What is a Power of Attorney?
A Power of Attorney (POA) is a legal document that authorises a designated individual to act on behalf of another person in various matters. In real estate, a POA is particularly significant, as it enables individuals to appoint trusted agents to manage their property affairs.
This article provides a comprehensive overview of the Power of Attorney (POA) for Property Deals in Tamil Nadu, covering its types, registration process, legal implications, rules for NRIs and OCI cardholders, and the impact of recent Supreme Court judgements
Types of Power of Attorney
Power of Attorney can be broadly categorised into two types:
- General Power of Attorney: Grants the agent broad authority to make decisions regarding the principalโs property, including negotiating, selling, mortgaging, entering into contracts, and applying for approvals with government agencies.
- Special Power of Attorney: Limited to specific purposes outlined in the POA document. The agentโs authority is restricted to the specified tasks.
The agent must exercise their authority within the defined scope and limitations set out in the POA document. All transactions carried out by the agent within their authorised powers are considered valid and legally binding on the principal.
Power of Attorney (POA) for Property Deals in Tamil Nadu
When a person is unable to manage their property due to being away, residing abroad, or owing to illness or old age, appointing a reliable individual as their POA becomes essential. The appointed person may be a relative, an acquaintance, or even a lawyer. Generally, granting a POA does not involve monetary consideration, except in cases of joint ventures where property development and sales by a promoter are involved.
Registration of Power of Attorney (POA) for Property Deals in Tamil Nadu
To register a Power of Attorney (POA) for Property Deals in Tamil Nadu), it should be presented at the Sub-Registrarโs Office (SRO) located within the jurisdiction 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:
- For a POA without consideration: Stamp duty is โน100 and the registration fee is โน10,000.
- For a POA given for consideration: Stamp duty is 4% of the consideration amount, and the registration fee is 1% of the consideration amount.
In Tamil Nadu, since 1 December 2012, all POA documents must be registered. Cancellation of a POA must also be registered, and can only be effected through a Deed of Cancellation at the relevant Registration Office.
Validity and Revocation of Power of Attorney
The validity of a Power of Attorney depends on several factors. It may be valid for a specified period, for the lifetime of the principal or agent, or until it is revoked by the principal.
A general POA can be revoked by the principal at any time without prior notice to the agent, as per a circular issued by the Registration Department and upheld by the Madras High Court. However, a POA given for consideration, such as when a property owner gives a POA to a developer to sell their land, cannot be revoked without the agentโs 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 mismanaged the property. In such cases, the principal can issue a revocation notice to the agent.
Buyers can check the status of a POA from the encumbrance certificate, which shows all encumbrances on a property, including any registered POAs.
Life Certificate Requirement
In Tamil Nadu, a Life Certificate of the principal is required to confirm that the principal is alive. POA holders must submit proof to the Sub-Registrar, which can be issued by a registered medical practitioner or a gazetted officer. These certificates are valid for 30 days only, and the rule applies to all POAs registered since 4 February 2013. By law, a POA becomes invalid once the principal dies.
However, a Life Certificate is not needed for UDS registrations or for registration of plots after promotion. The Tamil Nadu Real Estate Regulatory Authority (TNRERA) has ruled that a Life Certificate is not required to execute a deed if a POA has been given, citing a Madras High Court judgement. TNRERA considers the POA itself as proof that the principal is alive. Additionally, TNRERA is concerned that requiring promoters to approach the landowner each time a plot or flat is sold could lead to demands that may not be in the best interests of the promotion.
Unregistered Power of Attorney (POA) for Property Deals in Tamil Nadu Executed Outside India
The Registration Department has 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, documents presented for registration in India, based on such an unregistered POA executed abroad, can be accepted if properly attested.
The Supreme Court has also affirmed this position in its judgement in Suraj Lamp & Industries Pvt. Ltd. v. State of Haryana (2011).
Supreme Court Judgments on Power of Attorney (2011 onwards)
Over the past decade, the Supreme Court has delivered several important judgements clarifying the legal position of Power of Attorney (POA) in property transactions:
A POA is not a valid instrument for transferring ownership of immovable property. Even if accompanied by an agreement to sell and a will, such a combination does not confer legal title to the buyer. This principle was firmly established in the landmark case of Suraj Lamp & Industries Pvt. Ltd. v. State of Haryana (2011), and reiterated in Ramesh Chand (D) through LRs v. Suresh Chand (2012). These rulings were prompted by the misuse of POAs to avoid stamp duty and capital gains tax, and the Court made it clear that only a registered sale deed can transfer ownership.
