(Querist) 06 July 2012
This query is : Resolved
We 7 family members had given POA to 3 other family members to negotiate with any person/s for sale and transfer of Ancestral property located in State of Karnataka. The POA was given in Dec, 2008. Subsequently in Dec, 2010 one of the POA holders expired. The POA was made on "AND / OR" basis between the 3 POA holders. One of the remaining 2 POA holders has sold the property in Jan, 2012, without knowledge of the the other remaining POA holder and also without knowledge of 7 members who had given the POA.
Following are my queries: 1. Since one of POA holders expired in 2010 will the POA be still valid and can be used for the sale deed made in 2012. 2.One of 7 EXECUTANTS of the POA is also one of the 3 EXECUTORS. Since such is the case, will the POA become null and void. 3. Is it mandatory for POA used for sale of property be registered by paying stamp duty.
(Expert) 19 November 2013
Dear Author When any executant of POA died,it will be automatically power less POA. If the Attorney used this document as a valid documents that means the said attorney suppress the fact and liable for punishment.
yes it was mandatory but now it is not mandatory, for your clarification read care fully following order of SC.
Citing a Supreme Court judgment of 2009, and a High Court order of April 2013, the July 22 circular states: "There is nothing in the existing provisions of law that prevents a registered property owner holding registered and valid deed of transfer like sale deed, gift deed, partition deed, relinquishment deed from executing general power of attorney or special power of attorney in favour of his spouse, son, daughter, brother, sister or any other relative or person of trust to manage his property.
"It is further clarified that registered property owner can empower the person of trust with whom he enters into a general power of attorney to execute any further deed of transfer including conveyance, sale, gift deed on behalf of registered owner."
However, this is comes with a clarification. GPA-based transactions cannot be the basis for a mutation to enable transfer of the title of a property. The circular states: "Immovable property can be legally and lawfully transferred only by a registered deed like sale and conveyance deed. Transaction of general power of attorney or special power of attorney do not convey any title, and thus, are not legally recognized as valid modes of transfer of immovable property as per the existing provisions of law."