Can your authorization letter sell your land? Know the legal boundaries

I have a small piece of land in a village. I gave the authorization of the land to a childhood friend who lived in that village because I was rarely there. I wonder if he can sell the land in my absence. Can some measures or measures that need to be kept in mind regarding powers of attorney related to property affairs?

– Name detained upon request

As a basic legal principle, no one can transfer a better title than they have. In this case, your friend acts under the power of attorney only as an agent, not the actual owner.

This means that if the property is sold, the transaction is legally sold to the buyer through your agent, rather than being sold directly by your friends. As the due owner, you will be entitled to all benefits and considerations arising from the sale.

Furthermore, it is crucial to consider the Supreme Court ruling, which has always emphasized the legal requirements for the sale and transfer of immovable property, including mandatory registration as required by law.

Supreme Court ruling

Supreme Court Shakeel Ahmed v. Syed Akhlaq HussainCivil Appeal No. 1598 of 2023 clarified that ownership of real estate cannot be transferred through unregistered documents, including an agreement on sale or power of attorney.

The ruling is based on Articles 17 and 49 of the Registration Act of 1908 and Article 54 of the Transfer of Property Act of 1882. The court made it clear that interest without proper registration, no right, ownership or real estate can be granted.

in the case of Suraj Lamp & Industries Pvt. Limited v. Haryana and Annar. (2009 Special Leave Petition (c) No. 13917), the Supreme Court stipulated the scope of the power of attorney and proposed theThe power of attorney is not an instrument of transfer of any rights, ownership or interest in real estate. The power of a power of attorney is to establish an institution in which the grantor authorizes the grantor to act designated on behalf of the grantor, which when executed will be binding on the grantor as if it were done by him.transparent

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The court also clarified in this case –Even irrevocable attorneys do not have the effect of transferring ownership to the grantee. ”

In this case, since the property has never registered a friend of your POA you gave yours, he is not entitled to sell and enjoy its benefits.

From the buyer’s perspective, certain precautions can help protect their interests, such as revoking the power of attorney, in which specific restrictions are imposed on transfers, sales, or any other transactions related to the property.

For sellers, due diligence is crucial to ensuring legitimate voice transactions. This includes thorough review of past sales deeds, checking the ownership document chain, and obtaining mutation records to verify the legitimacy of ownership and ensure legal validity of the transaction.

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Aditya Chopra, Senior Partner at Victoriaam Legalis (TVL) and Amay Jain Senior Partner at Amay Jain