A power of attorney (POA) lets you authorise someone to act for you in a property matter, such as signing a sale deed, collecting rent or appearing before the Sub-Registrar. A general power of attorney (GPA) gives wide powers; a special power of attorney (SPA) is limited to named acts. A POA is an agency, not a transfer of ownership, and in Tamil Nadu a POA relating to immovable property must be registered unless it was executed outside India.
Key takeaways
- A POA makes the holder your agent. It never makes them the owner.
- Tamil Nadu requires registration of POAs relating to immovable property executed in India.
- Stamp duty depends on whether the power to sell is given to a family member, a non-family member, or for consideration.
- A POA ends automatically when the principal dies, so a sale by the agent after death is invalid.
- Buying through a “GPA sale” does not give you title, as the Supreme Court held in 2011.
GPA vs SPA
| Feature | General power of attorney | Special power of attorney |
|---|---|---|
| Scope | Broad powers over one or more properties or affairs | One transaction or a defined set of acts |
| Typical use | Managing an owner’s properties while abroad, long-term administration | Signing one sale deed, one lease, or a patta application |
| Risk to owner | Higher, because the agent can do many things | Lower, because powers are narrow and specific |
| Buyer’s comfort | Buyers and banks scrutinise it closely | Easier to verify against the transaction |
Whatever the label, the document’s wording decides what the agent can do. A POA that allows “management” does not allow sale. A POA to sell does not automatically allow the agent to receive the sale price unless it says so.
The law that governs POAs
- Powers of Attorney Act, 1882 and the agency provisions of the Indian Contract Act, 1872 govern the relationship.
- Under Section 201 of the Contract Act, an agency ends on revocation, on the death or insanity of the principal, or on completion of the business. Section 202 treats an agency coupled with the agent’s own interest as irrevocable, which is why some builders ask landowners for such POAs in joint development deals.
- Registration Act, 1908 as amended in Tamil Nadu (2012): clause (h) of Section 17(1) makes registration compulsory for POA instruments relating to immovable property, other than those executed outside India.
- Indian Stamp Act, 1899 (Tamil Nadu): stamp duty depends on the purpose and who receives the power.
Stamp duty and registration fee in Tamil Nadu
| Type of POA | Stamp duty | Registration fee |
|---|---|---|
| Power to sell immovable property, in favour of a family member | ₹1,000 | ₹2,000 |
| Power to sell immovable property, in favour of a non-family member | 1% of market value | 1% of market value |
| Power to sell given for consideration | 5% of market value | 1% of market value |
| General POA for movable property and other purposes | ₹1,000 | ₹500 |
Source: Tamil Nadu Government stamp duty and registration fee schedule (revisions from July 2023). The higher rates for non-family POAs exist to stop POAs being used as disguised sales. Confirm the current figures and the definition of “family” at the Sub-Registrar’s office or on tnreginet.gov.in.
Why a “GPA sale” is not a sale
For years, some properties were “sold” by handing over a GPA, an agreement and a will, instead of a registered sale deed, to save stamp duty. In Suraj Lamp and Industries v State of Haryana (2011), the Supreme Court held that such transactions do not transfer title. A GPA holder can execute a sale deed on the owner’s behalf, but the buyer’s ownership comes from that registered sale deed, not from the POA itself.
If you are buying a plot in, say, Kinathukadavu or Karamadai and the seller is a POA agent, the chain of title must still lead back to a real owner who executed a valid, registered POA, and the sale deed must be signed by the agent within the powers given.
Checklist when a buyer deals with a POA holder
- Get a certified copy of the registered POA and read the exact powers.
- Check the POA in the encumbrance certificate and confirm no cancellation deed has been registered.
- Confirm the principal is alive on the date of sale. A recent video call, a written confirmation or a fresh life certificate is sensible; many advocates insist on it.
- Ensure the price is paid to the owner’s account, or as the POA specifically allows.
- If the POA was executed abroad, confirm it was attested at an Indian mission and stamped in India within three months of arrival. Our guide to executing a POA from abroad explains the steps.
- Take a legal opinion on the whole chain, not just the latest document.
Protecting yourself as the owner
- Prefer an SPA for a single deal over an open-ended GPA.
- Name the property precisely and set a validity period.
- State whether the agent may receive money, and into which account.
- Keep the original with you if possible; give the agent a certified copy only when needed.
- To revoke, execute and register a cancellation deed, and send written notice to the agent. Informing likely buyers or tenants helps too.
NRIs who own property in Coimbatore often rely on relatives as POA holders. A tightly drafted SPA, combined with regular encumbrance certificate checks, is the safest pattern. Browse independent houses and villas if you are planning a purchase that a family member will complete for you.
Frequently asked questions
Can a POA holder sell property after the owner dies?
No. The agency ends on the owner’s death under Section 201 of the Contract Act. The property passes to legal heirs or under the will, and they must sign any sale.
Does a POA need to be registered in Tamil Nadu?
A POA relating to immovable property executed in India must be registered under the Tamil Nadu amendment to the Registration Act. POAs executed abroad are outside that clause but must be stamped in India and are usually registered or adjudicated before use.
Can a POA holder buy the property for themselves?
Only with the principal’s informed consent. Otherwise the principal can repudiate the deal. Buyers should be wary of sales where the agent is also the purchaser.
Is a POA given to a builder in a joint development deal revocable?
If the builder has an interest in the property under the development agreement, the POA may be irrevocable under Section 202 of the Contract Act to the extent of that interest. Get the terms reviewed by an advocate.
This article is general information as of September 2026, not legal, tax or financial advice. Rules and rates change; confirm with a qualified advocate, chartered accountant or the relevant department before you act.
References
- Registration (Tamil Nadu Amendment) Act, 2012, PRS Legislative Research
- Tamil Nadu stamp duty and registration fee structure (Guidance TN)
- TNREGINET, Registration Department, Government of Tamil Nadu
Selling or buying through a POA holder?
Our Coimbatore team works with owners, NRIs and their representatives to keep POA-based deals clean and documented.
