667+ Lawyers are online 
Power of attorney versus Gift Deed to friend
20-Nov-2023 (In Property Law)
Hi,
Due to some unavoidable reason, me and my friend are planning to buy a property which is going to be registered in my name. However, I will be giving a irrevocable power of attorney soon after so he can take all decisions regarding sale / rent etc. I do not want any rights per se.
While our relation is absolutely great, but we want to take legal precaution if there is some dispute comes between us. Hence my question is :
1. Is getting an irrevocable power of attorney full proof? Can it be challenged later?
2. Is it possible to do a gift deed instead of POA? But I suppose some taxation issue will come in gift deed registration?
What is the best way to make sure that even in future if disputes come, this transaction is full proof?
thx
Hello,
First and foremost important thing how is he going to pay money towards the purchase of the property, if he is transferring it to the sellers account he has to be a part of the agreement as it will attract income tax liability on him in future. If you want to do a gift deed it will attract stamp duty, to secure each of yourself in future make agreements in both of your name and he can give you a specific poa to manage the affairs of the property only.
An mou also can be made between both of you in regards to the property which has to be registered ut that does not stand strong ground of proof.
Hence it is better to make both of you as a parties to the agreement.
Thank you
First and foremost important thing how is he going to pay money towards the purchase of the property, if he is transferring it to the sellers account he has to be a part of the agreement as it will attract income tax liability on him in future. If you want to do a gift deed it will attract stamp duty, to secure each of yourself in future make agreements in both of your name and he can give you a specific poa to manage the affairs of the property only.
An mou also can be made between both of you in regards to the property which has to be registered ut that does not stand strong ground of proof.
Hence it is better to make both of you as a parties to the agreement.
Thank you
Helpful?
22+
22+
Adv. Chinnmay S. Shah
Mumbai | 200+ Answers
CONTACT NOW
Flat registration charges in Hyderabad 2023
Mou registration charges telangana
Property registration charges calculator
mou registration charges
MOU registration charges in Maharashtra
Gift deed registration charges Calculator
Mou registration charges calculator
Mou registration charges kerala
Mou registration charges in tamilnadu
an irrevocable POA if it relates to a property has to be registered so the registration and stamp duty charges will have to be paid.
if you are financing the flat you should record this by a executing an MOU so that you have proof that you have contributed towards the flat.
The Courts have deprecated the practice of transferring right in immovable property by a Power of Attorney, thus it would be better to have a gift deed but in the case of the gift deed you will lose all your rights to the property.
if you are financing the flat you should record this by a executing an MOU so that you have proof that you have contributed towards the flat.
The Courts have deprecated the practice of transferring right in immovable property by a Power of Attorney, thus it would be better to have a gift deed but in the case of the gift deed you will lose all your rights to the property.
Helpful?
11+
11+
Adv. Yunus Vakharia
Mumbai | 25+ Answers
CONTACT NOW
Disclaimer: The above query and its response is NOT a legal opinion in any way whatsoever as this is based on the information shared by the person posting the query at lawrato.com and has been responded by one of the Divorce Lawyers at lawrato.com to address the specific facts and details.
Connect with top Property lawyers for your specific legal issue
No Comments! Be the first one to comment.
"lawrato.com has handpicked some of the best Legal Experts in the country to help you get practical Legal Advice & help."
