Power of Attorney for Property Transactions in Karnataka
Managing legal, financial, or property matters often requires your physical presence—signatures, verifications, and visits to government offices. But when distance, time, or availability becomes a challenge, a Power of Attorney (PoA) offers a practical solution.
A Power of Attorney allows you to appoint a trusted person to act on your behalf, ensuring that important transactions and processes continue smoothly even when you cannot be present.
This guide explains how Power of Attorney works for property transactions in Karnataka, when registration is mandatory, the costs involved, and how to use it safely.
What is a Power of Attorney?
A Power of Attorney (PoA) is a legal document through which one party (the principal) gives the second party (the attorney holder or agent) authority to act on their behalf in certain matters as defined by the document. The authority given can be broad (involving multiple activities) or limited (a specific purpose).
A Power of Attorney (PoA) is useful whenever you need someone to act on your behalf because you cannot be physically present, available, or directly involved in a process. It can be used to carry out transactions or legal processes if you are based in a different city or country (NRIs). It is also useful when age, illness, or mobility issues prevent you from managing affairs personally if multiple visits to various offices are required
What matters can you use a Power of Attorney in?
- Property Transactions: You can provide a Power of Attorney to someone to represent you in property transactions for execution and registration of sale deeds.
- Financial Matters: A Power of Attorney can be used to allow your chosen attorney holder to open bank accounts, carry out transactions and manage investments on your behalf. The Agent can also sign contracts on your behalf.
- Legal Representation: Your attorney holder can file cases and affidavits, engage lawyers and appear in court on your behalf if such authority is given to them in the Power of Attorney
- Medical Decisions: A Medical PoA provides the attorney holder authority to make medical and healthcare decisions on your behalf if you are incapacitated.
Power of Attorneys For Property Transactions in Karnataka
In Karnataka property matters, a PoA may allow the attorney holder to:
Important:
A PoA grants authority, not ownership. Ownership transfers only through a registered sale deed.
When Is a Power of Attorney Used for Property in Karnataka?
PoA is commonly used in Karnataka in the following situations:
- The owner lives outside the city or India (NRIs)
- The owner cannot attend registration due to work, health, or travel
- Elderly owners need assistance with property administration
A Power of Attorney can be used to avoid delays caused by physical absence.
Types of Power of Attorneys for Property used in Karnataka
General Power of Attorney (GPA)
A General Power of Attorney (GPA) in Karnataka provides the attorney holder a broad authority over the property. The allowed activities are defined in the registered document. Depending on the terms mentioned in the PoA, the attorney holder may
- Sign sale agreements or sale deeds on behalf of the property owner and appear at the sub-registrar's office for execution and registration of the documents.
- Collect rent and maintain a property on behalf of the Principal.
- Deal with utilities or local authorities in lieu of the property owner.
A General Power of Attorney (GPA) does not allow transfer of ownership or be used as a substitute for a sale deed. In 2011, the Supreme Court ruled GPA-based property sales illegal in Karnataka
Special Power of Attorney (SPA)
A Special Power of Attorney (SPA), also known as Limited Power of Attorney (LPOA) authorises only a specific act as mentioned explicitly in the document. Unlike a General Power of Attorney, a Special Power of Attorney is limited in scope, often to a particular property or transaction.
For property transactions, Special Power of Attorney is used more often than General Power of Attorney.
Landeed helps you draft your Power of Attorney flawlessly to conduct your business seamlessly and protect your interests
Is Power of Attorney Registration Mandatory in Karnataka?
Yes, it is mandatory for a Power of Attorney for property transactions to be registered at a Sub-Registrar's Office (SRO) in Karnataka. A PoA cannot be used for the following without registration
- Sale of immovable property
- Execution of a sale dee
Stamp Duty and Registration Fees for PoA registration
- Power of Attorney for specific transactions: ₹700-1200
- Power of Attorney to a family member (father, mother, children, siblings, spouse): ₹7000-8000
- Power of Attorney to anyone else: 7% of the property market value or consideration value
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Validity and Revocation of a Power of Attorney
A PoA becomes invalid if:
- The Principal or Attorney Holder dies
- The PoA is revoked
- The specified purpose is completed
- The Principal becomes incapacitated (unless durable PoA is specified)
A Power of Attorney may be revoked by the Principal by drafting a revocation deed and registering it at the Sub-Registrar's office
Risks of Using Power of Attorney in Property Transactions
PoA misuse is a known risk in Karnataka real estate. Common issues include:
- Fake or forged PoAs
- Hidden revocations
- GPA-based “sales”
- Vague authority clauses
Careful drafting and verification are essential to protect the Principal's interests.
Conclusion
A Power of Attorney is a practical and powerful tool for property transactions in Karnataka—when used correctly. Proper drafting, correct stamp duty, and mandatory registration ensure that transactions proceed smoothly without legal risk.
Landeed helps you draft a precise Power of Attorney and register it for clean execution and long-term ownership security.
