Power of Attorney For Property Related Purposes

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1) What is Power of Attorney and its property related purposes?

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• ​(a) Power of attorney is a document which is given by its maker (the Principal) to the receiver (i.e. attorney holder or agent) giving him/her power to do certain things and acts for the sole purpose described in the power of attorney document.

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• (b) Power of Attorney can be given,

1. For sale of existing property

2. For purchase of new property

3. For renting in/ renting out of property

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• (c) Power of Attorney is given for following signing & register related purpose:

1. Power to sign and power to register of property documents such as sale agreement, sale deed, leave and license (rent) agreement, etc. These powers are given by the maker to the attorney holder.

2. OR

3. Power to register only of property documents such as sale agreement, sale deed, leave and license (rent) agreement, etc. This power is given by the maker to the attorney holder, but power to sign rests with the maker only.

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2) Is Power of Attorney mandatory to be registered in the government registration office, i.e. Sub-Registrar Office (SRO)?

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Yes. For registration of above mentioned power of attorneys, the maker (principal) should be a residence in the area where the registration is to take place. (Residential document proof of maker and attorney holder is required to be shown at SRO such as Aadhar Card / Passport / Bank Pass Book / Driving License / Rent Agreement along with one attached photographs) E.g.- If maker resides in Pune, he needs to register power of attorney in Pune only.

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3) What are the stamp duty and registration charges on Power of Attorney?

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The stamp duty in Pune, Maharashtra differs as per the powers conferred as under:

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1. When the power is given for "signing and registration of agreement", without giving any monetary consideration, to the attorney holder being a following person:

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• (a) 'close relative- such as father, mother, brother, sister, husband, wife, daughter, son, grandson, grand-daughter or father, mother, brother or sister of the spouse' for the purpose of selling/ buying/ renting of the property, then stamp duty of Rs.500/- and registration fee of Rs.200/- are charged, subject to change as per government notifications.

• (b) 'other than close relatives or a friend' for the purpose of buying/ renting of property, then stamp duty of Rs.500/- and registration fee of Rs.200/- are charged, subject to change as per government notifications.

• (c) 'other than close relatives or to a friend' for the purpose of selling of the property, then stamp duty and registration fee will be charged as per the charges prescribed for the sale of property document i.e. 6% of agreement price or government ready recknor price, whichever is higher, subject to change as per government notifications. (Currently, stamp duty rate is @ 3% and 2% in Pune city and Pune rural areas respectively till December, 2020).

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2. When the power is given "for registration of agreement" to the attorney holder being a following person:

(a) 'all persons such as close relative or other than close relative or a friend' for the purpose of selling/ buying/ renting of property, then stamp duty of Rs.500/- and registration fee of Rs.200/- are charged, subject to change as per government notifications.