is it safe to buya builders floor in power of attorney or there is any risk of fraud later?

Q: i am scared that as power of attorney is not a legal document for transfer of property and investing money in the floor can be risky but with my budget i can get a house in this locality only.

monica meena,

10th June 2016

Legal in Delhi

power of attorney

buying of property through poa

risk of buying property through poa

Follow Discussion

Also see discussions for

Delhi Legal Legal in Delhi

Replies (5)

thanks for sharing

liyans, Kolkata

9th July 2016

Comment

So in case i buy the house on power of attorney then can the seller claim it back???

monica meena,

14th June 2016

Comment

Hi
A lot of real estate is being bought through GPA; however, as a power of attorney is not an instrument of transfer in regard to any right, title or interest in an immovable property, it still serves several purposes for buyers and sellers, particularly where registration of sale deed is not possible due to some legal issues.

Sonia, Gurgaon

14th June 2016

Comment

I think Sonia Ji is right.
And even The Honorable court has held that when someone transfers any immovable property through GPA, it does not convey any right or title or create any interest in respect of such immovable property in favor of such person as only a deed of conveyance/sale deed which is duly stamped under the provisions of the Stamp Act applicable to the state in which such property is situated, as well as registered under the provisions of the Registration Act, does so.

ankurrajput, Delhi

14th June 2016

Yes Ankur....
A Power of Attorney specifies the powers you give to your attorney-in-fact. The powers can be limited or broad. For example, if you are selling your house, but unable to attend the closing, you can give someone the power just to sign the deed in your absence. Most durable powers of attorney, however, give your attorney-in-fact the power to do almost anything you could do.

But remember, Banks, brokerage firms, and other financial institutions may not accept your Power of Attorney. They may require you to sign one of their own forms. Sometimes a lawyer can convince the institution to accept your Power of Attorney.

Shivshankar, Delhi-NCR

14th June 2016

Comment

Hi Monica,
It is very necessary to know as to why such kind of indirect sales came into existence. The most dominant reasons for such kind of Indirect Sales were to avoid prohibitions/ conditions regarding certain transfers (as some deeds of conveyance contain the clauses that the property can only be sold after 15 years from the date of construction of some building on the plot/property), to avoid payment of stamp duty and registration charges on deeds of conveyance, to avoid payment of capital gains on transfers, to invest black money etc.

ankurrajput, Delhi

14th June 2016

Comment