Unregistered POA to buy a property
Querist :
Anonymous
(Querist) 02 June 2010
This query is : Resolved
Hello sir,
I'm interested in buying a property at Tambaram, Chennai. In 1997, the property was sold as UDS to 4 persons. Among that 4 1 person bought it through POA which was not registered. Again this person sold to another person through a registered POA . In the bank they are asking for the registration number POA which was not registered :(.
Current property owner is telling that since that person used unregistered POA for buying, its not mandatory to register and its a valid.
If I buy this property, will i face any problem?
Thanks in advance.
B K Raghavendra Rao
(Expert) 03 June 2010
It is the sub-registrar who should be satisfied about the registration or otherwise of the Power of Attorney for presenting the document of sale deed for registration. If the registration of the sale deed has already taken place, then it is presumed in law that it has been registered in accordance with law. To disprove that sale, the sale transaction need to be challenged. Since the unregistered POA has already been used for first sale and registered POA has been used for second sale, you may buy the property safely. There would not be any legal hitch for the transaction on account of POA.
Guest
(Expert) 03 June 2010
To complete the sale deed, the GPA must be registered. One cannot presume that there is no need to register a GPA document which is for the purpose of purchasing a property. (At first place the Sub-registrar should have insisted for it, but everyone knows the way these fellows work!). The Bank is right to demand the said GPA.
If it is feasible, it is suggested to get an Affidavit from the previous Seller to the effect that while he purchased the property he has given an unregistered GPA and through this Affidavit (duly notarised), he re-affirms the execution of the said GPA (mention the name and other details of person who has been appointed as Agent). After getting concurrence from the seller/previous seller regarding this, ask the bank authorities as to whether they will accept this Affidavit since sale deed has already been registered in favour of the current owner.
Querist :
Anonymous
(Querist) 08 June 2010
Thanks a lot for the reply Sir. But heard that the POA registration becomes mandatory from 1998 only and the above said sale happened in 1997. Also the person sold the same property through proper registered POA and sale deed executed with proper registration. When i discussed many said since the further sale of the property was registered properly and also no encumbrance now. its safe only to buy that. Is that correct.
( That person is no more now and so cant get affidavit as you said )
Please advice.
Thanks in advance...
