Power of Attorney (POA) Rules for Property Deals
Power of Attorney authorizes a person to carry out transactions or act legally for another.Life Certificate
The new rules are applicable to all POAs registered since February 4, 2013. By law, POA is not valid once the Principal dies.
Effect of Sales after the Death of the Principal
Many instances have been reported of POA holders selling land after the death of the Principal. Buyers get into trouble when Legal Heirs of the property owner, claim rights over it. Such cases end up in protracted legal battles and ultimately the sale deeds are declared invalid in many cases.
When the POA is rescinded…
All these efforts by the government are to prevent instances of frauds taking place, taking advantage of the loopholes in the POA rules until now prevailing and to stop the revenue loss to the Govt.
Also read the Encumbrance Certificate
By John das