of notarised POA ?
What will be the legal position of the proposed purchaser after execution of registered sale deed ?
A V Vishal
(Expert) 05 May 2010
An unregistered POA for sale of immoveable property is invalid, nonetheless it is notarized.
R.R. KRISHNAA
(Expert) 05 May 2010
Sale through unregistered POA is valid.
Find attached the judgment.
A V Vishal
(Expert) 05 May 2010
Mr Krishna
The judgement cited by you is irrelevant since the registration act was amended.
POA need not be registered. But General Power of Attorney containing authority to present or admit execution of a document executed by the principle is not acceptable for such presentation or admission of execution unless they are attested or authenticated by a Sub Registrar. In many cases, a general or specific power of attorney need not be registered. The question of registration arises only if a power is given for the sale of immovable properties. The Indian Registration Act does not make a power of attorney compulsorily registerable. However, the Supreme court has recently ruled that a power of attorney given to sell immovable properties should be registered. It should be done at the office of the sub registrar within whose jurisdiction the person giving the power resides. If the person resides abroad, the power should be attested by the Indian consulate in that country. Such power of attorney should be used within 3 months from the date of its execution.
the documents requires to be compulsorily registered? 1. Gift deed of immovable property.
2. Other non-testamentary instruments, which purport or Operate to create, declare, assign, limit or extinguish whether in the present or in future, any right, title or interest, whether vested or contingent, of the value of one hundred rupees and upwards, to or in immovable property;
3. Non testamentary instruments which acknowledge the receipt or payment of any consideration on account of the creation, declaration, assignment, limitation or extension of any such right, title or interest;
4. Leases of immovable property from year or for any term exceeding one year, or reserving a yearly rent;
5. Non testamentary instruments transferring or assigning any decree or order of a court or any award when such decree or order or award purports or operates to create, declare, assign, limit or extinguish whether in the present or in future, any right, title or interest, whether vested or contingent, of the value of one hundred rupees and upwards, to or in immovable property;
6. The documents containing contracts to transfer for consideration, any immovable property for the purpose of section 53A of the Transfer of Property Act, 1882 shall be registered if they have been executed on or after the commencement of the Registration and Other Related Laws (Amendment) Act, 2000 and if such documents are not registered on or after such commencement, then, they shall have no effect for the purposes of the said section 53A
Ashok Yadav
(Expert) 06 May 2010
As per my opinion if a POA is given for execution of sale of immovable property, it should be regd. compulsorily, unregistered POA authorising sale of immovable property shall not be entertained by the concerned Sub-Registrar.
