A power of attorney is a written authorization to represent or act on another’s behalf in private affairs, business or some other legal matter. The person authorizing the other to act is the principal, grantor, or donor while the person authorized to act is an agent.
If your sale deed is being executed by virtue of power of attorney, take these precautions:
- Power of Attorney is properly registered and adequate Stamp Duty has been paid.
- Signatures and photographs of Principal and Power Agent (if applicable) are affixed
- The Principal has valid title to the Property
- The Principal’s name is reflected as owner in the revenue records
- Description of property is in order
- The Power Agent has authority to Sell the Property by virtue of Power of Attorney document
To avail loans based on power of attorney, make sure that:
- Power agent has authority to sign loan documents
- To create equitable mortgage in favour of banks/FIs on behalf of principal
- On the date of execution of any document based on power of attorney document, ensure the document is in force and the principal is alive.
- Check if original duty registered general power of attorney document is available.
- If power of attorney document is executed outside India, it should be notarized or signed before Indian Consulate officials and duly adjudicated within 120 days from date of execution of said power of attorney document.
All the best!
Mr G Shyam Sunder is a Practising Advocate in Chennai for the past 14 years. His book “Property Registration, Land Records and Building Approval Procedures followed in Various States” is in its second edition.