• Discrepancy in Special power of attorney

I am planning to buy a immovable property in bangalore. The owner is a US citizen. Owner has given SPA to his father (F) who resides in Bangalore to sell the property. Owner (S) has inherited the property from his mother (M) after her demise. Here is the excerpt from SPA
' WHEREAS I am the absolute owner of the property bearing XX situated in XXXXX, mesauring XXXXX, presently comes under the jurisdiction of BBMP bearing Katha no. XXXXXX. Which was purchased by mother XXXXXX W/O XXXXX, through a salde deed registered as document no XXXXXX Stored in C D no XXXXX dated XXXXXX. After her demise on XXXXXX with the consent of my Father XXXXX the katha has been transferred in my name and became absolute owner of the above property. '
My Questions are
1. After Mother's demise, both Father and Son obtain equal ownership rights of the property. What is the legal way for Father to transfer his share of property ownership to Son?
2. Does the Son become the absolute owner of the property by transferring katha to his name, with consent of this father ?
3. If the property rights were not transferred in right legal way to son ( like relinquishment deed) or any other method before executing the SPA, the statement ' I am the absolute owner' in SPA is not valid. Does it make the SPA invalid ?
4. what are the options to proceed now ? 
 I. Execute a sale deed identifying both Father and Son as equal owners. Is the current SPA valid?
 II. Get relinquishment deed from the father and execute a sale deed identifying only Son as the owner, through SPA already given. Is the current SPA valid?
Asked 4 years ago in Property Law
Religion: Hindu

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12 Answers

1. By executing a registered Release Deed relinquishing his share in the property in favour of his son, the father can transfer his equal share in the property in favour of his son. After this exercise, the son becomes the absolute owner of the property ( assuming that this son has no siblings ).

2. No, Son by just procuring Khatha in his name with consent of his father can't become absolute owner of the property.

3.  Legally speaking the SPA may not be valid, as the son is not the absolute owner of the property.

4.  (a). Executing sale deed by both father and son using a fresh POA.

     (b). Relinquishment Deed to be executed by the father in favour of his son first and then using the current SPA to execute the sale deed in favour of the prospective buyer.

Shashidhar S. Sastry
Advocate, Bangalore
5448 Answers
330 Consultations

Father has to execute gift deed in favour of son to transfer property in his name 

 

2) mere mutation in revenue records does not make son absolute owner of property 

 

3) statement is not valid 

 

4) option is for both father and son to execute sale deed in your favour 

Ajay Sethi
Advocate, Mumbai
97452 Answers
7876 Consultations

mere averment in SPA does not make son absolute owner of property 

Ajay Sethi
Advocate, Mumbai
97452 Answers
7876 Consultations

  1. Check if the SPA is properly attested by Consulate. Property is transferred from mother to son by consent of father after death of mother. Though it is not clear from SPA as under what document the property is transferred by father to son, the father executing sale deed on behalf of son amounts to NOC for transfer of property from which  he cannot go back.
  2. When father has given consent to transfer of property it amounts relinquishment of his share in the property.
  3. The consent by father to transfer of khata is documented, that can be verified from records. The SPA is executed in favor of father who is shareholder in property and if he executes the sale deed it amounts to express consent to sell of property to buyer.
  4. Get the sale deed executed by father signing for himself by making a declaration that he has no objection to transfer and signing for son as his SPA.
  5. Executing relinquishment deed before execution of sale deed is roundabout way. The straight and safe way stated in answer No. 4.
  6. The date of execution of SPA is not disclosed to verify its validity.
  7. The most important, is ascertain if there are any other claimants to the property like sons/daughters ect.

Ravi Shinde
Advocate, Hyderabad
4378 Answers
42 Consultations

The prior execution of SPA is validated by subsequent relinquishment deed. Subsequent  execution will not nullify the prior SPA.

Ravi Shinde
Advocate, Hyderabad
4378 Answers
42 Consultations

Legally speaking the SPA will be defective. However, the claim by the son as absolute owner of the property, when he's not can be waived off, as the property in question belongs to the same family and there's no ulterior motive behind this. However obtaining a new POA after getting the Release Deed executed by the father in favour of his son is recommended.

