Thursday, February 13, 2014


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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