Buying property on Power of Attorney

Laws & Regulations General Advice
#1

Assalam o Alaikum all,

Recently, a very good location plot was put on offer by a local agent in Islamabad. The demand of the plot was below the market price which created doubts in my mind. Later the agent revealed that the owner of the plot was overseas and has given POWER OF ATTORNEY to his nephew residing in Islamabad. The power of attorney was about 6 years old and seemed outdated and a fake one. However, the agent insisted that the power of attorney has been accepted by the CDA and a new and fresh power of attorney will be submitted at the time of transfer of allotment. He demanded Rs. 500,000 as advance so that he could start the process of transfer. He arranged a meeting between me and the nephew of the owner who is the attorney in this case but just before half an hour before the meeting he rang me up and said that the meeting has been postponed.

During all the meetings and negotiations his information about the plot has been sketchy and he seemed uncertain when replying my queries.

As this matter will benefit many of us, I request the respected veterans of the forum to enlighten us about the process of buying property on POWER OF ATTORNEY and also discuss ways to authenticate power of attorney and other property documents before sealing any deal.

Thanks.

#2

Walikumaslam,

Good to know you were able to safe yourself from trouble.

I recently sold a property via POA, since I am out of Pakistan, I guess you have to follow basic, like POA should be recent dated not 6 years old.

Appreciate others input.

#3

It is better to not buy such property, In my case the POA cancelled while I went for registry. Please check every thing before you go for final deal. All peoples are not same but in Pakistan any thing could be happend. Take care

#4

Do a due diligence exercise through a senior real estate lawyer.

He will check registration record of the PoA. If the PoA is cancelled, the registration record should show it. He should also check the NADRA record of NIC of Owner and of Attorney. In the NADRA record of the Owner, the lawyer will check the names of the heirs and then he will find out if there is any dispute in relation to the property.

After the due diligence exercise is done and the lawyer has done his work, try to talk to the Owner if he is alive. If he is dead talk to the heirs. Preferably get the heirs to sign on the sale deed as witnesses.

Give an ad in all major newspapers that you are entering into this transaction and if anyone has any objections, they may raise them now.

Finally, in the Sale Deed, the Attorney should agree to indemnify the buyer for any claims, disputes arising from any defect in the Attorney's authority to sell the plot. Tell the Attorney to give you a lien over his other property as security if there is any dispute because of his defective authority.

If these conditions are not satisfied, dont buy the plot.

#5

Thanks for very useful information. I hope this brief discussion and especially input by Pk1 will save many from getting into trouble. Keep up the good work.

Salam

#6

Thanks for your kind efforts to knowledge people, i am about to buy a house on POF, owner is living in UK and some one living here in pakistan is entering into contract on his behalf. The house is located in G13 which of course is a CDA SECTOR, i shall be very thank full if i get the complete process to follow up. Where to go and what documents should be checked before buying the house ?

waiting for kind reply.

#7

Hi, Please share with us the validity of General Power of Attoney? How long a GPoA stay alive or valid? Thank you for your quick response. Regards, Younus Shaikh

#8

Poa limite is from date of sign is 6 months only and it expire after it as forign will destroyed its recod

#9

Salam, I have a PoA of an apartment which was made more than six years ago between Brothers. Just six month ago I thought to sell the apartment on behalf of my brother who lived in USA. A local agent found a ready customer and this agent assured me that he can make the deal done. However, we changed our mind and did not go further to sell the apartment. The bottom line is that during the transaction period, we figuted out that PoA is accebtable even after 6 years of old. But I am not sure coz we did not finalize the deal.

I would like to hear from a lawyer to authenticate this issue as this issue is very comon and it was discussed in many times before with NO AUTHENTICATE CONCLUSSION!!!

Many thanks for Zameen.com for great work and dedicated, professional staff support in all kinds of property matters.

I wish from the core of my heart for the success of Zameen Expo 2015. If I was in Pakistan, I should physically be there to appreciate such a great work for local community.

Best of Luck Zameen.com

Best regards,

#10

Dear Members,

I have come across an issue during purchasing a flat in an incomplete project. I am buying a flat now which will be handed over in December/January after six months. I may not be available to do the handover myself. Builder says it's compulsory for the person who's bought the flat file to be physically present to obtain the lease and do handover. I was wondering if there's any other way to perform handover and possession without being there physically. Any Power of Attorney procedure or something like that in place for such scenario?

Regards,

Syed

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