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madhavi (none)     09 May 2013

Purchasing property through poa or gift deed

Hello everyone,

NRI wants to buy property in India.

He has prepared General Power of Attorney (POA) in favour of his mother in April 2011 to purchase immovable property when he came to India for short period of time. He did not register POA but he has notarised POA as per advocate's advice since it was between blood relatives (mother and son). 

He did not purchase any immovable property in two years. Now he wants to purchase property. Presently, he is out of india. I have following questions in this regard:

1. Can he purchase the property using POA now after supreme court ruling that purchase of flat on POA basis is not permitted? Will this ruling applicable in this case? Can purchasing property on POA basis is vallid transaction in India?

2.If he can purchase property using POA in India, can he use the above mentioned POA or he has to prepare other POA now and get attested by respective Indian embassy and they register here.

3. If it is legal to purchase property on POA basis, what are the risk associated with it. Will he has some problem while selling the property.

4. which is better option for him....

a. Buying proprety through POA in his name OR

b. Buying property in mother's name now and then transfer it thorugh gift deed in his name and register it when he comes to India.

Regards,

 

 

 

 



Learning

 2 Replies

S R SHETTY (MANAGER - LEGAL)     29 October 2014

In Mumbai for registration, you need a Registered POA. Reg your buying of property, it depends on location and value. If it is high value, better to buy in your name than to gift later on, as it will attract stamp duty and regn fee again. You may buy property and pay stamp duty and it has got 4 months' time for regn. In the meantime you may come and register. Unregistered POA may work in rural areas, but will have to see whether she can buy in your name and register on your behalf, etc.

GUHAN M V (ASSISTANT METEOROLOGIST)     29 April 2015

I purchased a plot in 1998 from a POA.  But the POA has given power to another person to sell 20% of plots to Economically Weaker Section [EWS] under the guidence of Chennai Metropolitan Authority and it is time bound.  POA for selling the plots in the entire strech of land measuring 11 acre and 17 cents. Seventeen years lapsed since, and when now I go for selling purchaser is scared about the second POA for selling EWS plots[not my plot] .  The principal POA is now 85  year old and bedridden.  The other  POA is now residing in Rajathan due to his profession. 

[1] I can not approch both the POA now for effecting rectification deed. 

 

what I have to do Sir?


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