• Can power of attorney be used to execute sale deed in favour of spouse

Registered power of attorney was executed in 2007 on basis of which, the POA holder, who is not blood relative (or any sort of relative) executed a sale deed in 2008 in favour of his wife.
POA was issued on ₹100 stamp paper (ammendment of ₹500 came after 2013) and stamp duty of 4% was paid on the sale deed executed in 2008. 
The sale deed does not have photos, signature or thumb impressions of POA issuers, only POA holders signature photos and thumb impressions are present in sale deed.
Is the sale deed valid? POA act states that it should not be used by attorney for personal benefit. In this case property (farm lands) were sold to his wife which I feel is personal benefit.
No proof of him or his wife being farmers were presented in sale deed or available till date while purchasing this farm land.
What can be done in this case?
Asked 3 years ago in Property Law
Religion: Hindu

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8 Answers

Kindly check 2007 registered POA. What type of POA it is?

For e:g Legal, Custody, Services etc. What types of rights are mentioned in it.

 

Because on POA basis transfer of ownership is not transfer, means the POA holder do not have any power to transfer the rights, title of the property.

 

So, current owner or party who has problem can file case against POA person who sold the property in 2008.

 

Ganesh Kadam
Advocate, Pune
12997 Answers
264 Consultations

Don’t purchase the property 

 

if it is agricultural land buyer has to be farmer in Maharashtra 

 

if registered POA has been executed sale deed would not have principal photos , signature or thumb impression but only that of POA holder 

Ajay Sethi
Advocate, Mumbai
97809 Answers
7926 Consultations

It seems that the whole transaction is fraudulent. You should file a suit for cancellation of sale deed in the district court.

Rahul Mishra
Advocate, Lucknow
14108 Answers
65 Consultations

Dear Sir / Ma'am,

The law holds that a power of attorney is not an instrument of transfer in regard to any right, title, or interest in an immovable property but any genuine transaction carried out through General Power of Attorney is considered valid under the law. However, you are right a POA cannot make a transfer for personal benefit. In case you are thinking of purchasing such property consult your local lawyer for better help before you make any transaction.

Thank You.

 

Anik Miu
Advocate, Bangalore
10479 Answers
121 Consultations

If you propose to buy this property, you may better obtain a proper legal opinion to find out the facts and assess the genuineness of the proeprty before buying it.

The sale of property through GPA by the power agent for a valid consideration even  to his wife, it cannot be considered as a violation of the condition, because it was transferred by executing a sale deed and not by a gift deed. 

T Kalaiselvan
Advocate, Vellore
88012 Answers
2370 Consultations

The sale deed is valid 

The photo signature and thumb impression of the POA grantors are not required on the sale deed as the deed would be signed by the POA holder on behalf of the grantors 

The money received by the POA holder under the sale deed would be held by him on behalf of the owner/grantor and would go in the hands of the owner ultimately and not the POA holder 

The POA which contains power to sell clause is duly registered and therefore would also be stamped for the proper amount of duty. 

The purchaser wife of the POA holder can acquire the farmer's certificate even subsequent to the sale deed 

 

Yusuf Rampurawala
Advocate, Mumbai
7781 Answers
79 Consultations

Yes it can be done. 

Prashant Nayak
Advocate, Mumbai
33092 Answers
215 Consultations

- As per law , on the ground of unregistered POA , the attorney holder having no right to deal with the property in any manner.

- Further, the POA holder cannot use the POA for his personal benefit , and the said transfer to his wife come under personal benefit , hence the sale deed is not valid legally. 

- Further, till date the title of the property is with the principal due to transfer the property on the invalid documents. 

- The owner /principal can file a declaration suit before the court for declaring the said sale deed null and void. 

Mohammed Shahzad
Advocate, Delhi
14885 Answers
225 Consultations

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