Will transfer is not a valid mode for property transfer in Delhi : SC
The Supreme Court has declared the sale of immoveable property in Delhi through the use of a power of attorney will not be considered as a valid mode of transfer of immovable property.
This judgment will have a negative effect on the residential real estate market of the national capital. The Power of attorney is a popular instrument for property transactions, where the ownership changes without payment of stamp duty to the state government.
In a bid to encourage property registration and freehold ownership, the government is disallowing sale of property or land on the basis of power of attorney.
Real estate legal experts feel that after implementation of this rule, the transactions will be cleaner, the government revenue will increase, it will lead to a decrease in black money and will also reduce the growth of land mafia and the criminalization of civil disputes.
On the other hand it will increase the cost of the free hold properties and the seller will have to budget for more time and money during the process of selling his property.
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Source: Economic Times
free hold properties, Power of attorney, property in Delhi, Real estate legal experts, Real-estate market, sale of property, Supreme Court, transfer of immovable property
