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How to Execute a Sale Deed Using Power of Attorney?

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Last Updated on July 9, 2024 by Kanakkupillai

A sale deed is a formal document passing property ownership from the seller to the buyer. Concurrent with this is a power of attorney, a legal document giving an agent legal and financial permission to act on behalf of another person, the principal. When the principal cannot attend the sale due to geographical distance, health issues, or other urgent commitments, knowing how to execute a sale deed via power of attorney can be especially helpful since it allows the principal to transfer their property ownership without being physically present during the transaction. Following the proper steps and ensuring the power of attorney is valid and particular to the sale deed will help ensure a seamless and quick transaction completion.

What is a Power of Attorney?

A power of attorney is a proper paper giving a person—the agent—legal and monetary permission to act on behalf of some other person, the principal. General (extensive power), special/restricted (limited to unique subjects), lasting (remains effective even though the owner will become incapable), and springing (becomes effective upon a said occasion or incapacitation) are the important forms of POA. Essential components of a POA record encompass the agent’s recognition of the position, the principal’s approval of the agent’s powers, and the document’s signing and notarization as per national legal guidelines.

Guidelines for Using Power of Attorney to Execute a Sale Deed

Using power of attorney to perform a sale deed calls for the following:

  • Grants from Principal (Property Owner): The property owner has to give the agent a power of attorney stating the authority to perform the sale deed.
  • Specific Authorization: The power of attorney has to allow the agent to carry out the sale deed directly.
  • Agent and Buyer Appear Before Sub-Registrar: To record the sale transaction, the agent and buyer must appear before the sub-registrar.

The Role of Sub-registrar in Verifying the Power of Attorney:

Verifying a power of attorney (POA) during a sales deal rests much on the sub-registrar. They are in charge of making sure the person chosen by the principal—the property owner—has the particular permission to perform the sale deed. The sub-registrar must carefully review the POA papers to ensure the person has been given the needed power. Should the sub-registrar find any errors or problems with the POA, they have the power to refuse to record the sale contract. Preventing fraudulent deals and protecting the interests of every person involved in the property transfer depends on this verification process. The care of the sub-registrar in this regard helps keep the purity of the property registration system.

Procedures for Executing Sale Deeds Using Power of Attorney

Executing a sale deed through a power of attorney calls for the following actions:

  • The first step is for the property owner to provide an agent POA, permitting the agent to sell the assets on their account. The power of attorney document must be very clear about the agent’s authority and the scope of their strength.
  • Once a POA is in place, the agent and potential buyer have to appear before the government official to record property transactions. This is a critical period as the sub-registrar has to verify the legitimacy of the power of attorney.
  • The sub-registrar will meticulously review the POA documentation to make sure the individual has specific authorization to execute the sale deed. They will also review the record to make sure the agent has been empowered to operate on behalf of the principal in the property purchase.
  • Should the sub-registrar be happy with the legitimacy of the POA, they will document the selling deed. The agent, at this point represents the owner even though the property is legally transferred from the owner to the buyer.

This methodical process guarantees that the sale deed is legally binding. The sub-registrar checks the agent’s permission and protects the interests of all parties involved.

Benefits of Executing Sale Deed through Power of Attorney

Using a power of attorney to execute a sale deed has several benefits:

  • Convenience for the Principal: A power of attorney lets the principal, the property owner, quickly transfer the property ownership without having to attend to the sale deal.
  • Agent Handles the Deal: Power of attorney allows the agent to handle all parts of the sale deal on behalf of the principal, simplifying the process and lessening the burden on the property owner.
  • Efficiency and Speed: As the agent can handle the needed paperwork and papers, executing the sale deed through a power of attorney can be faster and more efficient than when the principal is personally involved.

Limitations and Risk

Although a sale deed completed under power of attorney has several benefits, it also has some dangers and limitations:

  • Trust in the Agent: The principal must totally trust the agent to behave in their best interests during the sales transaction. The principal may suffer significantly from any agent’s lack of trust or abuse of power.
  • Limited Authority: The agent’s authority is just that—that which is stated in the power of attorney form. The agent cannot decide beyond the purview of the POA or surpass the given power.
  • Sub-registrar’s Discretion: Should the sub-registrar find any problems with a power of attorney, they have the authority to reject registering the sale deed. This might result in delays and problems in the property transfer process.

Conclusion

A widely known and practical method allowing property owners to move ownership without being physically present is making a sale deed under power of attorney. But it’s important to make sure a power of attorney is valid and specifically gives the agent the ability to sell the property. The principal must choose a trusted agent who will carefully behave in their best interests. Before filing the sale deed, the sub-registrar is vital in proving the power of attorney and agent authority. Executing a sale deal through a power of attorney can quickly and successfully move property ownership, especially in cases when the principal cannot personally participate in the process.

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