Maharashtra vide Registration (Maharashtra Amendment) Act, 2010

POWER PLAY

A power of attorney now needs to be registered for transfer of immovable property. writes about specifications of the new regulation

    With effect from April 1, 2013, a power of attorney, relating to the transfer of immovable property is to be registered with the sub-registrar of assurances, failing which, documents relating to the transfer of immovable property where such power is used, are not being accepted by the sub-registrar for registration. An amendment has been carried out to the Registration Act, 1908, as applicable to the state of Maharashtra vide Registration (Maharashtra Amendment) Act, 2010. As per the amendment, one of the documents which requires compulsory registration, is an irrevocable power of attorney relating to the transfer of immovable property in any way, executed on or after the commencement of the Registration (Maharashtra Amendment) Act, 2010. The amendment came into force from April 1, 2013. Prior to this, a power of attorney executed before a public notary was also accepted by the sub-registrar for documents relating to the transfer of immovable property. 
    A power of attorney is a document by which a person gives authority to another person to act on his behalf. A power of attorney can be specific to certain acts and such a power of attorney is termed as a 'specific power of attorney' or 'special power of attorney' or 'power of attorney'. A power of attorney can also be wide enough to cover most acts and such a power of attorney is generally termed as 'general power of attorney'. However, it is the contents of the power of attorney that matter and not the title thereof. The person to whom the power is given is called 'the attorney'. For example, a power of attorney can be given for only managing a property or for only giving a property on leave and license. Similarly, a power of attorney can be given only for sale of a particular property. A power of attorney can also be given to cover most of the acts such as buying or selling of a property; giving property on rent or on leave and licence basis; opening and operating bank accounts; attending to matters in court; conducting business and other activities. A power of attorney can also be given jointly to two or more persons, who could act jointly or severally, as may be specified by the executant. One could also limit the power of attorney for a specified time. 
    Photographs and thumb impressions of the executant and the attorney are also required on the power of attorney, otherwise the same is not accepted by the sub-registrar. Further, it is advisable to mention the details of the property in respect of which the power of attorney is to be utilised, as the sub-registrar insists on the same while registering documents relating to the transfer of immovable property. 
    Although a power of attorney can be executed in favour of any person, if it is executed in favour of a person other than a close relative, authorising the person to sell or transfer the immovable property, the stamp duty payable on such a power of attorney is the same as that on the sale of the property. Thus, a power of attorney for sale or transfer of immovable property, is generally executed in favour of a close relative, as defined under the Maharashtra Stamp Act. In the event of the executant being abroad, a power of attorney executed in the office of the Indian High Commission or the Consulate General of India is accepted. 

QUICK BYTES WITH EFFECT FROM APRIL 1, 2013, A POWER OF ATTORNEY RELATING TO THE TRANSFER OF IMMOVABLE PROPERTY IS TO BE REGISTERED WITH THE SUB-REGISTRAR OF ASSURANCES. 
PRIOR TO THIS, A POWER OF ATTORNEY EXECUTED BEFORE A PUBLIC NOTARY, WAS ALSO ACCEPTED BY THE SUB-REGISTRAR FOR DOCUMENTS RELATING TO THE TRANSFER OF IMMOVABLE PROPERTY.