Shpk (Home) 25 September 2011

General power of attorney to builder

Hello --

We are entering into a JV agreement with a builder whereby we are transferring some portion of our share to the builder. The builder has sent a General Power of Attorney draft where it states that we are appointing him do the various things with our share but does not mention for the purposes of the joint venture. Is this something to be worried about? Also, the GPA says its irrevocable and he can act on behalf of our interests and concern - I would prefer that it would have some sort of expiration after the JV is completed. Is there a way to ensure that he deals with the share we transfer to him only if the JV goes through and not for any other purpose? Can a special POA be given rather than a GPA?

Please let me know.

Thanks!

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2 Replies

ALPESH (practice) 26 September 2011

same can be dealt only after seeing the draft of poa and every power of attorney can be revoced some by notice and some by suit of cancellation for poa

narendra.s.p (Chief Manager(Law)) 07 October 2011

JV agreement is nothing but exchange deed. It requires registration. To avoid expenditure of and cost of registration, a JV is in vogue coupled with irrevocable PoA. The PoA should authorise the Developer to sell his share of apartments only and execute sale deeds only in respect of his share. Irrevocable PoA is valid provided there is a passing of consideration.