Circular R.C.No.7154/C1/2015, Registration of Power of Attorney

What the circular governs

Circular R.C.No.7154/C1/2015 dated 30 January 2019, issued by the Office of the Inspector General of Registration, Chennai-28, gives registering officers guidance on powers of attorney. It is relevant to property owners, buyers, power agents, companies, partnership firms, limited liability partnerships and anyone presenting a property document through an authorised person.

When registration is compulsory

The registration requirements clarified by Circular R.C.No.7154/C1/2015 include:

• A power of attorney granted by one or more individuals to one or more persons for immovable property must be registered if granted on or after 1 December 2012, except where it was executed outside India.
• Registration is optional for a power of attorney concerning movable property.
• Registration is also optional for a power of attorney concerning immovable property granted before 1 December 2012.
• An unregistered power of attorney concerning immovable property that was executed outside India may support the registration of further documents.

Powers registered outside Tamil Nadu

A power of attorney for property in Tamil Nadu may be registered with a Registrar or Sub-Registrar in another Indian State if the principal ordinarily resides within that officer's jurisdiction. It can then be used to execute and register further documents in Tamil Nadu.

The Tamil Nadu registering officer must keep the further document pending while obtaining written verification of the power of attorney's genuineness and continuing validity from the relevant authority. Registration may proceed only after confirmation is received.

Property details and organisational authorisations

A power of attorney dealing with identified immovable property must describe the property sufficiently. If it lacks the required property details, it cannot support further registration. An exception applies to a power given only to purchase property, which may be used for registration of a sale deed, mortgage, DOT and related documents even without an exact property description.

An authorisation or resolution allowing a person to execute and present documents for a company, partnership firm or limited liability partnership is not treated as a power of attorney. The resolution or authorisation must be enclosed with the document.

Agents and cancellation

A power agent cannot appoint a sub-agent to register a document relating to immovable property. A document presented by such a sub-agent cannot be accepted for registration. However, a company, partnership firm or limited liability partnership may itself be appointed as an agent.

A deed cancelling or revoking a power of attorney may be registered where the property is situated or within the jurisdiction where the principal ordinarily resides when the cancellation or revocation is registered.