Power of attorney versus gift deed for property to friend 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

Abhimanyu Shandilya

Responded 2 years ago

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A.The question here is that what is it that you want to safeguard? Is it the legally valid transfer of the property to your friend or your rights in the property? Unless you let us know what is the safeguard you are looking for the answer is difficult to provide.
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Vidhi Samaadhaan Vidhi Samaadhaan

Anik

Responded 2 years ago

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A.Dear client,
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
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Advocate Sinjari Bandyopadhyaya

Responded 2 years ago

A.If you are willing to transfer your property right absolutely and for ever in favour of your friend without any Sale Consideration,then registered Gift Deed will be the option but if you are willing to retain the property right but wish to give some authority to your friend to represent you ,then registered Power of attorney will be the option.
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