Power of Attorney in India: Property Registration

A Power of Attorney (PoA) is a legal document that allows an individual (the principal) to authorize another person (the agent or attorney-in-fact) to act on their behalf. In the context of property registration in India, a PoA can be used for various purposes, such as managing property, executing transactions, and representing the principal in legal matters related to the property.

Types of Power of Attorney

1.General Power of Attorney (GPA):

   - Authorizes the agent to perform a wide range of activities on behalf of the principal.

   - Used for general administrative tasks such as managing property, handling bank accounts, or conducting business transactions.

2.Special Power of Attorney (SPA):

   - Authorizes the agent to perform specific tasks or activities.

   - Used for particular tasks like selling a property, executing a lease agreement, or representing the principal in a specific legal matter.

 Key Features and Uses of PoA in Property Registration

1.Execution:

   - A PoA must be executed on a non-judicial stamp paper of appropriate value, which varies from state to state.

   - It must be signed by the principal and two witnesses.

2.Registration:

   - According to the Indian Registration Act, 1908, a PoA related to immovable property transactions must be registered.

   - The registration process involves the principal and agent visiting the sub-registrar’s office with the original PoA document and identification proof.

   - The document is then signed and registered in the presence of the sub-registrar.

3.Revocation:

   - The principal has the right to revoke the PoA at any time.

   - To revoke a registered PoA, the principal must draft a revocation deed, execute it on a non-judicial stamp paper, and register it with the sub-registrar.

   - Notice of revocation should be communicated to the agent and any third parties involved.

4.Legal Implications:

   - The agent must act in the best interest of the principal and within the scope of authority granted by the PoA.

   - Any act performed by the agent beyond the granted authority may be considered invalid.

   - If the agent commits fraud or misappropriation, the principal can take legal action against the agent.

5.Validity:

   - The PoA remains valid until it is revoked by the principal, the principal or agent dies, or the specific task for which it was granted is completed.

   - In case of the principal’s death, the legal heirs must take appropriate legal steps to manage or transfer the property.

Process of Using PoA for Property Transactions

1.Drafting the PoA:

   - Clearly outline the powers and responsibilities of the agent.

   - Include specific details of the property and the transactions the agent is authorized to perform.

2.Execution and Attestation:

   - The principal signs the PoA in the presence of two witnesses.

   - The witnesses also sign the document to attest to its authenticity.

3.Registration:

   - Visit the sub-registrar’s office with the PoA document, identification proof, and photographs.

   - Complete the registration process, including payment of registration fees.

   - Obtain a registered copy of the PoA.

4.Use in Transactions:

   - The agent can now represent the principal in property transactions as authorized by the PoA.

   - The agent must present the registered PoA document during property transactions to validate their authority.

5.Revocation:

   - If the principal wishes to revoke the PoA, they must draft a revocation deed and register it with the sub-registrar.

   - Inform the agent and any third parties involved about the revocation.

Conclusion

A Power of Attorney is a powerful legal tool that facilitates property management and transactions in India. It is crucial to understand the legal requirements and implications of executing, registering, and revoking a PoA to ensure that the principal's interests are adequately protected. Properly drafted and registered PoAs can streamline property transactions and provide a reliable mechanism for managing property-related affairs.