Violations Of Power Of Attorney That You Should Be Quick To Notice

Living in another country with a property in India? Most of you would understand what a power of attorney or POA is. It is a provision that helps you represent yourself even when you are physically absent. A POA is a useful tool, especially when it comes to non-resident Indians, frequent travelers, and old people who cannot keep visiting their places to manage property-related businesses. However, POA abuse is also rampant.

Here's what you must watch out for to guard your interest as the principal owner of a property:

When the 'agent' tweaks his responsibility

You would definitely not want to spoil your relationship with the person who is supposed to represent you in your absence. But, some caution is necessary. For that, you have to understand the difference between a general POA and a special POA.

A special POA is made when a representative is appointed to do a specified act. A general POA is made when the real owner appoints the representative to carry out a range of tasks, as is noted in the agreement. Under no circumstances should your agent tweak his laid-out responsibilities.

Selling through an unregistered General POA

While a property can be sold through a GPOA, it needs to be registered by at the Sub-Registrar's Office. If you see your agent is trying to sell through an unregistered GPOA, act before it is too late. Often unregistered GPOAs are the ones where sellers had tried to evade stamp duty.

Selling despite a nullified POA/in case of death

Make sure you render all POAs null and void after the work is done or if you realise that the agent isn't trustworthy enough to handle it. As the Real Estate Law has now come into effect, such violations would be subject to monetary penalty and a jail term, too.

However, note that there have been cases when an agent has also sold the property after the principal's death. Such cases can lead to trouble among the legal heirs. Therefore, ensure that while drafting a POA, you are calculating every risk associated with it. In an amendment to the Indian Registration Act, 1908, it was suggested that an agent should provide documentary evidence to prove that the principal is alive by seeking a certificate from a registered medical practitioner which should be valid for a month's time.

Also read: Tips For Tenants With An NRI Landlord