Legal Question in Wills and Trusts in India

I have 5 acres of land and a broker has asked me to give him a letter of authority on a Rs.100 stamp paper (which he may or may not register). The content will be as follows: I hereby authorize Mr.____ to sell 5 acres for Rs.___. This is for a time period of 3 months only. During this time period, he has complete authority to erect boards and negotiate with other buyers but this does not give him possession of the land.

He also wants the original tax receipts,possession cert. , encumberence and deed of the land. my question is Now is

1. Since he wont pay money as advance, can he refuse to give back the Letter of authority after the time period?

2.Can he have any claims over the said property because of the Letter of authority?

3.How is this different from Power of authority?

4. Would you advise me to sign this Letter of Authority?

Thanking you.


Asked on 10/15/13, 5:12 am

2 Answers from Attorneys
Kabita Loharka

dear client...

No do not give such authority nor give any original receipt ...

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Answered on 10/16/13, 4:44 am
Fca Prashant Chavan Expert Edge LLP

16.10.2013

Dear Sir / Madam,

You should not issue any such Letter of Authority to the broker. Simply tell him that you will pay him the agreed percentage of brokerage if he gets a purchaser of the land for you, and you should directly deal with the purchaser and close the deal.

Regards,

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Answered on 10/16/13, 7:03 am


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