Here are the key points regarding buying a house using a Power of Attorney (POA):
Essential Considerations Regarding Power of Attorney (POA) for Property Transactions in India
Validity of POA: A general POA is valid for the lifetime of the grantor (the person who gives the POA). A special POA for a specific transaction is valid only for that transaction.
Restrictions on POA: The POA holder cannot transfer the property to themselves or their relatives. The transfer has to be to the person specified in the POA document.
Registration of POA: A POA used for immovable property transactions must be registered with the Sub-Registrar's office. An unregistered POA is not legally valid.
Stamp Duty: The stamp duty for -registering the POA is around 1% of the property value in most states. This is in addition to the stamp duty payable on the actual property transfer.
Revocation of POA: The grantor can revoke the POA at any time before the transaction is completed. The POA holder has no legal right to the property in such a case.
Risks for Buyer: The buyer should thoroughly verify the POA holder's authority and the grantor's ownership to avoid potential legal issues in the future.
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Read MoreHere are the key points regarding buying a house using a Power of Attorney (POA):
Essential Considerations Regarding Power of Attorney (POA) for Property Transactions in India
Validity of POA: A general POA is valid for the lifetime of the grantor (the person who gives the POA). A special POA for a specific transaction is valid only for that transaction.
Restrictions on POA: The POA holder cannot transfer the property to themselves or their relatives. The transfer has to be to the person specified in the POA document.
Registration of POA: A POA used for immovable property transactions must be registered with the Sub-Registrar's office. An unregistered POA is not legally valid.
Stamp Duty: The stamp duty for -registering the POA is around 1% of the property value in most states. This is in addition to the stamp duty payable on the actual property transfer.
Revocation of POA: The grantor can revoke the POA at any time before the transaction is completed. The POA holder has no legal right to the property in such a case.
Risks for Buyer: The buyer should thoroughly verify the POA holder's authority and the grantor's ownership to avoid potential legal issues in the future.
Also Read: What are the major components of technical analysis report at the time of possession of property?