Brief note on power of attorney

A power of attorney deed is a widely used document which enables the Attorney (power of attorney holder) to carry out certain acts on behalf of the Principal (the person making the power of attorney). The principal can decide what powers can be shared with the attorney and the acts done by the power of attorney holder are considered as if they are done by the principal himself/herself(Sec.2 (21) of Indian Stamp Act, 1899 &(Sec.1A of Powers of Attorney Act, 1882)

Types of Power Of Attorney

A power of attorney can be general or special. A general power of attorney gives the attorney general sweeping powers to act in all such general situations. A special power of attorney would be deemed to be given only for A single transaction like to sell a single property, operating a bank account, collecting rents etc.

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A power of attorney depending upon the situation can be made operational till the lifetime of both the principal and attorney or can be revoked by the principal. Upon the death of either party the power of attorney stands cancelled.

And when the principal authorizes the agent to present on his behalf the document or documents executed by him (principal), in the concerned Registration offices under Sec.33 of the Indian Registration Act, to admit execution and do the allied acts therefore.

Both the parties to the power of attorney deed must fully understand what their rights and obligations are under the deed and should act accordingly. The principal shall ratify i.e consent to the acts of the attorney which he has done in his course of duty as an attorney.

Now there are 2 kinds of situations that may arise –

In the first situation, Mr. X gives a general power of attorney to any trusted person who would ensure sale of the property and also present and execute the sale deed before a Sub-registrar. In such a scenario, the attorney, representing Mr. X, shall sign the sale deed. Such a power of attorney need not be attested as the power of attorney holder himself is the executant and it needs to be registered as it involves transfer of immovable property.

In the second situation, Mr. X signs the sale deed documents and receives the consideration for the same. However, he is unable to present the sale deed for execution before the Sub-registrar. In this case, he shall appoint an attorney only to present the sale deed before the Sub-registrar. This power of attorney has to be attested under the Registration Act by a Sub-registrar in whose jurisdiction the property falls. Further, in case Mr. X is someone living abroad, then the power of attorney deed shall be attested by a Notary Public of that country or by Consul or Vice-Consul of India.

And the attestation and registration are 2 different aspects and one cannot be substituted for the other.

Power authorizing the agent to procure registration of document executed or signed by the Principal.Then the power should be attested in the manner laid down in section 33 of the Registration Act.

For instance: If the Principal is residing abroad, the sale deed and special power of attorney drawn up on un-stamped papers can be sent to him (principal).Thereafter the principal execute (sign) the sale deed and get it attested by 2 local witnesses. And it shall be got attested by the Notary Public or Indian Counsel or Vice Counsel.  Then the principal should send both the documents (sale deed and POA) to the Agent where he resides who should within 3 months from date of receipt, present them to the concerned Collector under Indian Stamp Act.  The concerned Collector under Indian Stamp Act after collecting Market value from the Registrar concerned and collect the required stamp duty under section 18 of the Stamp Act. The Collector under Indian Stamp Act shall add a certificate under Sec.19 of I.S.Act. Thereafter, the agent may present the sale deed alongwith the special Power of Attorney to the Sub-Registrar concerned for the registration of Sale Deed.

NOTE: i)    Where the Principal resides in any part of

India where the Registration Act is in force. =======  Registrar or

                                                                   Sub-registrar concerned

1. ii) In any part of India where the Registration

Act is not in force                                       = Magistrate.

iii)     Where the principal resides out of India               =  Notary public or

any Court,Judge/ Magistrate/

Indian Counsel or Vice Counsel, or  Representative

                                                                             of Central Government.

And some powers will be given to sell the property in full extent or in small extents or to develop and sell the property to the parties/buyers.  In such cases the Stamp duty shall be levied on the consideration or Market Value whichever is higher. But the Stamp duty varies from one State to another State.  The Stamp duty rates for some States are given hereunder:

When the property is situated in Delhi,

Special Power of attorney (for a single transaction)               Rs.20/-

General Power of Attorney                                                Rs.50/-

When given for consideration and authorizing

the attorney to sell the immovable property: @Rs.5% on the amount of

consideration.

When the property is situated in Maharashtra :

For Special Power of Attorney                                         Rs.100/-

For General Power of Attorney                                        Rs.100/-

(i) when given for consideration and authorising to sell an immovable property;

if relating  to immovable property situated-  

(i)within the limits of any municipal Corporation or

any cantonment area annexed to it or any urban area 

not mentioned in sub clause (ii)                                        @ Rs.5%, of the

                                                                   market value of the property. 

