Last Updated on 3 months by ChennaiRealties

What is a Power of Attorney?

A Power of Attorney (POA) is a legal document that grants designated individuals the authority to act on behalf of someone else in various matters. In the realm of real estate, POA holds immense significance, allowing individuals to appoint trusted agents to manage their property affairs.

This article provides an overview of the Power of Attorney in real estate, including its types, registration process, legal implications, and its relevance for NRIs and OCI cardholders. By understanding the potential of POA in real estate transactions, individuals can navigate property matters more effectively.

Power of Attorney in Real Estate

When a person is unable to maintain the property due to being away, residing abroad, or being sick and old, appointing a reliable individual as their POA becomes essential. This appointed person can be a relative, known acquaintance, or even a lawyer. Generally, granting POA does not involve monetary consideration, except in cases of Joint Ventures where property development and sales by a promoter are involved. We will delve deeper into this aspect later in the article..

Types of Power of Attorney

Types of Power of Attorney can be broadly categorized into two: general power of attorney and special power of attorney.

In a general power of attorney, the agent is granted broad authority to make decisions regarding the principal’s property. This includes the ability to negotiate, sell, mortgage, enter into contracts, and apply for approvals with government agencies, among other actions.

On the other hand, a special power of attorney is limited to specific purposes outlined in the POA document. The agent’s authority is restricted to these specified tasks.

The agent is empowered by the POA document and must exercise their authority within the defined scope and limitations. All transactions carried out by the agent within their authorized powers, as stated in the POA, are considered valid and legally binding on the principal.

Where and how to register the Power of Attorney?

To register a Power of Attorney (POA), it should be presented at the Sub-Registrar’s Office (SRO) located within the jurisdictional area where the property, either in whole or in part, is situated. Alternatively, it can be registered at the SRO where the principal resides.

The fees for registering a POA vary depending on whether it is given for consideration. For a non-consideration POA, the Stamp Duty is ₹100/- and the Registration fee is ₹10,000/-. However, if the POA is given for consideration, the Stamp Duty payable is 4% of the consideration amount, and the Registration Fee is 1% of the consideration amount.

Validity of Power of Attorney

The validity of a Power of Attorney (POA) depends on several factors. It can be valid for a specified period, the lifetime of the principal or agent, or until it is revoked by the principal.

In Tamil Nadu, all POA documents must be registered after 1.12.2012. Cancellation of a POA must also be registered. A POA can only be cancelled through a Deed of Cancellation in the concerned Registration Office.

The Registration Department clarified that a Power of Attorney relating to immovable property executed outside India does not require compulsory registration. However, it must be attested by the Consulate Office. Consequently, further documents presented (based on such an unregistered power of attorney executed outside India) can be accepted for registration.

Life Certificate

In Tamil Nadu, a Life Certificate of the principal is insisted upon to ensure that the principal is alive.

POA holders should submit proof to the sub-registrar that the principal is alive. For this, a registered medical practitioner or gazetted officer can issue a life certificate. 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.  

No Life Certificate needed for UDS registrations or for registration of plots after promotion

However, the Tamil Nadu Real Estate Regulatory Authority (TNRERA) has ruled that a life certificate is not required to execute a deed if a power of attorney (POA) has been given. The TNRERA cited the Madras High Court Judgment in support of this ruling. The TNRERA believes that the POA itself is proof that the principal is alive. Additionally, the TNRERA is concerned that if promoters are required to approach the land owner each time a plot or flat is sold, the land owner may start making demands that may not be in the best interests of the promotion.

Revoking a Power of Attorney

A general POA can be revoked by the principal at any time without prior notice to the agent. This is according to a circular issued by the registration department and upheld by the Madras High Court.

However, a POA that is given for consideration, such as when a property owner gives a POA to a developer to sell their land, cannot be revoked without the agent’s consent. This is because the agent has an interest in the property and the POA cannot be revoked arbitrarily.

The principal can revoke a POA if the agent has breached the terms of the POA, acted beyond their authority, or has mismanaged the property. In these cases, the principal can issue a revocation notice to the agent.

The status of a POA can be checked by buyers from the encumbrance certificate. This certificate shows all encumbrances on a property, including any POAs that have been registered.

2011 Supreme Court Judgment

In 2011, the Supreme Court held that a POA is not a valid instrument of transfer of property and that such transactions will not give ownership title to the buyer.

The court’s ruling was made in response to a growing trend of people using POAs to avoid paying stamp duty and capital gains tax on property sales. The court said that the use of POAs for this purpose was “misusing” the power of attorney and that it would not be tolerated.

The court’s ruling does not mean that all transactions involving POAs are invalid. The court said that POAs can be used for genuine purposes, such as managing someone’s affairs or executing a deed of conveyance.

