Legal Question in Real Estate Law in India

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I wanted to sell my flat in Mumbai. I approached my sister and got a Power Of Attorney registered in Gujarat. This POA specifically mentioned that the POA is granted to me for selling the flat to the specific buyers(the buyers names were specifically mentioned). Now I am unable to reach any form of agreement with them related to sale of my property. The buyers have also kept the original POA with them. On the original POA that was registered in Gujerat neither my name or my signature was taken at the time of registration. But some people tell me my name and signature are not required to make the POA valid. Please tell me what I should do? Will a renouncing of my POA suffice. My sister would not mind helping me with it. Now the buyer tells me I am in a binding contract with him I have not taken any token money, I have sent him emails for the past two days requesting to atleast get an MOU done but am getting no response. Please help

Asked on 4/20/12, 11:23 am

3 Answers from Attorneys

Fca Prashant Chavan Expert Edge LLP

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21.04.2012

Your sister has issued you a specific Power of Attorney which automatically becomes null and void if the sale transaction with the prospective buyer does not go through. It is illegal on the part of the prospective buyer to retain the original POA and you should ask him to immediately return it back to you. If the buyer feels that you are in a binding contract with him, ask him point blank to pay up 10% of the consideration as non-refundable token money upfront, and all the remaining monies agreed for sale of the flat payable to you, within 15 days. There is no need for any MOU. Get an Agreement for Sale drafted with these terms and conditions and get him to sign it. If the prospective buyer dilly-dallies and most importantly, does not pay-up as agreed, he is not serious and the whole transaction is only a "farce" or a "false alarm".

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Answered on 4/20/12, 8:40 pm

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RAJIV GUPTA (Cell: +91 9811284735) [email protected]

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in order to avoid the complications, you simply go for cancellation of the GPA issued in favour of your sister and serve a legal notice upon the buyer informing him of the cancellation. even if he files a suit for specific performance at a later stage, this would serve as a good defense.

Answered on 4/21/12, 10:34 am

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