What is Power of Attorney in Property Context?
A Power of Attorney (POA) is a legal document where one person (the principal) authorises another person (the agent/attorney) to act on their behalf in specific legal matters, including property transactions.
In property buying, two types of POA are relevant:
**1. Buyer's POA:** You are buying but can't attend the registration. You give POA to a trusted person (family member, lawyer) to sign documents on your behalf.
**2. Seller's POA:** The seller can't be present and has given POA to someone to sell on their behalf.
When Buyer's POA Is Legitimate
This is standard practice for NRIs — you're in the US, UK, Singapore, or the Gulf; attending the registration in Chennai is impractical. You give a POA to your parent, sibling, or lawyer to represent you.
Requirements for a valid buyer's POA:
Seller's POA: Where Risk Enters
When you're buying a property and the seller is represented by a POA holder, the risk profile changes significantly.
Questions to answer before proceeding: 1. Is the POA currently valid (not expired, not revoked)? 2. Is the principal (actual owner) still alive? (POA is extinguished on death of principal) 3. Does the POA specifically authorise the sale of this property? 4. Is the POA registered?
How to verify: Call the principal directly if possible. Check whether any "revocation of POA" is registered at the SRO (a revocation can be registered, and if so, the original POA is invalid).
The GPA-Sale Controversy
Courts have repeatedly ruled that a General Power of Attorney (GPA) combined with a possession agreement and a Will (the "GPA-Sale" practice) does not constitute valid property transfer — ownership transfer requires registration of a proper Sale Deed.
If anyone offers to "transfer" a property to you via GPA + Will without a Sale Deed, walk away. This is not a legally secure transaction regardless of how it's presented.
Our Recommendation
If buying through a seller's POA: have your independent lawyer verify the POA, confirm the principal is alive and aware of the sale, and insist on the principal directly confirming (by video call if they're abroad) before proceeding. It's extra work but eliminates the most common POA fraud scenarios.