SELL LAND THROUGH POWER OF ATTORNEY

Your land is undoubtedly your most valuable asset. Regardless of its size and value at the time of purchase, it is no less precious to you. Most importantly, it’s your investment of a lifetime. And, under no circumstances would you ever want anything to go wrong with it, right? But, since land is your most precious commodity, it can yield you substantial benefits too, monetarily. Consequently, the sale of land is perhaps the wisest and safe option to make some returns out of this investment. The most important part is, to sell a piece of land you need to be the legal owner of it. Transferring a property through General Power of Attorney (GPA) is unacceptable. If you are looking to sell land through power of attorney (POA); it’s not agreeable.

Sell Land Through Power of Attorney: A Critical Decision

If you are selling the land yourself to a seemingly trustworthy buyer, no issues. However, it may so happen that you may not be physically present or in a condition to sell it off. Let’s say, you’re settled in a foreign land and wish to sell off your property left with no attendance back home. It may not be possible for you to travel back and forth too often. Or, you may be either too old or perhaps not in a physical condition to carry out the legalities of the process yourself.

Under these circumstances, people generally prefer to appoint a land Power of Attorney (PoA), who represents the seller in all legal matters concerning the said property. Moreover, the PoA also assumes all rights to carry out any proceedings (buying/selling further) in relation to the property.

Is Land Registry Power of Attorney Legal?

This is a prime question that should come to your mind the first instance you think of selling your land through a PoA. Well, for starters, here’s a news for you: As per the latest ruling by the Supreme Court of India, “sale or transfer of property through a General PoA (GPA) cannot give ownership title to the buyer”.

All contemplation on this issue somewhat ends here. The apex court of the country has ruled that one cannot sale or buy a deed for a land through a PoA. Failing this, the buyer would not be able to assume their rights to the property. The court has also declared the GPA method an “invalid” form of property transfer.

PoAs Have Always Been Prevalent

True. The practice of transferring property rights through a PoA has been quite common for decades. But the practice has some serious loopholes. These were unfortunately overlooked until now. But with the court ruling, there seems to be some hope of avoiding such grave errors in the future.

Reasons why it may not be ‘legally’ safe to sell the land through a PoA

The most eminent problem that exists with this system is that it continues to hold you responsible for any illegal act/proceeding on the land, after you have transferred it to a PoA. And, even if you appoint someone to carry out sale actions on your behalf, you still continue to be its legal owner. In this case, only you would be accountable in a court of law if any illegality is carried out by someone on your behalf.

Most people lure landowners to give them PoA rights. This is to save themselves from paying stamp duty and income tax as per the value of the said property. In this case, if they further sell the land for construction purposes to a builder, all income tax on the earnings from the sale of homes built thereon is your responsibility.

To sum up, it’s always better to go in for a legal sale deed in favour of the buyer. No middleman and no risk whatsoever once you legally transfer the property to another party. Land registration is the best for ownership, possession and transfer of rights.

In short, this blog aims to make you understand the importance of registering property. This is to help you know the process to follow. It is important the entire transaction that involves the sale of an immovable property with awareness.

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