Introduction
Using a POA property India—or buying a home via Power of Attorney (POA)—can seem like an easy shortcut, especially for NRIs or busy buyers. But this route has serious legal and financial risks. In this guide, we break down the Pros and cons of buying via attorney, with real examples, expert input, and clear steps to protect yourself.
1. What Is a Power of Attorney (POA)?
A POA is a legal document allowing someone (the “attorney”) to act on your behalf—the “principal.” There are two main types:
- Special POA: Limited to specific tasks, like completing a sale.
- General POA: Broad powers, including selling or buying property.
✳️ Important legal rule: Under the Transfer of Property Act, 1882, a POA does not transfer ownership—only a registered sale deed does.
2. ✅ Benefits of Buying via Attorney
- Convenience for Remote Buyers
Ideal for NRIs who can’t attend registrations in-person—ICICI Bank outlines this clearly. - Speed & Flexibility
A trusted attorney can handle tasks quickly—negotiations, document signing—without waiting for you. - Expert Representation
Appoint someone who understands legalities and market nuances, offering a smoother experience.
3. ⚠️ Risks of Buying via Attorney
| Risk | Why It’s a Concern |
| No Legal Ownership Transferred | Supreme Court says POA does not give title—only sale deeds do. |
| High Fraud & Misuse | Broad POAs can be used to misappropriate property or blackmoney. |
| Banks Won’t Finance | Banks require registered deeds, not POA-based transactions. |
| Mutation Not Possible | You can’t update municipal/revenue records without sale deed. |
| Future Disputes | Original owner may revoke POA, sell again, or legal issue can emerge. |
| Illegal Tax Evasion | Often used to dodge stamp duty and capital gains—courts crackdown on this. |
4. 🧑⚖️ What Courts Have Said
- SC rulings: POA is not a valid way to transfer ownership—recorded sale deed is essential.
- Supreme Court invalidated many POA “sales,” noting repeated unofficial transfers, leading to fraud.
- Courts have branded some POA-based deals as black money schemes—illegal and penalizable.
5. Real-Life Balance: Pros and Cons Came Together
A property investor may gain convenience buying via POA, but later face inability to register, bank loan refusal, or seller revocation. Many POA buyers end up legally unprotected and trapped in disputes.
6. Avoid These Common Traps
- Trust but verify: Always get title documents checked by a lawyer.
- Use limited (Special) POA: Only for registration steps—not full ownership transfer.
- Register immediately: After POA, ensure sale deed is signed, registered, and stamped.
- Avoid deals bypassing sale deed: Any “discount” is typically because stamp duty is being dodged.
- Never buy agricultural land via POA without legal due diligence. Courts often nullify such deals.
7. ✅ Safe Route: Use POA Correctly
- Use it to complete urgent steps—like loan disbursement or signing sale deed.
- Limit powers strictly: define buyer/sale deed scope only.
- Ensure POA is registered and stamped properly.
- Finalize full sale deed, register it, change ownership in records, receive NOC from seller.
8. Alternative for NRIs & Remote Buyers
- Limited / Special POA: Specifically for registration only.
- Power of Attorney from embassy: Valid abroad and stamped on arrival.
- Legal, notarized sale deed: Essential for true ownership and bankability.
9. Checklist for Buying via Attorney
- Execute Special POA only—validated and registered.
- Appoint a trusted attorney, preferably a lawyer.
- Strict scope: registration, loan disbursement, minimal actions.
- Ensure POA is registered and stamped in relevant state.
- Insist on immediate registered sale deed, stamp duty, and mutation.
- Confirm bank acceptance if taking a loan.
- Verify land-use legality—especially for agricultural plots.
10. Conclusion
Buying property via POA property India can be tempting—but fraught with legal uncertainty. While buying via attorney offers convenience and speed, it doesn’t transfer legal title or mortgage rights. Courts emphasize registered sale deeds—not POAs—as valid proof of ownership. The safer, professional route is to use a special, limited POA for necessary steps, then finalize with proper documentation and registration. That way, you get both ease and legal security.
Source : fulinspace.com
