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Tuesday 26 August 2014

GPA FOR PROPERTY TRANSACTIONS

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Power of attorney is one in every of the documents that is being executed most extensively bearing on the transactions involving transfer of properties, regardless of modes of conveyance. the most reason being inability of the person, either the transferee or the transferred to be gift at completely different place at a similar time. So as to complete such transactions, in their absence, GPA is executed; authorizing another person to try and do acts or sure acts on his/her behalf. Such associate instrument empowering a such that person to perform such act in his absence is termed as General Power of attorney, as envisaged within the Power of attorney Act 1882.

The instrument of Power of attorney is predicated on the conception of Law of Agency, whereby the Principal, i.e., the one that executes GPA, authorizes Agent, that is, the person in whose favor such Power of attorney is executed, to try and do all such necessary acts per the ability of attorney on his behalf and additional ratifies such acts of the Agent and also the said conception has been recognized underneath the statute thereby giving legal quality.


Competency of the Parties:
The following are the necessary necessities before executing Power of Attorney:
Majors: it's necessary that each the Principal and also the Agent should have earned the age of majority as a result of contract entered between 2 parties, wherein, either of the one may be a minor, isn't recognized under Law. Hence, it's important that each the parties ought to be higher than 18 years aged.

Sound Mind: it's conjointly necessary that each the Principal and also the Agent should be of the sound mind since the contract with the person of unsound mind doesn't bind the parties to such a contract.

Types of Power of Attorney:
•GPA: GPA provides wide power to the agent to try and do numerous acts on behalf of the Principal, with none specifications.

•Special Power of attorney: Special Power of professional is dead in those cases whereby the agent is authorized to try and do such acts per such Power of Attorney. during this reasonably Power of professional, the ability given to the agent are going to be revoked as presently as that individual act that the ability of attorney is executed, is performed associated once such an act is completed, Power of attorney doesn't live. 

Sub-delegation of power:
The general principal is that associate agent will neither sub-delegate his powers to a Sub-agent nor will appoint another power of professional. The said principle is well expressed in Latin maxim “Delegate non protest delegate”, which implies someone who is delegated with sure powers cannot delegate such powers to a 3rd person. But, section one hundred ninety of the Indian Contract Act provides sure exceptions, whereby the agent will appoint sub-agent. However, such sub-delegation should be done in connivance with the Principal, who needs to formalize all the acts done by the agent on his behalf. the subsequent are the circumstances underneath that Sub-delegation is permitted:

•The nature, custom of the trade is such it needs the appointment of sub-agents.
•The recitals in such power of attorney authorize the agent to sub-delegate his powers to a different agent.

Registration and Notarization:
Under Section seventeen of the Registration Act, if any group action involves transfer, assignment, creation of right, title, interest over the stabile property and also the price of such property is Rs.100 or additional, then registration of such documents is necessary. 

As regards execution of GPA, if principle assigns right, title and interest over the stabile property in favor of the agent and authorizes the agent to execute any document on his behalf, in such case registration of the ability of attorney is preferred. However, if the agent is delegated with the powers that don’t involve any reasonably assignment or transfer of interest over the stabile property, then power of attorney notarized before official or perhaps before the adjudicator, is taken into account to be authenticate documents.

Thus for instance, if someone executes Power of attorney, authorizing the ability of professional Holder to execute sale deed on his behalf before the right registering officer, then it's better to urge such power of attorney registered. On the opposite hand, if Power of professional is dead, authorizing the ability of professional holder to prosecute or defend the suit, then criterion is often notarized before official. However, the Court shall presume that an influence of attorney executed before and attested by official or Court, Judge, Magistrate, Indian consul, Vice-consul ,Representative of the Central Government was therefore dead and attested. If the ability of professional isn't signed and sealed as required under law, it's nothing over a paper.

In either of the case, every page of the document, whether or not registered or notarized, needs to bear official stamp of the Sub-Registrar workplace or official and should disclose the number, Book variety and signature of the Sub-Registrar or notary. If a similar is notarized, then, with the exception of the higher than, acceptable functionary Stamp needs to be mounted.


Outside India: Section eighty five of the Indian proof Act applies equally to documents attested by Notaries Public of different countries. However, a similar needs to be done by the selected Officers. Therefore any power of professional dead outside India shall be attested by notary of such country or Indian Consul/Embassy.

Stamp Duty: Power of professional, dead and notarized in any country in favor of Power of professional Holder, residing in India, needs to be punctually sealed among four months from the date of receipt of a similar and also the stamp tax in such case needs to be at the District Registrar’s workplace. However, if a similar is dead in India, similar needs to be executed on the document sheet, punctually sealed. stamp duty in either of the case are going to be Rs.100- if a similar is executed in favor of one to five of them and if power of attorney is given to over five persons, then the particular stamp tax collectible is Rs.200/-.

Cancellation of G.P.A: Power of attorney is often off by either of the parties to the aforementioned contract. However, a similar needs to be done by giving correct notice to the opposite, clearly mentioning the intention of the person to revoke the said Power of attorney and see to it result needs to run to the general public. However, the Principal cannot cancel the agency once the agent exercises his powers part. If the ability of attorney is given just for the particular purpose which purpose is fulfilled or if either of them dies or becomes unsound, then such associate instrument mechanically gets off. If the agent himself has any interest within the property that is that the material of the agency, then a similar cannot be off unless the agent agrees.

Representation of Owner: In Bangalore, there are a unit several instances whereby it's seen that the ability of attorney Holder, in his individual capability, representing himself because the owner rather than the particular owner can convey stabile property, that act doesn't confer any reasonably right over the purchasers since the document itself is void and not binding on the parties. Therefore it's important to verify on whether or not the conveyance has been created by the criterion Holder, punctually representing his Principal/Owner.

In the recent times, with the growing boom of land in Bangalore, the instrument of General Power of professional is taking part in a major role, not only in reference to sale or purchase of the property, however conjointly all told different connected fields. However, abundant caution needs to be taken at the time of executing Power of attorney and also cancellation of a similar as a result of a similar may be used as a weapon involving acts of fraud or conspiracy to misguide and cheat public.

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