Power of attorney versus gift deed for property to friend
2 years ago
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
1) yes, an irrevocable POA is full proof. It can not be challenged as POA shows you have authorised it.
2) you can do a gift deed instead of POA and there will be taxes you have to bear.
Thank you
Advocate Sinjari Bandyopadhyaya
Responded 2 years ago