Power of Attorney
It is an instrument that provides authority to undertake legal matters on behalf of an individual called donor or principal through an individual called agent or donee. the facility to require decisions on behalf of principal might be associated with property related matters or financial matters. this is often because the principal is unable to personally execute himself thanks to the explanations of living abroad or suffering illness of some kind.
Types of Power of attorney
There are two sorts of Power of attorney, General Power of Attorney and Special Power of Attorney. A special power of attorney is one where a principal gives special powers to the agent or it’s an authority to act in specified circumstances only. A General power of Attorney on the opposite hand gives broad powers to the attorney-in–fact (agent). The agent is allowed to require decisions on principal’s behalf which are concerning business, financial, insurance, medical or legal matters.
There’s another POA referred to as Enduring Power of Attorney where the principal authorizes the agent to require decisions on his behalf even at the time the principal becomes mentally incapacitated. Both GPA and SPA can contain the clause of putting up with POA counting on the requirements and circumstances of the principal.
How to Get or Registration of power of attorney ?
In cases where the principal is personally present at the sub registrar office:
The POA is printed on a Rs.100 stamp paper and notarized.
The POA holder is then required to present himself at the sub registrar office alongside two witnesses. The Sub registrar keeps a record of POA and therefore the POA gets registered.
It is different when the POA holder is residing out of India:
The POA holder is required to send an affidavit through Indian Embassy of that country and therefore the agent in India is required to determine his/her relationship with the POA holder with relevant address and ID proofs. Any immovable property
having value quite RS 100 is required to be necessarily registered.
Judgment by Supreme Court
The Supreme Court in 2011 gave a judgement that the transfer of Immovable properties through GPA was not valid. There are properties that aren’t allowed to be sold for variety of reasons. This rule was misused by GPA holders to execute sale transactions through GPA. The Court ordered to form GPA registration mandatory otherwise the transfer shall be deemed to be invalid. For this reason, most of the state governments have started levying heavy stamp tax tax on GPA registration which is like that of Sale Deeds.
Procedure for giving an influence Of Attorney for a property in India:
For a resident Indian he/she can provides a power of attorney (GPA or SPA counting on the need) to a different person for executing certain documents or for taking care of the property. Normally people give Power of Attorney for executing rental agreement or sale/purchase of property on their behalf. The POA has got to be registered in sub-registrar office if it’s associated with a property, otherwise the POA holder wouldn’t be ready to execute the documents on behalf of the owner of the property. For resident Indian one has got to prepare a POA/SPA then attend sub-registrar office alongside the one that they’re giving POA. Two witnesses also are required.
In Case the owner (s) of the property may be a NRI then they will execute a POA/SPA within the foreign country then subsequently get POA notarized in Indian embassy. After the POA holder receives the POA in India they have to travel to sub-registrar office and obtain it registered.
How to get Power Of Attorney for an NRI
The alternative for NRI is to execute the POA/SPA in foreign Country and obtain the documents apostille (this is special sort of notarization of document by few notaries). Once the POA holder receive the apostle POA they will then catch on registered in sub-registrar office.
What is the Difference between a registered GPA (General Power of Attorney) and a Registered Sale Deed ?
The gives the agent i.e. you, nothing but certain acts mentioned within the GPA on behalf of the principal i.e. the one that executes GPA. No interest within the property is transferred when GPA is executed. GPA are often executed to try to anything which principal personally cannot. it’s not limited only with reference to the property. GPA are often cancelled at any time by the principal by mode set in GPA or by notice. Consent of agent isn’t needed to cancel it. There may or might not be some remuneration to the agent. GPA needn’t be registered depending upon the powers given by GPA. just in case of rights to transfer the property, GPA must be registered.
On the opposite hand, sale gives you ownership rights within the property and seller’s rights within the property are over the instant sale is duly executed. Sale can’t be cancelled unless by consent of both buyer and seller. In case, buyer doesn’t want to cancel it, seller has got to approach the court. Sale is restricted to the transfer of property. There has got to be valid consideration purchasable. Sale has got to be registered.
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