The court’s ruling is a significant development in the law of property sales. It will make it more difficult for people to avoid paying stamp duty and capital gains tax on property sales. It will also make it more difficult for people to sell property without the owner’s consent.

Here are some key takeaways from the Supreme Court’s ruling:

  • A general POA holder can act on behalf of the principal to facilitate the transfer of property but cannot claim ownership of the property.
  • Or, transactions involving POAs that are used to avoid paying stamp duty or capital gains tax will be invalid.
  • POAs can be used for genuine purposes, such as managing someone’s affairs or executing a deed of conveyance.

POA Rules for NRIs and OCI card holders

Non-Resident Indians (NRIs) and Overseas Citizen of India (OCI) card holders can give a power of attorney (POA) to a person in India to buy, sell, or manage their property.

  • NRIs are Indian citizens who live outside India for more than 183 days in a year.
  • OCI card holders are persons of Indian origin who are citizens of another country.

NRIs and OCI card holders can give a special POA to a person in India for the purpose of buying a specific property. The special POA will expire once the property is bought or sold.

NRIs and OCI card holders can also give a general POA to a person in India for the purpose of buying or maintaining multiple properties. The general POA will remain in effect until it is revoked by the principal. OCI card holders cannot buy agricultural properties in India

If an NRI or OCI cardholder wants to sell a property, the details of the property should be mentioned in the POA.

How to Give POA from Abroad

To give a POA from abroad, you will need to follow these steps:

  1. Prepare the POA. You can use a model POA from the Tamil Nadu Registration Department’s website, REGINET. However, it is advisable to have the POA drafted by a lawyer. Take two copies of the POA in plain paper.
  2. Have the POA attested by the Indian Embassy. You will need to make an appointment with the Indian Embassy in your country. You will need to bring your passport-size photo, identity and address proofs, and two witnesses. The Embassy will attest the POA.
  3. Send the attested copies to the power agent in India.
  4. The power agent should take the POA to the Sub-Registrar’s Office (SRO) within three months and get it adjudicated. Adjudication is the process by which the POA is approved by the registrar. The power agent will need to pay the applicable charges at the SRO. The original postal cover should also be taken to the SRO. After paying the fee at the SRO, the legal process for the POA is complete.

The power agent can now execute any document

Other Points to Remember

A company, partnership firm, or LLP can be appointed as POA.

A power agent cannot appoint a sub-agent for the registration of documents. Consequently, such documents will not be accepted for registration.

Final words

In conclusion, a power of attorney (POA) is a powerful tool that can be used to manage property, buy or sell property, or execute other legal documents related to property. When choosing a POA, it is important to select someone you trust who is knowledgeable about real estate matters. To ensure that the POA is valid and enforceable, it should be drafted by an attorney.


Disclaimer: The information contained in this article is for educational and informational purposes only. It is not intended to be legal or financial advice. Readers are advised to do their own independent research and consult with professionals before making any decisions based on the information in this article-Edit

Also read: The Encumbrance Certificate 


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43 responses to “Power of Attorney (POA) Rules for Land Deals in Tamilnadu”

  1. Hasan A cader avatar
    Hasan A cader

    I have one GPA document having 2 different schedule properties.
    I wanted to cancel only one schedule of property from that GPA.
    Is it possible to do.

  2. Lakshmi avatar
    Lakshmi

    Is a Property schedule required for a GENERAL power of attorney ? Especially when that property is in a different state & the principal cannot travel due to health condition ?
    The PoA is being given by Principal to their daughter for selling the said property.

  3. MADHAN avatar

    என்னிடம் பதிவு செய்ய
    பத்திரம் உள்ளது ஆனால் பட்டா இல்லை என் இடத்தில் ஒருவர் வீடு கட்டிவிட்டார் என் நிலத்தை எப்படி பெறுவது

  4. Subramanian N avatar
    Subramanian N

    My wife has become one of the joint owners of a property in Trichy by virtue of demise of her parents. All the joint owners want to sell the property. As she is currently unwell and shall not be able to travel from Pune, Can POA be executed at Pune in favour of her brother (another joint owner). Please advise.

    1. Penukonda Suresh avatar
      Penukonda Suresh

      Yes. she can appoint POA, within her residence jurisdiction.

    2. T.R.Daveson avatar
      T.R.Daveson

      Yes. A General or Specific/ Special Power of Attorney can be given. General power embrace all powers, while Special Power to present an instrument must be signed in the presence of Sub Registrar within the territorial jurisdiction of the Principal/ Executant , also on the instrument signed by her and the special power will enable the agent to present.

  5. Sethuramanujam avatar
    Sethuramanujam

    Can a landlord rectify a sale deed executed by his power agent with out canceling his power ?

