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. Post registration activitiesare 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 advocate should 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.
Afterregistration 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
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 is employed 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 dutypayable.
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 Executant 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 the agent 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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