mani vel 17 March 2023

Lending on basis of Sale Agreement or POA

Hi Team, One of my friend is willing to lend money to some 3rd person (say Mr.Raja) in Tamilnadu .. Since, he need security for his money , he is planning to get Sale Agreement / POA (power of attorney) over Raja's Agri Land..So we are looking for best suggestion from some experts , which one is LEGALLY best method to safeguard our lending ? is it Sale Agreement or POA or another way ? Also help me to understand whether we need to renew this POA on timely basis .. (In simple, if the borrower cheated lender, then lender need to sell out mortgaged property and recover his amount without any legal trouble) Thanks in Advanve for legal experts for their valuable feedback

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4 Replies

Real Soul.... (LEGAL) 17 March 2023

You can make a mortgage deed and register that, POA can be cancelled by the executor anytime;

If you want to make a sale agreement then make sure the contents are well defined and clear, the amount should be shown as consideration sale amount and the agreement should have duration and validity equal to loan repayment period. That is also good option but register the document in court.

Make revenue receipts and pay loan amount through cheques

P RaviShankar-cell-8939332195 (Advocate ) 17 March 2023

one way is to register a mortgage deed of the agricultural land in your favour in the sub-registrar office after getting a legal opinion of the land document.

Advocate Bhartesh goyal (advocate) 17 March 2023

You may get executed either mortgage deed or sale agreement of property from borrower.

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