1. PoA Does Not Transfer Ownership by Itself
A Power of Attorney only grants authority to act on behalf of the owner—it does not make the agent (attorney holder) the landowner.
- Cannot claim personal ownership rights
- Works as a legal representative of the true owner
- Sale must still be in owner’s name unless special clauses apply
- Often misused when not properly registered or executed
2. Only Registered PoA Has Legal Standing for Sale
To be valid for selling immovable property, a PoA must be registered at the Sub-Registrar’s Office, not just notarized.
- Unregistered or notarized PoAs are not accepted for land sale
- Courts have ruled that sale via unregistered PoA is invalid
- Stamp duty and registration charges apply
- Registration ensures traceability and legal enforceability
3. Special PoA Is Required for Land Sale
A Special Power of Attorney (not a general one) is required to specifically authorize the attorney to sell, negotiate, and sign documents.
- Must clearly state permission to execute sale deed
- Includes power to receive payment and represent at SRO
- Limits misuse of broader authority
- Avoids confusion in documentation
4. Sale by PoA Must Still Be Registered in Owner’s Name
Even when a PoA holder executes the sale, the deed must mention the original owner as the seller, with the PoA signing on their behalf.
- Example: “Mr. A acting through PoA holder Mr. B”
- Ensures clear traceability of ownership
- Buyer must retain original PoA copy with sale deed
- Mutation and tax records still reflect the original owner
5. Revoked or Expired PoA Invalidates Sale
If the PoA is revoked, expired, or the principal dies, the PoA becomes void, and any transaction made afterward is legally invalid.
- Valid only during the lifetime of the principal (unless durable)
- Must check PoA validity date or revocation status
- Registrar will reject sale if PoA is found expired
- Buyer must verify PoA activity timeline before deal
6. PoA from NRIs Requires Embassy Attestation
When an NRI issues a Power of Attorney to sell property in India, it must be executed abroad, notarized, and attested by the Indian Embassy.
- Must be re-registered in India at local SRO
- Cannot be used without consular verification
- Essential for validity under FEMA and income tax laws
- Used for inheritance, parental properties, or remote sales
7. Legal Risk If PoA Holder Misuses Authority
There have been cases where PoA holders sell land without proper consent, leading to fraud, litigation, or future ownership challenges.
- Buyers must verify identity and intent of both parties
- PoA must be backed by seller’s signature and bank details
- Prefer sale in presence of principal (if possible)
- PoA misuse is a major red flag for institutional buyers
8. Mutation and Tax Transfer May Face Delays
Land sold via PoA may face delays in mutation or tax record updates unless accompanied by full documentation and PoA validity.
- Revenue authorities may ask for additional clarifications
- Mutation requires both PoA and sale deed copies
- Risk of mutation rejection if PoA not correctly worded
- Must include attested ID and relationship proof
9. PoA Sale Validity Post Supreme Court Rulings
Per the Supreme Court judgment (2011 in Suraj Lamp case), PoA sales alone are not valid for ownership transfer—only a registered sale deed is legally binding.
- PoA + Will + Agreement = Not valid for transfer
- PoA can’t substitute sale deed unless part of regularization scheme
- States may offer amnesty/regularization windows
- Full registration is always safer and legally enforceable
