Difference Between Property Registry and General Power of Attorney For Property

Welcome Family…. Now, We are giving you the information between General Power of Attorney For Property and Property Registry. This is too much important topic which is related to properties. We can see that many of land in India are using General power of attorney, is this safe or not? Lets read more about of GPA and Registry

Meaning of General Power of Attorney For Property ?

A power of attorney (PoA) is a document that gives another person the legal authority to act on your behalf as per the terms mentioned in the document. In the case of a demat account, the PoA gives the online broker the legal authority to take certain decisions on your account.

How many of General Power of Attorney For Property

The following are the 3 types of power of attorney

General Power of Attorney for Property

The General Power of Attorney is a comprehensive legal document that grants broad powers to the appointed individual, known as the “attorney-in-fact” or “agent.” This type of POA empowers the agent to act on behalf of the principal in various matters, including financial transactions, property management, business operations, and legal affairs.

A General Power of Attorney  for Property is commonly used when the principal is unavailable or unable to manage their affairs due to travel, illness, or other reasons. It provides the agent with the authority to make decisions and take actions as if they were the principal themselves.

Special Power of Attorney

Unlike the General Power of Attorney, the Special Power of Attorney is more specific in nature. It grants limited powers to the agent for carrying out particular tasks on behalf of the principal. The scope of authority is clearly defined within the document, and it can include actions such as property sale or purchase, bank transactions, tax filings, litigation proceedings, or other specific matters.

The Special Power of Attorney is a useful tool when the principal wants to delegate authority for specific tasks without granting broad powers. It ensures that the agent has the legal authorization to act on the principal’s behalf within the defined scope.

Limited Power of Attorney

The Limited Power of Attorney, as the name suggests, grants restricted powers to the agent for a specific purpose or within a defined timeframe. This type of POA is commonly used in situations where the principal needs assistance with a single transaction or a limited period.

For example, if someone is traveling abroad and wants to authorize another person to sell their property during their absence, a Limited Power of Attorney can be used. It enables the agent to act solely for the specified purpose and ceases to be valid once the purpose is fulfilled or the specified timeframe expires.

Do you need to register a GPA?

A General Power of Attorney For Property must be registered at the Sub-Registrar Office (SRO) to get legal validity. Moreover, the GPA is not valid for an indefinite period. It is valid for the lifetime of the principal, and can also be revoked within the lifetime of the owner. The Special Power of Attorney (SPA), on the contrary, stands revoked when the specific task assigned to the SPA is completed.

IS POA is safe?

The law does not recognise any irrevocable power unless coupled with an interest. Purchase of property through such a power is not safe and is likely to increase the chances of unforeseen complications. Hence, it must be avoided.”

Meaning of Property Registry

Property registration is the process of recording the ownership details of a property with the government. In Delhi, property registration involves registering the property transaction with the local government authority, typically the sub-registrar office. This process establishes legal ownership of the property and ensures transparency in property transactions.

Legal Ownership: Registry establishes legal ownership of the property. It provides concrete proof of who owns the property, which helps prevent disputes over ownership.

Protection of Rights: Registry protects the rights of property owners. Once a property is registered, the owner has legal recourse in case of any infringement on their property rights.

Transparency: Property registry ensures transparency in property transactions. It provides an official record of property ownership, which can be accessed by interested parties such as potential buyers, lenders, or government authorities.

Prevention of Fraud: Registry helps prevent fraud in property transactions. By documenting the details of each transaction and verifying the identities of the parties involved, registry authorities can reduce the likelihood of fraudulent activities such as illegal transfers of property.

Access to Legal Remedies: In case of disputes related to property, having the property registered provides access to legal remedies. Registered property can be used as collateral for loans, and the owner can seek legal recourse through the courts if their property rights are violated.

Taxation Purposes: Property registry helps governments assess and collect property taxes. It provides a basis for determining the ownership and value of properties, which is essential for calculating property taxes

Registry is more Secure and safe than GPA?

Property Registry is often considered more secure and legally binding than using a General Power of Attorney For Property (GPA) for several reasons:

Direct Ownership Transfer: Property registration involves the direct transfer of ownership from one party to another, documented through a legally binding sale deed. This provides clear evidence of the transfer of title and ownership rights.

Government Recognition: Property registration is recognized and regulated by government authorities, such as the land registration department or sub-registrar office. This adds an extra layer of validation and authenticity to the transaction.

Public Record: Registered property transactions become part of the public record, accessible to anyone who wishes to verify ownership details or conduct due diligence. This transparency helps prevent fraud and disputes.

Legal Enforcement: In case of any disputes or legal issues related to the property, a registered sale deed provides stronger legal grounds for enforcement compared to a POA. Courts are more likely to uphold the validity of a registered sale deed in property disputes.

Clarity and Certainty: Property registration provides clarity and certainty regarding ownership rights, which is essential for both parties involved in the transaction as well as third parties, such as lenders or potential buyers.

Protection Against Fraud: Registration authorities verify the identity of the parties involved and ensure compliance with legal requirements, reducing the risk of fraudulent transactions.

While a General Power of Attorney For Property (GPA)  can be a convenient tool for property transactions, especially in situations where the owner cannot be physically present, it may not offer the same level of security and legal validity as property registration. Therefore, in most cases, property registration is preferred for ensuring the legality and authenticity of property transactions.