By Arosh John | Founder – John Real Estate (MahaRERA Reg. No. A51700001835) | Editor-in-Chief – Thane Real Estate News (TREN)
Thane | October 2025
In Thane and Mumbai, many property owners reside abroad or in other cities and rely on a trusted individual, often through a Power of Attorney (POA), to manage or sell their property. This is a common and legally accepted practice — but only when the POA is executed and registered correctly.
Here’s what every seller and buyer should know about POA-based property transactions in Maharashtra.
1. Only a Registered POA Is Legally Valid for Sale
If you’re selling property through a POA in Maharashtra, it must be registered at a Sub-Registrar’s office under the Indian Registration Act, 1908.
A registered POA carries a registration number, stamp-duty endorsement, and the Sub-Registrar’s seal — all of which make it legally enforceable.
A notarised-only POA is not valid for executing or registering a sale deed anywhere in Mumbai or Thane. Sub-Registrar offices across the region strictly insist on registered POAs for any sale or conveyance.
2. For NRI Sellers: Embassy Attestation + Adjudication in Maharashtra
If the property owner lives abroad:
- The POA must be signed and attested at the Indian Embassy or Consulate in the country of residence.
- Once received in India, it must be adjudicated (stamped) in Maharashtra within three months of arrival, as per Section 18 of the Maharashtra Stamp Act.
After adjudication, it is treated as a valid, registered POA for property transactions across Thane and Mumbai.
3. The Scope of a Sale POA — Representation, Not Ownership
A POA gives authority to sign and represent the seller during registration, but it does not transfer ownership. Title passes only when a registered sale deed is executed in the buyer’s name.
While a POA can include a clause authorising the attorney to receive sale proceeds, this is best avoided.
For clarity under the Income-Tax Act (Section 194-IA) and TDS compliance, it’s always safer for payments to be made directly to the registered owner’s bank account. This ensures that tax deduction, audit trail, and ownership records all align with the rightful seller.
4. POA to Direct Blood Relatives — Preferred, Not Mandatory
In Maharashtra, a POA for sale is legally valid even if granted to a non-relative, provided it’s registered and the correct stamp duty is paid.
However, the Maharashtra Stamp Act treats POAs differently based on the relationship between the owner and the attorney:
- If granted to a close blood relative (spouse, parent, child, or sibling): a fixed concessional stamp duty applies — currently ₹ 500.
- If granted to anyone else (friend, broker, associate): the duty is charged as per conveyance, meaning on the market value of the property, the same as a regular sale deed.
Because of this, and due to tighter scrutiny by Sub-Registrar offices, granting POA for sale to direct blood relatives or spouse is strongly recommended. It’s simpler, cheaper, and less likely to face objections during registration.
5. Buyer’s Checklist in a POA-Based Sale
Before proceeding with a POA transaction:
- Verify that the POA is registered, not just notarised.
- Confirm that the principal (owner) and attorney identities (PAN, Aadhaar) match Index II and title records.
- Read the purpose clause carefully — it must specify the authority to sign and represent for sale.
- For NRI cases, insist on Embassy attestation and adjudication receipt.
- Ensure sale consideration is paid only to the owner’s account, unless the POA explicitly authorises the attorney to receive it (and this clause appears in the sale deed).
Expert Advice from My Experience
In my professional opinion, even when a registered POA is in place, it’s best to conduct all discussions, document verification, and payment transfers directly with the property owner.
Obtain a written declaration from the seller confirming that their POA holder will appear for registration on their behalf, and keep this as part of the transaction record.
If physical meetings aren’t possible, arrange video or digital meetings with the owner as a precaution.
Before registration, always:
- Verify the POA copy and registration number.
- Check with the society or developer about ownership and outstanding dues.
- Obtain a No Objection Certificate (NOC) from the society or developer, issued in the seller’s name.
And most importantly, involve professionals.
Engage a MahaRERA-registered real-estate consultant to manage documentation, verification, and coordination between parties. A registered consultant understands local compliance and ensures all steps follow Maharashtra’s registration norms.
Additionally, consult a qualified property advocate to cross-check the POA, sale agreement, title chain, and society NOC before signing or registration.
These two professionals, working together, can ensure your transaction remains transparent, compliant, and legally sound.
Buying or selling a property via POA in Mumbai or Thane is completely legal when done right. The key lies in registration, professional guidance, and document verification.
A little diligence upfront ensures your deal closes smoothly — without surprises later.
About the Author
Arosh John is a Thane Real Estate Expert, Founder of John Real Estate (MahaRERA Reg. No. A51700001835), and Editor-in-Chief of Thane Real Estate News (TREN). With over a decade of experience in the Thane–Mumbai real-estate market, he specialises in resale and compliance-driven advisory services for domestic and NRI clients.
Disclaimer
This article is based on the Registration (Maharashtra Amendment) Act, 2010, the Maharashtra Stamp Act, 1958, and Sub-Registrar practices in Mumbai and Thane as of October 2025. Laws and procedures are subject to change. Readers should verify the latest requirements with the Department of Registration & Stamps or seek professional legal counsel before executing or accepting any Power of Attorney for property transactions.
