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Real Estate MUMBAI

Power of Attorney(POA) in property deals in Maharashtra

A POA is a legal document by which one person (donor-principal) gives another person (the attorney-agent) authority to act on his behalf and in his name. Every act performed by the attorney within the authority of the POA is legally binding on the person granting it. It may be pointed out that a POA is not an instrument of transfer with regard to any right, title or interest in an immovable property. Even an irrevocable POA does not have the effect of transferring title to the grantee. An attorney holder may, however, execute a deed of conveyance in the exercise of the power granted under the POA and convey title on behalf of the grantor.

The property can be sold only through registered POA. The Registration (Maharashtra Amendment) Act, 2010, effective from 1 April 2013, has resulted in the amendment of section 17 of the Registration Act, 1908, in its application to the State of Maharashtra. As per these amendments, an irrevocable POA relating to the transfer of immovable property in any way, executed on and after the commencement of the Registration (Maharashtra Amendment) Act, 2010, shall be compulsorily registrable. Thus, any POA granted to a person for sale of the immovable property will have to be registered with the applicable sub-registrar of assurances, failing which it cannot be put to use.

Further, it is advisable to mention the details of the property in respect of which the POA is to be utilized.

According to article 48 of the Maharashtra Stamp Act, the stamp duty payable on a POA, not being a proxy, when authorizing to sell or transfer immovable property, without consideration or without showing any consideration as the case may be, if given to the father, mother, brother, sister, wife, husband, daughter, son, grandson, grand-daughter or father, mother, brother or sister of the spouse, shall be Rs.500.

If it is executed in favor of a person other than a close relative, authorizing her to sell or transfer the immovable property, The stamp duty payable is the same as that on the sale of the property. However, when a person himself executes the transfer documents and gives limited power to admit execution before the sub-registrar, In such cases stamp duty payable shall be Rs. 500/- only.

For NRI POA can be executed before the Indian consulate in a foreign country and sent for stamping here.

However, for leave & license, notarized POA can be used.

Even while purchasing a property notarized POA to a blood relative can be used.

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