Comprehensive Guide to Power of Attorney

Priyanka Tanwar P


Have you ever heard about Power of Attorney? An NRI sells their property with the help of legal advice or with the help of an attorney. But you always wonder what this attorney means, how do we know if this property price given by a customer will proliferate in future or not, what process we must follow to make our property safe from fraud or have profit if sold with a valuable customer.

This article gives you a deep sense of understanding to sell or even buy the property by legal advice or should we buy affordable property through a property dealer. In addition to this, we’ve also covered the aspect of saving your privacy in order to legalize the property you want to buy.

Mentioned below is all about the things you want to know regarding Power of attorney legal (POA) and how the seller took this and most important is this legal in everywhere or there are some exceptions in this.

First and foremost, let me tell you one of the most important definitions about legal attorneys. According to the power of Attorney Act, 1882 and the Indian Stamp Act, 1899. These legislations defined POA as an instrument empowering a specified person to act on behalf of the person executing the transaction. In other words, we can say that a person gives another person the legal right to present himself/herself as his representative who acts to perform specific tasks on his behalf.

Basically, it is a written document in which one person known as the Principal appoints another person to act as an agent on his or her behalf.

Types of Attorney

There are two types of attorney: General Attorney and Specific Attorney.

1. General Attorney (GPA)

General power of attorney gives an agent the rights to perform routine tasks on one’s behalf. For example, the general attorney will give you a broad authorization of the agent and also, not valid for any specific time period, whereas,

2. Special Attorney (SPA)

Is a special power of attorney where power is granted in order to get specific tasks accomplished. For example, when a property owner selects the person and authorizes him/her legal representative in a particular case and allotted a specific time period. 

Since registration is a must for both, whether GPA or SPA. An SPA loses its effect, as soon as the task it is intended for, is complete. A GPA can be revoked by the executor when they like, in their lifetime. Property sales through this will not give ownership title to the buyer. 

Where This Concept is Famous?

Actually, this concept of predominantly used by non-resident Indians(NRI’S), as it may not possible for them to visit his country where they emigrate for their education or may be pull or push factors. So, they try to sell their property without going there and POA in this regard is the handy for those who cannot perform various personal and professional tasks. Not only this, another important branch of these is big cities such as Delhi, Mumbai and so forth where this concept is quite been famous for hassle free life. Given this point, selling the property through common practice across Indian cities as it benefits both the buyer and the seller. The increasing use of this method causes a great damage with the growth of the property market, starting in the 1990s. Subsequently, the indulge met of Court takes place and eventually pass a land verdict which is explain below.

Why GPA is Use to Sell the Property?

As stated above, to sell agricultural land to an agent, people use it for sale without any hassle to avoid any payment of tax on capital gains earned on transfers. Further, flats, for example, which are allotted on a lease is permissible only after the expiry of a specified period. Thus, the transfer of this through GPA is widespread as it is done before expiry of such period. 

Is This Legal or Illegal?

To answer this question, we should know about the famous case held in India i.e. Suraj Lamp and Industries Pvt Limited vs. the state of Haryana case where Supreme Court verdict that property transactions carried out by way of POA do not hold legal validity and hence, in a 2019 judgment, the Power of Attorney will not be valid.

Legally, agricultural land could not sold for residential purposes due to the fact that they are fertile and not suitable for construction hence, most landowners sell their property without getting legal conversion and directly sell their property through General Attorney of power (GPA).

General Attorney as name suggests is the handling of all the business and legal transactions to principals authority. Following the order, the states banned the registration of properties sold through the General Attorney after imposing a ban on registration in 2012. But in 2012, the Delhi Government allowed registration property in favors of daughters, brothers, sisters, spouses and any other relative or person of trust by registered owners. If you want to learn more, read this article 

Real Estate Law – Choosing the Right Attorney for Business and Property Matters

However, all transactions through Power of Attorney are not illegal or wrong. Genuine transactions must be considered legal in India. Furthermore, the law has power of attorney which says that it is not an instrument of transfer in regard to any right, title or interest in an illegal property or wrongful conversion of property but any genuine transaction carried out by the General Power of Attorney is valid in the eyes of court. But law does not recognize any power with fraud so, to avoid this it is advisable to avoid this kind of power as it is not safe and is likely to increase the chances of complications. 


Thus, we see that selling property through inappropriate ways may lead to a resolve. You just be very careful before doing any sales and most importantly try to avoid the agent. Be realistic and affair around your surroundings because the more you become aware, the more you know the world around you. 


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