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Power of Attorney

A Power of Attorney is an instrument that is used by to give authority to somebody else to legally act on the grantor's behalf. They can be of two types - General power of attorney (GPA) and Special power of attorney (GPA).

An SPA (Special Power of Attorney) is used for transfer of a specific right to the person on whom it is conferred, while the GPA (General Power of Attorney) authorizes the holder to do all the necessary Acts.

For example, in sale of Property using this instrument, the buyer gets a General Power of Attorney from the seller not only for his own use of the property, but for further 'sale' to someone else in future. However, a General Power of Attorney holder can only sell the property through another General Power of Attorney in future.

It is important to note that, with effect from 11th October, 2011, Sale of Properties through General Power of Attorney has been banned in Delhi, in view of the Supreme Court judgement given in the case of Suraj Lamp & Industries Pvt. Ltd. Vs. State of Haryana.

Currently, only those Power of Attorney which are executed in favour of Family Members are being registered in the Sub-Registrar Offices in Delhi.

However, you can sell a property by first getting your property converted from Leasehold to Freehold and then executing a Sale Deed in favour of the purchaser.

Important Points to note in case of Registration of General Power of Attorney / Special Power of Attorney in Delhi are :

1. Stamp Duty equivalent to that payable on registration of sale deed needs to be paid in case of General Power of Attorney other than blood relations. However, such Power of Attorney is currently not being registered in Delhi.
2. General Power of Attorney between blood relations can be registered with stamp duty of Rs.50/- and registration fee of Rs.1100/-.
3. Two witnesses alongwith identification documents need to be present during presentation of documents before the Sub - Registrar.

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