A lot of properties are being sold on the basis of power of attorney and there are many properties with unclear or disputed titles. To put a stop on this, The Supreme Court of India,┬áin a recent judgment , has ruled that “a transfer of immovable property by way of sale can only be by a deed of conveyance (sale deed). In the absence of a deed of conveyance (duly stamped and registered as required by law), no right, title or interest in an immovable property can be transferred.”

That means any sale transaction carried by way of General Power of Attorney will have no legal sanctity. The apex court further said that “A high rate of stamp duty acts as a damper for execution of deeds of conveyance for full value, and encourages sale agreement/general power of attorney/Will (SA/GPA/Will) transfers? When high stamp duty is prevalent, there is a tendency to undervalue documents, even where sale deeds are executed.” It asked states to reduce the stamp duty in order to prevent the undervaluation of property.

Before you buy any property it is essential to know about the property you are going to buy. It is a kind of due diligence process that one must undertake before buying a property.