  6. N Mohan avatar

    Our joint venture builder had sold at least three UDSes of the land property and
    the corresponding flat construction agreements to his sundry creditors without the value addition seen in the construction of the property. He argues that he is entitled to do this upon signing the Joint Development Agreement and GPA from the date it is registered. What is the legal stand on this argument? Can this be challenged?

  7. baseer avatar
    baseer

    Sir if the power attorney person dead what happens

    1. Penukonda Suresh avatar
      Penukonda Suresh

      Power also dies.Likewise Principal dies POA also becomes infractions.

  8. r pristine avatar
    r pristine

    In Tamilnd, is it enough to only notorise GPA for selling land? Regards.

    1. Adv Sankaran avatar
      Adv Sankaran

      No. Registration mandatory.

    2. CLN avatar
      CLN

      Any legal document including POA to be registered with the Sub Registrar OFFICE. Then only it is Valid.

    3. Shameer avatar
      Shameer

      No power has to be registered in the concerned sro

  9. Rajasekar avatar
    Rajasekar

    In Encumburance Certificate, will the current Power Of Attorney will be visible?

  10. K.Manoharan avatar
    K.Manoharan

    Can the mistakes in land measurement be rectified in the power patta,by issuing life certificate from a doctor, by the power giver??

  11. Dhayanidhi avatar
    Dhayanidhi

    I’m in Chennai . Ancestral property located near maduravayol .On 2007 power agent was appointed by me with my 3 sisters without any consideration For our shares .my brother’s made partition deed using POA without our knowledge .just we came to know about partition deed .can I challange against this .power agent died recently 4 months before

  12. S.Natarajan avatar
    S.Natarajan

    It is not clear whether an NRI can get a release deed for his share in a common property be executed through a special ower of attorney made abroad and duly adjudicated here

  13. VigneSh avatar
    VigneSh

    I have a land near Madurai. My father registered it in kerala 20years back. Is it valid to re-register in my hometown.

    Also can you share the G.O which states that such registrations are valid

  14. Prabhakaran avatar
    Prabhakaran

    I m a power agent, I want to cancel the power without my principal. What is the procedure.

  15. alagirikannan avatar

    1996-ஆம் வருடம் வழங்கப்பட்ட பவர் ஆஃப் அட்டர்னி பத்திரத்தை வைத்து 2010 இல் ஒரு விற்பனை நடத்தினால் அது செல்லுமா?மேலும் அது ஒரு மதர் கார்டினால் வழங்கப்பட்ட பவர் ஆஃப் அட்டர்னி பத்திரமாகவும் அந்த தாய்க்கு மூன்று மைனர் குழந்தைகள் இருக்கும் பட்சத்தில் 2010-இல் அந்த மைனர் குழந்தைகள் மேஜர் ஆகிவிட்டனர் அப்போது அந்த மைனர் குழந்தைகளுக்கு தெரியப்படுத்தாமல் அவர்களது ஒப்புதலும் இல்லாமல் 2010-இல் அந்த பவர் ஆஃப் அட்டர்னி வாங்கிய நபர் ஒரு விற்பனை செய்கிறார் அந்த விற்பனை செல்லுமா அதை எதிர்த்து நீதிமன்றம் செல்லலாமா?

  16. Aman avatar

    If I grant Power of Attorney to an agent, will my own rights to manage affairs cease?

    1. SC avatar

      No and you can revoke your power of attorney at any time, unless it is irrevocable and your agent has some interest in it.

  17. B Thulasiraman avatar
    B Thulasiraman

    Whether power of attorney document eligible to get solvency

  18. Santosh Bothello avatar
    Santosh Bothello

    Can a NRI sell a land property in Ooty through a GPA attested at the overseas Indian embassy and the courts in TN and get it registered at the Ooty sub registrar’s office prior to selling.

  19. Subramanian VISHWANATHAN avatar

    Validity of general power of attorney as well as without other state permission or NOC can be registered the documents ?

  20. Ravichandan Vanchinathan avatar
    Ravichandan Vanchinathan

    In Tamilnadu, the special power of attorney is valid for 120 days.Due to Covid out break the PoA couldn’t be used within the limited period 120 days. Is there any grace period beyond the 120 days ? If so how long? Is there any notification/circular by the registration department?

    1. Sivaprakash avatar
      Sivaprakash

      Isn’t the power of attorney valid till the sale of the principal?

  21. Anand Kumar avatar
    Anand Kumar

    After giving a GPA to an agent to sell a property, can I legally sell the same property myself without cancelling the GPA?

  22. Kamaly avatar
    Kamaly

    What to do if principal dies .. how to proceed further and how to save the land or money investment in it

  23. Peer Mohamed avatar
    Peer Mohamed

    The supreme court judgment tiltled “No Transfer of Title Deed through PoA” is scary as I understand that many have purchased properties using PoAs through non-relates. If so, the concerned sub-registrars should implement the rule as we, as common people, do not know all the rules and especially the latest rules which are genuinely introduced by the govt to avoid fraudulence and tax evasion.

