Power of Attorney (POA) Rules for Land Deals in Tamilnadu

Power of Attorney (POA) Rules for Property Deals

 
The Tamil Nadu Registration Department has revised the rules of using Power of Attorney (POA) for  Property deals. 

Power of Attorney authorizes a person to carry out transactions or act legally for another.Life Certificate

Under the new rules, a POA holder seeking to carry out a land transaction will have to give documentary evidence to the Sub-registrar to prove that the Principal, the person who issued the POA is alive. The Principal has to get a “live” certificate with his photograph affixed to it from a Registered Medical Practitioner or a Gazetted Officer. These certificates are valid for 30 days only.
 

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

In Tamil Nadu, many of the land transactions were carried out on the basis of POAs. It might be so to  avoid payment of stamp duty and registration fees.

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When the POA is rescinded…

As per law, the Principal also has the right to rescind a POA. The POA holder cannot claim rights over the property once the POA is rescinded or the Principal dies. In 2010-11, more than 3.75 lakh POAs were registered across Tamil Nadu for property-related transactions. The number came down to 1.8 lakh last year 

Last December, it was made mandatory that photographs of the holder and the principal be affixed on the POA. 

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




 

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