Power of Attorney (POA) or General Power of Attorney (GPA) is a legal document that allows one
person to act on behalf of another person. In other words, a legal authorization provided to a
person, called an attorney and Agent or POA Holder, the power to act on behalf of another person,
known as the principal or executant.
In real estate dealings, the POA is often used when the Principal is unable to be physically present to sign necessary legal documents such as Sale Agreement, apply for financial assistance, execute the loan agreement, and executing Sale Deed, and present the same before registering authority, etc.
While purchasing immovable properties, any trustworthy person can be a POA Holder representing the Purchaser (Principal). The POA document needs to be executed and registered at a Registering Authority, near the residence of the Principal. There will be nominal stamp duty and registration fees applicable.
The POA can be executed outside the country, where the Principal resides. Depending upon the land laws applicable in that country, the POA can be executed and either notarized or attested by the Indian Consulate Officer. In such a case, the executed POA document needs to be adjudicated at the jurisdictional District Registrar’s Office, in whose jurisdiction the property is situated.
But in the case of selling immovable properties, there are restrictions for the seller to execute a POA. If POA is executed in favour of a family member, such as a parent, spouse, children, brother, or sister, then nominal stamp duty and registration fees shall be applicable, as stated above. And if POA is executed in favour of any third party, heavy stamp duty and registration fee, (as applicable to the registration of the sale deed, which is presently (March 2023) 6.6% apx. of the value of the property in Karnataka) shall be applicable.
