Thursday, 25 September 2014

An article about " Your Queries on Property Matters "

 property_matters

Q. My uncle has given Power of Attorney to his friend to develop certain properties, negotiate and sell them. He has also received the consideration. The stamp duty paid on Power of Attorney is Rupees One Thousand only and the Power of Attorney is not registered. The Attorney holder has developed the property and has sold to various purchasers. But now uncle wants to gift some portion of the said property to his sister. Since the stamp duty paid on Power of Attorney is only Rupees One Thousand and not as per sale deed and as it is not registered, can my uncle claim that the sale deeds executed by his friend, Power of Attorney holder as irregular and not enforceable and gift the property to his sister. 
A. The stamp duty payable on Power of Attorney given to a promoter to develop the property and to sell the property is only Rupees One Thousand and not as payable on sale deed. As such the Power of Attorney given by your uncle to his friend is properly stamped. The Registration of such Power of Attorney is also not mandatory as per Indian Registration Act. If the person other than the executor of the sale deed presents the document for registration as a Power of Attorney holder and admits the execution; such Power of Attorney requires registration. But if the person who is signing the documents and the person who presents the sale deed for registration an admits the execution are one and the same, such Power of Attorneys need not be registered. In the instant case, the Power of Attorney holder himself has executed the sale deed and has admitted the execution.
Further your uncle has received the consideration, and his friend has developed and sold the property in furtherance of powers given to him.
As such your uncle cannot claim that the sale deeds are irregular not enforceable and also cannot revoke the Power of Attorney. He has no right to gift a portion of the said property to his sister.

Q. I am founder of an educational institution situated on the outskirts of Mysore. The institutions is fast developing and needs expansion. There are various agricultural lands surrounding the institution. But sale and purchase of Agricultural lands is restricted in Karnataka. Though the owners are willing to convert the land and then sell it is costly, which our institution cannot afford. Please advise how can I acquire additional land for the educational institution.

A. There is provision under Karnataka Land Reforms Act. Section 109 of the act empowers the government exempt any land in any area, from the provisions of the sections 63, 79-A, 79-B or 80 to be used by educational institutions recognised by state or central government for non-agricultural purpose. The limit is four units of land; you may approach the District Revenue Authorities, for exemption of the restrictive provisions of sale/purchase of agricultural land, which you want topurchase.

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