    1. sowrirajan pathravi avatar

      THE REAL ESTATE AGENTS PREPARES IRREVOCABLE POWER OF ATTORNEY WHERE HE WOULD HAVE GIVEN THE PURCHASE PRICE BUT YET ACTING AS AGENT. A PERSON CANNOT PLAY TWO ROLES. BUYER AND AGENT CANNOT BE SAME PERSON. WHAT THIS REAL ESTATE FELLOWS DO THEY PAY THE PROPERTY PRICE AND SIMULTANEOUSLY ACT AS AGENT. IN THE POWER THEY MENTIONED THAT PROPERTY SHOULD BE CONVEYED TO HIM OR A PERSON TO WHOM ASSIGNING THE RIGHTS. THE OWNER OF THE PROPERTY COMES AND SIGNS THE DEED.THE OWNER ALREADY TAKEN THE SALE MONEY FROM THE AGENT. NOW THE AGENT TAKES THE MARKET VALUE MONEY IN BLACK. THEREBY EVADING CAPITAL GAIN TAX AND STAMP DUTY. IT IS ALL HAPPENS WITH THE CONSENT OF THE REGISTRAR WHO TAKES BRIBE. REGARDS SOWRIRAJAN ADVOCATE CHENNAI

  24. Bala avatar
    Bala

    Have given POA in the year of 2011 and the same rule is applicable for that POA

  25. Biswadeep Sarkar avatar
    Biswadeep Sarkar

    Sir, I am a non resident of Chennai, belong to Jamshedpur. We have an undivided in west Bengal – Siliguri, which needs to be sold. There are 7 holders of the subject property. I want to award a power of attorney to one of my relatives in Siliguri. Kindly guide of the procedure, fees and the timelines.

    1. Biswadeep Sarkar avatar
      Biswadeep Sarkar

      The PA has to be done from Chennai.

  26. Shameem avatar
    Shameem

    Any formet for cancellation of registered Power of Attorney due to schedule mistake

  27. Shameem avatar
    Shameem

    In power of attorney the schedule of property goes wrong.It is registered in Registrar office. I want to have fresh POA.Is it necessary to cancel the previous Registered POA? Would you please reply me?My mail id is shameemraheem@gmail.com

    1. ChennaiRealties avatar

      Thanks Shameem. We do not have the expertise to advise on such specific queries. The article is meant for giving a general idea of the issues concerned. As far as we know, atleast 3 Laws are involved in the legal matters concerning Power of Attorney. 1)Indian Contract Act 2)Power of Attorney Act and 3)Registration act. Therefore, it is better to approach a professional lawyer. Also there are online legal forums like Kanoon, where lawyers may be available to clarify on such individual and specific issues. Thanks.

  28. karthick avatar
    karthick

    Hi sir,
    Could you send sample draft for general power of attorney format for registration. i apply home loan in bank for construct new house.

    1. ChennaiRealties avatar

      Hi Karthick, The draft general power of attorney is available in Reginet website.Go to REGINETHome>Scroll down to the bottom to Downloads> click Utility Forms. Many forms are available in the page that opens

      1. kumar avatar
        kumar

        Do we need to send the POA only through postal service? Or can we send through courier?

    2. Ganesh Mahadevan avatar
      Ganesh Mahadevan

      karthick. My daughter is in San Diego, USA and I as her POA holder had to obtain a life certificate from her to undertake a land deal in Tamil Nadu.
      While the form does not indicate the need for Consular or Notary attestation, Embassy of India Washington rules explicitly say the need for Consulate attestation.
      It was in the midst of COVID and going to San Francisco ws ruled out. Finding a Doctor with a rubber stamp and who would provide this service was equally difficult.
      My daughter luckily found an Indian Doctor in her University who agreed to do the needful. My daughter added a rubber stamp impression using photoshop.
      Tis certificate was mailed by my daughter straight to the sub-registrar at vanur. It worked.

      The format is at this link:-

      http://itestweb.in/pdy30/sites/default/files/life_certificate_format.pdf

      With Regards

      Vice Admiral Ganesh Mahadevan
      Bangalore

  29. ROY Daly avatar
    ROY Daly

    SAMPLE DRAFT OF THE LIFE CERTIFICATE IN CASE THE PRINCIPAL CANNOT ATTEND TO THE REGISTRATION SHOULD BE SHOWN / INDICTED FOR DOWNLOADING. SHOULD THIS CERTIFICATE BE SIGNED BY THE NOTARY PUBLIC OF THAT COUNTRY AND ALSO BY THE INDIAN CONSULATE.

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