Does Power of Attorney Mean Someone Else Owns Your Property Now? | Explained | Business News

When granting a Power of Attorney, it is essential to ensure the document is registered. (AI Generated/News18 Hindi)

A Power of Attorney often raises confusion about property ownership, especially when granted to a relative or friend. Many assume it transfers ownership or ends the real owner’s rights, but the legal reality is different.

A Power of Attorney is a legal document that authorises an individual to carry out specific tasks on behalf of the property owner, such as selling or registering property, collecting rent, or managing banking matters. However, it does not confer ownership to the appointed person.

Not Ownership, Just Authority

Granting someone a Power of Attorney means they can undertake legal tasks on behalf of the owner but do not become the property owner. Ownership is transferred solely through a registered sale deed or gift deed.

Decision By The Supreme Court

In 2011, the Supreme Court clarified that no one can become the owner of a property through a Power of Attorney. The court stated it is merely an ‘authority document’ that provides limited rights without conferring ownership.

When Is A Power Of Attorney Useful?

This document is especially useful when the property owner lives in a different city and cannot manage property-related tasks personally. For example, a Delhi resident with property in Mumbai can authorise a trusted individual through a Power of Attorney to handle affairs on their behalf.

Key Points To Remember

When granting a Power of Attorney, it is essential to ensure the document is registered. The specific tasks the authorised person can perform should be clearly defined to prevent potential legal disputes.