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What is special power of attorney?
Posted: October 25th, 2012, 11:39 am
by plothunter
Friends,
My friend is buying a plot from a builder in Bangalore. As per the sale deed which he got it says builder has executed special power of attorney in favor of a person X who will represent him on the day of registration. As i know from other people buying property under general power of attorney is not good and may have legal problems. Is special power of attorney different from GPA? Is it ok to register through a person having special power of attorney? The bank which is funding the loan is ok with it but i was just curious as i am also looking to buy a plot in the near future.
Thanks
Narendra
Re: What is special power of attorney?
Posted: October 25th, 2012, 2:10 pm
by msn1270
Not much difference between GPA and SPA. GPA means giving blanket permission to a nominee for carrying out anything/everything on that piece of property and in SPA, its very specific to certain activities like selling/purchasing/renting....etc. Legally both holds similar values.
Remember as per supreme court order, Post October 2011, all Property transactions through third party GPA is illegal, unless the GPA holder is having blood relation to the actual owner like Brother/sister/father/mother/son/daughter within a family.
Re: What is special power of attorney?
Posted: October 25th, 2012, 2:21 pm
by plothunter
Thanks for your reply msn. So if the builder has given SPA to his lawyer who works in his company and this lawyer appears for registration on the day of registration on behalf of the builder it is not legal?
Also will the sub registrar office execute such registrations?
Re: What is special power of attorney?
Posted: October 25th, 2012, 2:27 pm
by msn1270
Sub-Registrar office do not validate anything. They just carry out their activity registering the property by collecting the registration + Stamp Duty and their fees. Its the 100% responsibility of the buyer to take necessary precautions before proceeding. Better consult a reliable advocate to get the detailed knowledge/implications post the SC order.
Re: What is special power of attorney?
Posted: October 25th, 2012, 2:28 pm
by plothunter
Thanks very much msn. Your replies are always helpful
Re: What is special power of attorney?
Posted: October 25th, 2012, 9:43 pm
by tvsh
In Certain cases, The Chairman/President/Owner of a company gets special permission from the sub-registrar and designates someone else to register the sites on his/her behalf. Ex: BDA, MUDA, Judicial layout, etc. If this did not happen, then the chairman of the BDA will have to spend all his days at the registrar office signing title deeds. I am not sure if the designation of someone else to represent the chairman happens via a special power of attorney. It is better to consult a lawer or better still get a copy of the Special power of Attorney and read the T and Cs.
Re: What is special power of attorney?
Posted: October 26th, 2012, 1:46 am
by nagsbhat
As far as I am aware, BDA/Society should have already got exemption from Subregistrars from personal appearance. Then on the day of the registration, said society issues a letter (definitely not a GPA/SPA) indicating who will appear on behalf or No one is appearing. It is not a GPA/SPA.
Re: What is special power of attorney?
Posted: October 26th, 2012, 8:09 am
by plothunter
Thanks for the replies. As you guys said the power of attorney(which is also already registered) is only to present the deed in front of the sub registrar and it will actually be signed by the owners. Is there some risk associated with such registration? In the meanwhile my friend is consulting an advocate and I will update his findings here.