sarasuma

Hi friends,

planned to sell 1 acre agri land to a real estate company, they are planning to create a layout and sell, for that they asking power of attorney and sale deed, my doubt is once the land is sold why they asking power of attorney? whether the sale deed is not enough to get approval for that layout? kindly clarify.

Thanks in advance.

Suresh.chari

If the sale deed is executed there is no need to give POA. However, I think the company will get the POA instead of Sale Deed as it would be economical. Anyway, get your facts right the company and ask clarification

abk

pls clarify are they registering the sale deed ? obviously no!
these may be bcoz
1) they are trying to save the stamp duty
2) they will sell the plots at higher price and will put the burden of the tax on your head as technically you are the owner and the liabilities which may incurr as a consequence of the sale.

i suggest you go to a lawyer and auditor to acertain ways to protect your interests as the promoters generally will ask for the POA only. if you are happy with the sale price then it justifies the extra step you should take.

anyways tell me what you mean by they want POA and sale deed(regd)

sarasuma

they are planning to register the sale deed, even they asking POA. is it essential for them to convert the agri land to residential plots to get permission from CMDA or DCTP??

abk

confusing!

they are planning??

if they regd the sale deed then they become the owners and ipsofacto your POA is null and void,and hence it is very confusing why they need it.

i see only one reason that they will apply for approval in your name before the patta transfer takes place and they dont want to waste the time.

in such a scenario i would suggest that you give a special POA with powers only to represent in the DTCP office.tahshildar,etc.that should suffice for the reason they have given.

Economist

Do not give POA to the buyers.

You may think I have received all the money,why not give POA instead of registering the sale deed?

After 2-3 years you will get a notice from the Income tax Dept.

Say you sell the land for 50L and after reciving full consideration you are giving a POA (not registered sale deed)

The devloper subdivides the land,register the layout and get all the approval and he sells the lay outs for say 1 C.

In the eye of law you have sold the land to other people (as lay out) for 1c therefore you are liable for Capital gains tax for 1C.

You only sold for 50L but you will pay IT for 1C.

The developers always say that they ae doing this for saving on registration charge but that is not true - they want to pass on all the liabilities to you.

I know cases where the original seller was liabile for construction faults of the builder as the builder acted on a POA.

sarasuma

Thank you friends...