Payment of Sale Deed Value: Should It Be in the Owner’s or Agent’s Name?

Payment of sale deed value amount on whose name owner or agent: I am planning to purchase a vacant land has made General power of Attorney registered Sub registrar Office, with powers to sell the schedule property

• To sell or purchase any movable or immovable property on my behalf

• To sell below schedule mentioned property on my behalf

“ON WHOSE NAME THE DEMAND DRAFT has to be taken” In the name of absolute owner OR the power agent.

Inquiry Regarding Purchase of Vacant Land and Power of Attorney Concerns on Payment of Sale Deed Value

Introduction

I am writing to seek legal advice and clarification on a real estate transaction involving a vacant land purchase and a General Power of Attorney (GPA). Below, I have detailed the circumstances, concerns, and specific queries requiring your expert guidance.

Background of the Property

The property in question is a vacant land parcel for which a General Power of Attorney has been registered at the Sub-Registrar Office. The GPA grants the power agent authority to:

1. Sell or purchase any movable or immovable property on my behalf.
2. Sell the schedule property on my behalf as detailed below.

The above clauses are essential in the context of this transaction, as they determine the procedural and legal steps required for the sale to proceed.

Key Concern: Demand Draft Recipient

A critical question I face pertains to the preparation of the payment in this transaction, specifically:"In whose name should the demand draft (DD) be taken? Should it be in the name of the absolute owner of the property or the power agent empowered under the GPA?"

Points of Clarification Needed

To facilitate the smooth and legally compliant execution of this transaction, I require clarification on the following:

1. Legal Validity of General Power of Attorney

• Registration Compliance: Since the GPA is registered at the Sub-Registrar Office, does it meet all necessary legal requirements to allow the power agent to act on behalf of the absolute owner?
• Scope of Authority: Are there any restrictions on the power agent’s ability to execute the sale, particularly in relation to receiving payment?

2. Recipient of the Demand Draft

• Absolute Owner:
  • Would the demand draft be legally valid if issued in the name of the absolute owner?
  • Are there scenarios where issuing payment to the owner may bypass potential disputes?
• Power Agent:
  • If you make the payment to the power agent, what additional documentation or safeguards ensure the proper transfer of funds to the owner?
  • Would the power agent’s acknowledgment of receipt of payment suffice for legal compliance?

3. Safeguards to Prevent Future Disputes

• Indemnity Clauses: Would including indemnity clauses in the sale agreement protect me from future claims by the owner or any third parties?
• Encumbrance Check: How can I ensure that the property is free from liens, mortgages, or other encumbrances before proceeding?
• Owner’s Consent: Should a separate consent letter from the absolute owner be obtained, even if the GPA is valid?

4. Procedural Steps for Secure Transaction

• Verification of GPA:
  • How can I verify the authenticity of the GPA and confirm that it has not been revoked or altered?
• Witness Requirements:
  • Are witnesses required at any stage of the transaction to validate the payment or transfer of property?

Recommended Course of Action

To ensure this transaction proceeds without legal complications, I request your assistance in:

1. Reviewing the GPA document and verifying its validity.
2. Advising on the proper recipient for the demand draft based on legal precedents and best practices.
3. Drafting a legally sound sale agreement incorporating necessary safeguards.
4. Conducting due diligence to confirm the property’s legal status.
5. Preparing any additional documents required to secure my interests as the buyer.

Documents Available for Review

I have the following documents ready for your review:

• Copy of the General Power of Attorney
• Property schedule details
• Title deed (if available)
• Encumbrance certificate (if available)

Please let me know if any additional documents are in need.

Summary of Queries

To summarize, I am seeking guidance on:

1. Recipient of the Demand Draft:
   • Absolute Owner or Power Agent?
2. Verification of the GPA:
   • Legal validity and scope of authority.
3. Safeguards for the Buyer:
   • Steps to prevent future disputes.
4. Procedural Clarity:
   • Ensuring the transaction complies with all legal requirements.

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Conclusion

I would appreciate your legal advice and assistance in this matter at the earliest convenience. Please let me know your availability for a consultation, as well as your fee structure for handling this transaction.