Whether sale deed is mandatory for transfer of property for money, or I could execute power of attorney. A builder contracted me to exercise a power of attorney instead of a sale deed. He also wants a deed of consent for plotting and doing development work on the land. But he says that the consideration shall be paid in installments.
Asked from: Haryana
Sale deed is the valid document for transfer of ownership of property from the seller to buyer in consideration. Any other document or deed such as power of attorney is invalid. There are several modes of transfer of property.
Gift, leas, mortgage and exchange are also a mode of transfer of property from owner to another person. But they are not related to transfer in lieu of considerate or price. When a property is being transferred for price, sale deed is only a valid document.
You should avoid executing such a deed of conveyance. It is invalid because ultimately the sale deed of each plot shall be executed by you. Builder even after power of attorney will have no power to execute sale deed.
The builder wants to engage you in a deed and get exclusive right to do plotting and sale of land. After execution of power of attorney, you will lose right in the property. You cannot sell your land. It is also possible that he may pay some advance as a part of consideration.
This is a general practice of builders especially when the price of property is too high or very demanding. Actually, builders want to engage the landowners in legal deed and get the right to interfere in property without paying consideration in full.
Execution of sale deed is mandatory in transfer of property in lieu of price because government gets revenue in form of stump duty proportionate to the market value of property. Whereas in power of attorney only nominal fees are paid by the proposed buyer and get the right to interfere in the property.
Also read: Fake sale deed