The authority to sell property must be expressly stated in the POA; there is no implied authority to sell unless it is clearly mentioned. This was emphasised in Umadevi Nambiar v. Thamarasseri Roman Catholic Diocese (2022), where the Court also reaffirmed the legal maxim โnemo dat quod non habetโ (no one can transfer a better title than they possess).
A POA can be revoked either expressly or by implication. If the principal acts independently in a manner inconsistent with the POA, it may amount to implied revocation, and any sale by the agent after such revocation is void. This was clarified in Thankamma George v. Lilly Thomas & Another (2023), where the Court also referred to the relevant sections of the Indian Contract Act governing revocation.
A POA is not a title deed, and property transfer requires a registered sale deed under the Registration Act. This position was reaffirmed in Ghanshyam v. Yogendra Rathi (2023), closing loopholes in real estate transactions that attempted to use POAs as substitutes for proper conveyance.
A POA holder must always act in the best interests of the principal. Any action by the POA holder that is contrary to the principalโs interests can render the transaction invalid. This fiduciary duty was highlighted in Vinod Singh v. Renu Malhotra (2024).
Simply labelling a POA as โirrevocableโ does not make it so in law. The irrevocability of a POA must be supported by genuine interest and proper documentation, and statutory provisions for revocation continue to apply. This was clarified in M.S. Ananthamurthy v. J. Manjula (2025).
For property transactions based on a POA, authentication under the Registration Act is mandatory. The POA holder must present an authenticated document for registration, as stressed in G. Kalawathi Bai v. G. Shashikala (2025).
In summary:
- A POA cannot be used to transfer ownership of immovable property; only a registered sale deed is legally valid for this purpose.
- POAs are valid for management, representation, and execution of documents, but not for transferring title.
- The authority to sell must be expressly stated in the POA.
- Revocation of a POA can be express or implied.
- POA holders have a fiduciary duty to act in the principalโs best interests.
- Registration and proper authentication of POAs are essential for property transactions.
POA Rules for NRIs and OCI card holders
Non-Resident Indians (NRIs) and Overseas Citizen of India (OCI) card holders can grant a Power of Attorney (POA) to a person in India to buy, sell, or manage their property.
- NRIs are Indian citizens who reside 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 may issue a special POA for the purchase or sale of a specific property. This special POA will expire once the transaction is completed. They can also grant a general POA for the management or acquisition of multiple properties, which remains in effect until revoked by the principal. It is important to note that OCI card holders are not permitted to purchase agricultural properties in India.
If an NRI or OCI card holder wishes to sell a property, the details of the property should be clearly mentioned in the POA document.
How to Give POA from Abroad
To grant a POA from abroad, follow these steps:
- Prepare the POA: You may use a model POA from the Tamil Nadu Registration Departmentโs website (REGINET), but it is advisable to have the document drafted by a lawyer. Prepare two copies on plain paper.
- Attestation by the Indian Embassy: Schedule an appointment with the Indian Embassy. Bring your passport-size photograph, identity and address proofs, and two witnesses. The Embassy will attest the POA.
- Send the Attested Copies to India: Forward the attested POA documents to your power agent in India.
- Adjudication at the Sub-Registrarโs Office (SRO): The power agent must present the POA at the SRO within three months for adjudication, which is the process of approval by the registrar. The agent will need to pay the applicable charges and submit the original postal cover. Once the fee is paid and the POA is adjudicated, the legal process is complete.
After these steps, the power agent is authorised to execute documents on your behalf.
Other Points to Remember
- A company, partnership firm, or LLP can be appointed as a POA holder.
- A power agent cannot appoint a sub-agent for the registration of documents; such documents will not be accepted for registration.
Final words
A Power of Attorney (POA) is a valuable tool for managing property, conducting transactions, or executing legal documents related to property. When appointing a POA, it is essential to choose someone trustworthy and knowledgeable about real estate matters. To ensure the POA is valid and enforceable, it is always best to have it drafted by a qualified lawyer and to comply with all legal requirements, including registration and proper use.
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