Shashidhar S. Sastry
Advocate, Bangalore
5448 Answers
330 Consultations

1. By a registered deed of gift or deed of relinquishment.

2. No, by mere consent devoid of a registered deed of transfer share is not transferred from one to another.

3. Yes, make it' I am half share holder of the property'.

4. As advised above.

Devajyoti Barman
Advocate, Kolkata
23319 Answers
522 Consultations

1. As per law , after the death of mother intestate , her property would be devolved upon all the legal heirs i.e. her husband and children equally .

- If , there are only two legal heirs , then they will have equal share in the property , and either of them can release his share in favour of other after executing a registered Relinquishment deed . 

2. No, in the absence a registered Relinquishment deed and only by way of transferring Katha , son cannot become single owner of the property. 

3. Yes

4. Yes, if there is no Relinquishment deed , then both of them should transfer their respective share in your favour. 

- Further the said SPA if attested from the office of Indian consulate in USA , then it is a valid SPA for said work. 

Mohammed Shahzad
Advocate, Delhi
14746 Answers
224 Consultations

 

My Answers to your Questions are -

1. After Mother's demise, both Father and Son obtain equal ownership rights of the property. What is the legal way for Father to transfer his share of property ownership to Son?


A.1. Either to execute gift deed, sale deed or relinquishment deed in respect of his share to his son.

2. Does the Son become the absolute owner of the property by transferring katha to his name, with consent of this father ?


A.2. Without any legal title documents, the share in property cannot be transferred.

3. If the property rights were not transferred in right legal way to son ( like relinquishment deed) or any other method before executing the SPA, the statement ' I am the absolute owner' in SPA is not valid. Does it make the SPA invalid ?


A.3. Your are right. The SPA is invalid.

4. what are the options to proceed now ?

I. Execute a sale deed identifying both Father and Son as equal owners. Is the current SPA valid?

A. 4.i. Get the sale deed executed from both the father and the son and get the name of son transferring katha be got cancelled before execution of the sale deed or get the name of both father and son included in the katha.
No. current SPA is not valid.

II. Get relinquishment deed from the father and execute a sale deed identifying only Son as the owner, through SPA already given. Is the current SPA valid?
A.4ii. Get the RD from the father and execute a sale deed identifying only Son as owner. A fresh SPA be taken from the father in favour of the son after execution and registration of the RD.






 

Dalip Singh
Advocate, New Delhi
1093 Answers
36 Consultations

1.  As you rightly observed that both the son and the father are cosharers  in the capacity of the legal heirs to the deceased property owner, the father has to execute a registered release deed relinquishing his rights in the property in favor of the other co-sharer.

Mere NOC to transfer the khata in favor of the other shareholder will not confer title to the entire property in favor of the other shareholder.

In the given circumstance, the owner of the property now trying to sell this property through his power gent is actually having a defective tile hence it is advisable to either keep off from buying this property or insist the seller to obtain a registered release deed in his favor from the other shareholder in order acquire clear and marketable title to the property  after which he becomes eligible to sell this property.

2. No.

See the above answer for more clarity to your question.

3. The principal who had execute the SPA in favor of the power agent is not having a clear and marketable title to the property which he intends to sell, hence the power agent cannot sell the property on behalf of his principal with the defective title.

4. You see the anser to the first question about the options available.

5. 

T Kalaiselvan
Advocate, Vellore
87650 Answers
2352 Consultations

The SPA executed before the principal acquiring the title for the entire property is invalid and not legally valid.

Therefore if the relinquishment deed has been made subsequent to the execution of this special power of attorney deed, then the power agent may not be able to execute a sale deed on the basis of the defective title to the principle to sell the property on behalf of the principal.  The principal may execute a fresh SPA deed authorising his power agent fresh once again to sell his property after he acquires the absolute and marketable title to the property.

.

.

 

T Kalaiselvan
Advocate, Vellore
87650 Answers
2352 Consultations

Dear sir,

 

A legal way to transfer the property is to get a relinquishment deed. A relinquishment deed is a legal document which has the effect of giving up or releasing the rights, titles and interest of a particular legal heir in favour of other legal heirs in a common property. The father is supposed to make this deed and then all the rights over the property would belong to the son. 

A fresh SPA has to be made after the relinquishment deed is made in the name of the father. 

No the current SPA is not valid. The second option should be resorted to . Such sale deed made would be legally valid. Thank you.

 

Anik Miu
Advocate, Bangalore
10358 Answers
121 Consultations

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