(ii) within the limits of any  Municipal council or

Nagar Panchayat  or Cantonment area annexed to

it, or any rural area within the limits of

the Mumbai Metropolitan Region Development

Authority,or the Influence Areas as per the

annual statement of rates published under the

Bombay Stamp (Determination of True Market

Value of Property)Rules,1995.                                @ Rs.5% of the market value

of the property. 

 (iii) within the limits of any Grampanchayat area or

any such area not mentioned in sub-clause (ii).          @ Rs.4% of the market

value of  the property. 

(c) if relating to both movable and immovable property.    @ Rs.3% + Rs.5% total

                                                                                                Rs.8%.

(d) if given to the father, mother, brother, sister, wife,

husband, daughter, grandson, granddaughter or such

other close relative;                                                               Rs.500/-

When the property is situated in Karnataka:

Special Power of Attorney                                                     Rs.100/-

For General power of Attorney                            Rs.100/-

When authorizing the agent to sell any

immovable property:                                               @ 5% on the amount of

consideration or Market Value whichever is higher.

When the property is situated in Uttar Pradesh:

Special power of Attorney                                               Rs.50/-

GPA                                                                                 Rs.100/-

When authorizing

(a)grandfather father, grandmother, mother,

husband, wife, son, grandson, daughter, real brother

real sister, without consideration to sell or otherwise

transfer an immovable property,@ Rs.100/- only.

(b) a person other than those mentioned in clause (a) above,

without consideration to sell or otherwise transfer

an immovable property-

(i) given for a period not exceeding two years, @ Rs.5,000/- only.

(ii) given for a period exceeding two years or

for a period not mentioned in the instrument

or for an indefinite period,@ Rs.8% for the market

value of the property, which is the subject of the instrument

(c) any person to sell or otherwise transfer

an immovable property situated in Uttar Pradesh,

when given for consideration, @ Rs.8%for the amount of

consideration or market value of the

property, whichever is higher

When the property is situated in Telangana:

Special Power of Attorney                                                        Rs.20/-

General Power of Attorney                                                        Rs.50/-

General Power of attorneryauthorising agent being

afamilymember to sell, transfer or develop immovable

property, the stamp duty shall be leviable                              @ Rs.1000

general power of attorneryauthorising agetnt to sell,

transfer or develop immovable propertygiven to outsiders (other thanfamily members)                                 @ Rs.1%

When the property is situated in WEST BENGAL:

Power of Attorney

"(g)when given to a promoter or developer, by whatever name called, for construction on, or sale of, or transfer (in any manner whatsoever) of, any immovable property –

(i)where the market value of the property does

not exceed rupees thirty lakh;Rupees five thousand

(ii)where the market value of the property exceeds

rupees thirty lakh but does not exceed                  Rupees Seven thousand

rupees sixty lakh;

(iii)where the market value of the property exceeds

rupees sixty lakh but does not exceed one crore ;Rupees ten thousand

(iv)where the market value of the property exceeds

rupees one crore but does not exceed rupees         Rupees twenty thousand

one and half crore;

(v)where the market value of the property exceeds

rupees one and half crore but does not exceed                 Rupees forty thousand

rupees three crore;

(vi)where the market value of the property exceeds

rupees three crore;                                             Rupees seventy five thousand

When the property is situated in TAMILNADU:

GPA in general terms                                          Rs.100/- (Regn. Fee RS.100/-)

General Power of Attorney to SELL the immovable

property      Rs. 100/- only (Reggistration

fees Rs.10,000/-)

General Power of Attorney given for

consideration                                                         @ Rs. 4% on Consideration

When the property is situated in ANDHRA PRADESH:

Special Power of Attorney                                                        Rs.20/-

General Power of Attorney given for

Consideration and authorising the attorney to

Sell any immovable property if given to family

Members (blood relatives such as father, mother,

Son, daughter etc.)                                                                   Rs.1000/-only.

General Power of Attorney given for

Consideration and authorising the attorney to

Sell any immovable property if given to other than

familymembers                @ Rs. 1% on Consideration or

the Market value equal to the amount of

the consideration.

When given for construction on

Development of, or sale or transfer (in any

Manner whatsoever)of, any immovable property         @ Rs.5% on the Market

Value of the property.

Further it has to be observed that there is no validity period unless specified in GPA. 2) Valid till the death of the Principal or revocation. GPA holds good as long as the purpose mentioned for giving the authority is fulfilled provided it is a registered one. If no time is specified then regn done after ten years also is valid.

And Notarized GPA is not valid it may create problem in future.

Information obtained from various authors and other sources.

By

K.A.V.K.Satyanarayana,

Sub Registrar/Supdt.,(Retd.),

Vizianagaram.

9490929460.