A power of attorney deed is a widely used document which enables the Attorney (power of attorney holder) to carry out certain acts on behalf of the Principal (the person making the power of attorney). The principal can decide what powers can be shared with the attorney and the acts done by the power of attorney holder are considered as if they are done by the principal himself/herself.
A Power of Attorney for Registration is a PoA deed executed by a person giving the right to register his property at the Sub-Registrar office to someone on his behalf.
What Is The Purpose Of Power Of Attorney?
The purpose of making a power of attorney deed is that, if due to certain circumstances like ill-health, life abroad or due to paucity of time you delegate your powers to a known person including family members to look after your affairs. The advantage is that all acts done by the attorney holder would seem to be done by the principal as he his performing the delegated acts under his/her supervision.
What Details Are Included In POA Deed?
Typically, a power of attorney deed would mention the date and place in which the document is made, besides the details of the principal and attorney i.e, name, age, address etc. The deed would also state what powers have been delegated by the principal to the attorney.
Types Of Power Of Attorney
A power of attorney can be general or special. A general power of attorney gives the attorney general sweeping powers to act in all such general situations. A special power of attorney would be deemed to be given only for special purposes like operating a bank account, collecting rents etc.
A power of attorney depending upon the situation can be made operational till the lifetime of both the principal and attorney or can be revoked by the principal. Upon the death of either parties the power of attorney stands cancelled.
How To Make A Power Of Attorney Legally Valid?
Any person who is above 18 years of age and of sound mind can appoint an Attorney. A minor cannot be appointed as an attorney holder.
To make a power of attorney legally valid, it needs to be signed by both the principal and attorney along with 2 witnesses. The deed shall then be executed on a Stamp Paper of appropriate value depending upon the state in which it is made. It is not necessary to register the power of attorney deed unless it involves transfer of property rights/title etc.
Both the parties to the power of attorney deed must fully understand what their rights and obligations are under the deed and should act accordingly. The principal shall ratify i.e consent to the acts of the attorney which he has done in his course of duty as an attorney.
Power Of Attorney For Registration
When an individual buys an immovable property, the same has to be registered with the Sub-Registrar’s office by paying the appropriate fees, depending upon the value of the property in question.
For instance- A person Mr. X wants to sell a house, but has not found any suitable buyer for the property. Due to some personal difficulty he is not able to look out for a buyer nor will he be able to register the sale deed at the Sub-registrar’s office. In this scenario, what is he supposed to do?
The simplest solution to the problem is as follows- Mr. X can authorise an agent by a power of attorney. The power of attorney would ensure the property is sold at a good rate and receive consideration for the same, on behalf of Mr. X.
Now there are 2 kinds of situations that may arise –
- In the first situation, Mr. X gives a general power of attorney to any trusted person who would ensure sale of the property and also present and execute the sale deed before a Sub-registrar. In such a scenario, the attorney, representing Mr. X, shall sign the sale deed. Such a power of attorney need not be attested as the power of attorney holder himself is the executant and it needs to be registered as it involves transfer of immovable property.
- In the second situation, Mr. X signs the sale deed documents and receives the consideration for the same. However, he is unable to present the sale deed for execution before the Sub-registrar. In this case, he shall appoint an attorney only to present the sale deed before the Sub-registrar. This power of attorney has to be attested under the Registration Act by a Sub-registrar in whose jurisdiction the property falls. Further, in case Mr. X is someone living abroad, then the power of attorney deed shall be attested by a Notary Public of that country or by Consul or Vice-Consul of India.
Please bear in mind that attestation and registration are 2 different aspects and one cannot be substituted for the other. A document that requires attestation but is registered instead cannot be accepted.
Acts Of Attorney For Registration Of Sale Deed
- The attorney, under the standing instructions of the principal, would execute the sale deed and sign all such papers that may be so required for such execution.
- In discharging his duties the attorney may consult any advocates/law firm to ensure smooth transitioning of things.
- The attorney is duty-bound to declare the true value of the property in question for the sale deed to be registered.
- Next, the primary duty of the attorney would be to present the sale deed for registration before the Sub-Registrar and he would also receive the consideration on the sale of the said property and deposit the same in the principal’s current bank account. He would also take a receipt for the sale transaction.
- In case a dispute arises regarding the property in question in any court of law or any connected matter, the attorney shall present himself before such court.
- Lastly the attorney, after completion of all the formalities, shall hand over vacant possession of the property to the buyer, at the earliest.
Thus, we can observe that for presentation and execution of documents before the Sub-Registrar, the seller doesn’t have to be physically present. He can assign this task to a known person through a power of attorney for registration purpose. The above procedure is usually followed by people having their property in some other state, and even those who live abroad and want to dispose of their property in India.
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