Power of Attorney in Real Estate: Rights and Risks

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A Power of Attorney (PoA) is a legal document that lets someone else act on your behalf in property matters—like buying, selling, leasing, or managing real estate.

What Is It?

  • The Principal gives authority to an Attorney (Agent) to act on their behalf

  • Useful when the owner is abroad, unwell, or unavailable

  • Must clearly define the scope of powers to avoid misuse

Types of PoA:

  1. General PoA (GPA)

    • Broad powers: manage, lease, collect rent, pay taxes

    • Not valid for selling property post-Supreme Court ruling (2011)

  2. Special PoA (SPA)

    • Limited to specific tasks: e.g., selling one property

    • Legally stronger and more acceptable for transactions

Do’s:

  • Draft with clear, specific language

  • Register the PoA (mandatory for property-related powers)

  • Use SPA for sale/purchase to avoid legal issues

  • If NRI, get it notarized and attested by Indian consulate

Don’ts:

  • Don’t rely on GPA for property sale—it’s not legally valid

  • Avoid vague or blanket powers

  • Never skip registration or legal vetting

  • Don’t use PoA as a shortcut to bypass proper sale deed execution

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