Sale Of Property using POA
20 Jan 2011, 04:59
GM Team, Need some expert help.
We have a property and we are planning to sell it to a party. Party does not want to go for a sale deed but interested in taking POA from my mother. He is paying the complete amount and does not want to mention it in the POA. Instead he wants to take a reciept from us saying that my mother had recieved “xxx amount” from him. He says that it is valid and we will not have any legal issues. Want to check whether is this correct? Can we sell our property through POA? Do we have to put the “xxx amount” in the POA saying that this POA is given for so much amount or is that fine to go ahead with POA without amount mentioned.
Please need your help.
1 Reply
Power of Attorney is a document empowering the attorney to do the acts, deeds or things mentioned in the POA behalf of the executant. A property cannot be sold by POA. One can execute a Power of Attorney in favour of a buyer instead of sale deed, but in such case the buyer will become only the attorney of the executant not the buyer of the property, he shall have the power to sell the property to any body as an attorney but he shall not have the right to claim as the owner of the property. It is to be noted, a POA is automatically cancelled on the death of the executant. You can execute POA in favour of the buyer instead of sale deed. But regarding money receipt, I think if You give him an extra acknowledgement of receipt of money, then he shall have the right to file money suit against you for recovery of money. If you mention the amount in the POA, it will be better but then additional stamp duty may be imposed on the basis of the amount mentioned. Another thing You can do, execute another registered agreement between You and the buyer regarding payment and receipt of money mentionting the property sold and POA execution.