Property buyers
need to be careful before and after registration of property to avoid
unnecessary hassles in the future.
Purchase of immovable property comprises various steps, broadly
categorized as pre-registration and post-registration activities. Postregistration activities are subsequent to the registration of Sale Deed.
1. Obtain original documents of title from
the seller and compare them with the copies, which the purchaser’s advocateshould have scrutinized. If the advocate calls for other original documents or
certified copies, ensure he gets such documents. It is always advisable to
apply for additional copies of the Sale Deed.
2. Register the application for updated
encumbrance certificate with the sub-registrar office on the day of
registration itself. Such Encumbrance Certificate should contain the
registration details of purchaser’s Sale Deed.
3. The possession of the property is of
vital importance. Inspect the property a
day before registration. Make sure that
the property is as per the agreement to sell. As per the terms of the
agreement, the seller should hand over the vacant possession and the purchaser
should receive all the keys of the property at the time of registration.
In case of vacant sites, please put up a display board with the
wordings. “This property is owned by Trespassers will be
prosecuted”. Fencing of such sites,
though expensive, is preferable.
Periodical visits to the site are a must to detect encroachment. The purchaser should verify that all the taxes, statutory payments in
respect of the property including power and water charges are paid up-to-date.
He must collect all
the paid receipts and also verify at the concerned offices. Power and water supply
agencies collect deposits from the consumers. Purchaser should collect such
deposit receipts from the seller. After registration of the sale deed, the purchaser must ensure that the
Khata in the records of the local bodies, Gram Panchayats or the City
Corporation is transferred to his name.
Both the seller and purchaser have to sign the application for transfer
of Khata, which should be done simultaneously while signing the sale deed. This is necessary to avoid any disputes and
complications at a later date. Duly filled in Transfer of Khata application
with a copy of the sale deed is to be filed with the Gram Panchayat / City
Municipal Office against acknowledgement.
Local bodies transfer the Khata in the name of the purchaser on
collecting a transfer fee, generally 2 percent, on the stamp duty paid on Sale
Deed and issue written confirmation of transfer in the name of the purchaser.
While transferring the Khata. Local
bodies, usually reassess the property and issue assessment notice in the name of
the purchaser. The tax paid receipt should be in the name of the owner.
After the Municipal authorities transfer the Khata to the purchaser,
the water meter and the power meter installed are required to be transferred.
Verify the deposit and charges paid receipts carefully, which should be in the
name of the seller. Obtain a letter from the seller addressed to the respective
authorities to transfer the meters, including the deposits paid in the name of
the purchaser.
The purchaser should, without delay, apply too the power/water supply
authorities to transfer the meters and the deposits in his name. The original
authorization letter of the seller and a copy of the new Khata (in the name of
the purchaser) are to be enclosed with the application of transfer. The
authorities will issue written confirmation of transfer and raise bills in the
name of the purchaser. Obtain periodical Encumbrance Certificates at least once a year, which
should be a routine exercise.
Power of Attorney
means the power or authority given to a person (agent) by an individual
(principal) to act on his behalf or on behalf of a group of individuals in
business matters or any other matter.
It plays a vital role in transferring the lawful ownership of immovable
property like land, building, and water source, from one person to another. The
person who holds the power is called the Power of Attorney Holder. He isemployed by the principal to take care of his dealings with third persons.
A person competent to contract can execute a Power of Attorney. He can appoint one person or several persons
to act on his behalf. Where several persons are appointed as attorneys, it is
advisable to mention as to how they will act – jointly or independently. If
this is not mentioned, then they are at liberty to act jointly.
Power of Attorney, generally speaking, is of two types. Power of Attorney for a single specific
purpose is known as “Special Power of Attorney” and the one involving more than
one work or transaction is called “General Power of Attorney”.
The duration of special power of attorney may be for a particular
period or for an indefinite period until the task is completed.A General Power of Attorney may continue to be in force until it is
revoked or by death of either party. A registered Power of Attorney can be
revoked by a Cancellation Deed.
Though, in general, a Power of Attorney is revocable, it cannot be done
so in matters pertaining to debt security till the debt is cleared even though
the debtor is not alive. It can be revoked if the principal becomes of unsound
mind or he is declared insolvent. It cannot be revoked if it is made
irrevocable. However it should be registered by paying applicable stamp duty.
Power of Attorney attracts various provisions of The India Stamp Act, Powers of
Attorney Act, Registration Act, The Indian Contract Act, and Indian partnership
Act, and the Indian Evidence Act.
A Power of Attorney is divided into ten categories according to the
stamp duty payable. A Special Power of
Attorney is given for a court case, for appointing one attorney in place of
another, for collection of debts and for admitting execution and a General
Power of Attorney is given for selling shares, to execute a Sale Deed, to
prepare a layout and sell plots, to raise money through mortgage of property,
to recover rents and many other acts.
A Power of Attorney need not be registered except in the case of an
immovable property is involved. According to the Registration Act, if a Power
of Attorney gives power to present documents for registration, then it must be
executed before and authenticated by the Registrar or the Sub-Registrar.
If the Registration Act is not in force at a place where the Executants
lives, then a Magistrate’s authentication is necessary. If the Power of Attorney is registered outside India a Notary Public
and Court Judge, Magistrate of that country, or Indian Consul or Vice-Consul or
a representative of Central Government must authenticate it.
A Power of Attorney is executed in the form of a legal document
generally in the first person and begins either as “Know all men by these
presents that I …….” or “By the power of attorney I ………..or “This Power of
Attorney made and executed o this……………….”
After a brief introduction, the operative part is brought in.
Thereafter, the specific powers given to the person are mentioned in separate
paragraphs. After these a general clause is added empowering the attorney to do
such lawful acts and deeds, as he deems fit and proper in the performance of
his duties.
It is the duty of the agent,
the Power of Attorney holder, to act honestly and faithfully on behalf of his
principal, the giver. He is legally
bound to perform the tasks according to the wishes of the principal. If theagent acts otherwise and the principal suffers any loss, he must compensate the
principal. He is bound to keep all accounts in a proper manner and produce it
to the principal and demand. An agent possessing authority to carry on business
has authority to do every lawful thing necessary for the purpose. Being a legal
document, a Power of Attorney must be strictly interpreted and understood.
Therefore special care must be taken while drafting General Power of Attorney.
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