One-minute guide to understanding | General power of attorney
What am I?
I am the legal document that is framed according to the ease of the property owner. I grant considerable power to a third party to act on the owner’s behalf to sell a property. I clearly define the terms and conditions relating to the price of the property and its payment.
When am I used?
I am mostly used in the secondary market to execute the sale and purchase of property. However, this does not involve the transfer of title deed. A clear title deed is awarded to a buyer in case the property is freehold.
Red flags about me
Property sold on the my basis can actually land you in trouble. This is because I only give you the possession of the property and do not ensure that the title deed is in your name. So, while you can stay in that apartment, you can’t claim full ownership if someone else lays an ownership claim. Banks, too, do not finance a property bought on the basis of power of attorney.
What’s the way out?
After buying a property, you need to file a declaration in the civil court and get the title. Under the declaration, you appear before the magistrate and testify that you have bought the property and you own all related documents.
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