Property sales through GPAs entail the property owner executing a GPA for a friend, family member, or trusted acquaintance to manage.
The sale of property through a power of attorney is a subject of discussion and analysis in the legal community. Let’s examine the available data to comprehend if property sales made through registration of power of attorney.
In legal and financial concerns, including the sale of property, one person (the agent or attorney-in-fact) is given the ability to act on behalf of anohttps://en.wikipedia.org/wiki/Power_of_attorneyther person (the principal) through the use of a power of attorney (POA). Provided with the power of attorney, the agent may take care of the whole property selling process, including locating a buyer, settling on a price, and signing the sale transaction.
Depending on the jurisdiction, sales of real estate made through powers of attorney may not be lawful. The Supreme Court of India, for instance, declared that property transactions carried out under a general power of attorney (GPA) are not protected by the law. According to the court, only registered sale deeds provide such transactions legal standing, and the sale of property through a power of attorney is prohibited.
The Indian Supreme Court ruled in Suraj Lamp & Industries v. State of Haryana that sales conducted under general power of attorney do not transfer ownership and do not qualify as transfers. The court stressed how crucial registered sale documents are to the legality of real estate transactions.
It is noteworthy to mention that power of attorney used in real estate transactions has been customary in India and other nations. Nonetheless, the decision by the Supreme Court has drawn attention to the possible abuse and fraudulent activity connected to these transactions.
A power of attorney (POA) is a legal instrument that gives someone (the agent or attorney-in-fact) the mandate to handle financial and legal affairs, including the selling of real estate, on behalf of another person. In addition to locating a buyer and negotiating the price, the agent can manage other elements of the property sale with the power of attorney, including signing the sale documents.
The Supreme Court of India has ruled, in short, that the sale of property through a power of attorney is illegal. For property transactions to be deemed lawful, the court has stressed the need of registered sale documents. When performing real estate transactions, it is best to seek legal advice from experts in the field and follow local laws.
© 2024 Crivva - Business Promotion. All rights reserved.