PoA for Transfer of Property Rights: What Every Property Buyer Should Know

In Indian real estate, paperwork has always played a big role. Sometimes more than the property itself. One such document that creates confusion even today is the power of attorney property document. For many years, people used PoA in real estate for buying, selling, and managing properties, especially in big cities. It felt convenient. It felt fast. But over time, misuse happened. Courts stepped in. Rules changed.

Now, if you are dealing with property transfer POA, you need to understand how it really works. Not just in theory, but in real life.

A power of attorney is a legal document where one person gives authority to another to act on their behalf. In property matters, this means someone else can manage, rent, or sometimes sell your property.

This is common among NRIs, elderly people, or busy professionals. For example, if you live abroad, you may give PoA to a trusted family member.

But remember, PoA does not mean ownership. It only means permission. That difference is very important.

Earlier, many people used property sale through power of attorney to avoid stamp duty and capital gains tax. Especially in cities like Delhi.

Instead of registering a sale deed, they used GPA, agreement to sell, and a will. On paper, it looked legal. In reality, it was risky.

This system worked for years. But slowly, disputes increased. Fraud cases rose. Courts had to intervene.

In 2011 and later in 2019, the Supreme Court made it clear. Property ownership cannot be transferred through GPA.

Only a registered sale deed gives legal ownership.

So today, legal validity of POA property is limited. PoA can help in execution. It cannot replace sale deeds.

This ruling changed the entire market. Many old transactions became problematic. Buyers faced difficulties.

The Registration Bill 2025 has tried to bring clarity. It defines how PoA should be executed and authenticated.

If the principal is in India, registration is needed. If abroad, attestation through embassy or notary is required.

This strengthens rules for power of attorney in real estate India. The aim is simple. Reduce fake documents. Improve transparency.

There are mainly two important types.

General Power of Attorney, or GPA property sale related documents, give broad authority. Managing bank work, collecting rent, handling disputes.

Special Power of Attorney, or SPA for property, is limited. It allows only specific tasks, like selling one particular flat.

For property transactions, SPA is safer. GPA requires very high trust.

Many people confuse these two. But their impact is different.

GPA gives wide control. It is flexible but risky. Misuse is possible.

SPA is restricted. It mentions exact work. It ends when the task finishes.

So when comparing GPA vs SPA in real estate, most lawyers prefer SPA for sale or purchase.

Less power. Less risk. More clarity.

PoA is useful in genuine situations.

If you are an NRI.If you are unwell.If you cannot travel.

In such cases, PoA for NRI property India becomes practical. It saves time and cost.

But using PoA only to avoid taxes or registration is dangerous. That era is over.

Legally, this is risky. A person selling property to himself using PoA is usually seen as suspicious.

Courts prefer such transfers to happen only through proper registered sale deeds.

Otherwise, it can be considered fraudulent.

So yes, technically possible. But legally unsafe.

If PoA is for selling property, registration is mandatory in most states.

Notarised PoA alone is often not enough.

Stamp duty depends on relationship. If given to close family, charges are lower. Otherwise, duty can be high.

Always check state-specific rules. They differ.

This is where buyers suffer most.

When you buy via PoA, you may get possession. But not ownership.

Mutation may not happen.Utility bills may stay in old name.Banks may refuse loans.Seller may later create trouble.

These are classic risks of buying property through GPA.

Many buyers realise this only when they try to resell. Then problems start.

Earlier, sellers and buyers created three documents.

Agreement to sell.Irrevocable GPA.Will.

Together, they looked like ownership.

But legally, they were weak. This system helped people hide money. Avoid tax. Manipulate records.

That is why courts stopped it.

PoA can be cancelled anytime by the principal, in writing.

Oral cancellation is not valid.

Also, if the principal dies, PoA automatically ends. It becomes useless.

Many people forget this and continue transactions. That creates legal mess.

For renting, SPA works well.

It can allow someone to sign lease, collect rent, manage deposits.

But terms must be clear. Amount. Duration. Rights. Everything.

Loose drafting causes disputes later.

If you really need PoA, follow these steps.

Choose someone trustworthy.Limit powers.Register properly.Consult a lawyer.Avoid shortcuts.

This is the safest way to how to use PoA for property transactions safely.

Never copy random formats from internet without legal review.

Many people use PoA because of trust. Family. Friends. Relatives.

But money changes relationships. Sadly, that happens.

So even with trust, keep legal protection.

Good documentation protects both sides.

Power of Attorney plays an important role in property management and transactions, especially for NRIs and busy owners. However, it does not transfer ownership and cannot replace a registered sale deed. After Supreme Court rulings, property sales through GPA are no longer valid. Buyers must be cautious while dealing with PoA-based transactions due to legal and financial risks. Using Special Power of Attorney, proper registration, and legal guidance helps reduce misuse. A well-drafted, limited, and transparent PoA ensures safer and smoother property dealings.