Selling real estate through a Power of Attorney (POA) has been a common practice in India. However, legal complexities and Supreme Court rulings have changed the landscape of such transactions. While a POA allows an individual to act on behalf of the property owner, it does not grant ownership rights. The 2011 Supreme Court judgment declared that a POA cannot be used to transfer immovable property, emphasizing the need for a legally registered sale deed. In this article, we will explore whether selling property via POA is valid, how POAs work in real estate transactions, and the legal risks involved.

The Supreme Court of India, in its 2011 ruling, clarified that a Power of Attorney cannot replace a sale deed. The judgment aimed to prevent fraudulent transactions and ensure that property dealings are transparent and legally valid. Here's what you need to know:

• A POA does not transfer ownership; it only grants the right to act on behalf of the principal.
• A valid property sale requires a sale deed, duly executed and registered under the Indian Registration Act, 1908.
• Transactions using POAs are often challenged in courts due to the risk of misrepresentation.

Supreme Court Of India

A sale deed is the primary document that transfers ownership of property. It must be:

• Signed by the actual owner of the property or an authorized legal representative.
• Registered with the local Sub-Registrar office under the Registration Act of 1908.
• Accompanied by stamp duty and registration charges as per state laws.

A POA holder may execute a sale deed only if it is specifically authorized by a Special Power of Attorney (SPA), and even then, it must comply with legal guidelines.

Registration Act of 1908

1. General Power of Attorney (GPA):

   • Grants broad authority to manage various legal and financial matters.
   • Not valid for selling property unless backed by legal documentation.

2. Special Power of Attorney (SPA):

   • Grants limited powers for specific actions like selling a particular property.
   • Must be registered and legally recognized.

A GPA alone is not a valid document to sell property under Indian law. However, an SPA may be legally acceptable if properly executed.

Type Of POA

Selling property through a Power of Attorney is largely restricted in India. The 2011 Supreme Court ruling reinforced that property transfers must be done through a registered sale deed. While a Special Power of Attorney (SPA) can authorize specific transactions, a General Power of Attorney (GPA) alone is not valid for selling property. If you are buying or selling real estate, ensure the transaction follows legal guidelines to avoid complications. Always consult a property lawyer to verify the legality of your sale.