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VV1 (a)     02 November 2012

Property sale by poa

Hello Experts,

   I have a registered plot  and intend to sell it. A builder approached me for buying the land for the puspose of construction of flats and selling. He is insisting only on a POA and not registering the land in his name. He says i need to sign a receipt for the payment made.

Is there any  legal/tax issues in selling the land for construction only by a Power of attorney and not by registration.

Thanks for the help.



 4 Replies

kumar (NIL)     02 November 2012

I have one question here, is that POA is getting registered or not ! It's your land you can sell it to any one, but only through registration. If builder is insisting to do other documents, then alternatively you can for Development Agreement (Registered) with Builder. And the agreement should consist of your share in numbers (no of flats & no of floors)

VV1 (a)     02 November 2012

Sir,

 The builder is not interested in doing Registration of sale deed. He says he will build and sell flats in the land and wants only a POA for that. He is avoiding the Stamp duty charges by that. He says all builders are only doing like that. 

I want to sell that land and donot want any share in flats in that place.

Is that any trouble for me to issue POA without sale deed registration.

Thanks.

kumar (NIL)     03 November 2012

As you said nowadays all the builders are doing the same for avoiding the registration charges. I suggest you not to do POA on builder's name. Ofcourse it's not create any trouble to you for issuing POA. But remember one thing as an Indian you shouldn't avoid the charges. And one more thing don't for under value....

VV1 (a)     06 November 2012

Sir,

Thanks for the Reply.

some more clarifications. A broker is introducted a buyer to me. But is asking for chrages to do some improvement(filling up a big pit) for selling the land.

Can the payment for brokerage and 'improvement of land' charges be paid after the date of sale or before itself.

Should the above paid in cash or cheque only . Is recepts compulsory for the above payments , if applying for rebate in capital gains tax.T

 

Thanks


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