Skip to main content

Demystifying Plan Sanction and Power of Attorney in Commercial Property Transactions in India

Plan sanction and the power of attorney are two crucial aspects of commercial property transactions in India. Understanding these terms is essential for buyers, sellers, and investors. This guide provides a comprehensive explanation of plan sanction and power of attorney in the context of commercial spaces in India.

Demystifying Plan Sanction and Power of Attorney in Commercial Property Transactions in India:

  1. Plan Sanction:
    • Explanation: Plan sanction refers to the approval granted by local authorities, such as municipal corporations, for the construction or modification of a property.
    • Approval Process: Property owners or developers must submit detailed building plans, which are reviewed by the authorities to ensure compliance with building codes and zoning regulations.
    • Legal Requirement: Plan sanction is a legal requirement before any construction or alteration can take place.
    • Significance: It ensures that the property is constructed in accordance with safety and zoning norms, protecting the interests of both property owners and the community.
  2. Power of Attorney (PoA):
    • Explanation: A power of attorney is a legal document that authorizes one person (the agent or attorney-in-fact) to act on behalf of another person (the principal) in various legal and financial matters, including property transactions.
    • Types: In property transactions, there are two common types of PoA – General PoA and Special PoA. A General PoA grants broad powers, while a Special PoA restricts actions to specific tasks, like property sale or purchase.
    • Usage in Property Transactions: The PoA holder can sign documents, negotiate deals, and perform other legal functions on behalf of the principal, simplifying property transactions, especially for NRI or absentee property owners.
    • Registration: Property PoAs must be registered to be legally valid. Non-registration can lead to legal complications.
    • Revocation: The principal can revoke a PoA at any time, typically by providing written notice to the PoA holder and relevant authorities.
    • Cautions:* It’s vital for both parties to clearly define the scope and duration of the PoA and seek legal advice if needed.

Conclusion:

Understanding the concepts of plan sanction and power of attorney is crucial when dealing with commercial property transactions in India. Plan sanction ensures that construction and modifications comply with local regulations, promoting safety and legality. Power of attorney, on the other hand, streamlines property transactions, enabling authorized individuals to act on behalf of property owners. Whether you are buying, selling, or investing in commercial spaces in India, a clear understanding of these terms will contribute to successful and legally sound property transactions. Legal consultation is recommended for both aspects to ensure compliance and avoid potential complications.

Labels:

Comments

Post a Comment

Popular posts from this blog

What is Lavani Patta Land?

 In Telangana, there are different types of lands titles that provide land ownership. Here Lands are segregated into Private land and Government Assigned Land, and the land owned by an individual who has Record Of Rights ROR on his name, and has legal land title ownership. Whereas government-assigned land is allotted to any individual who belongs to a BPL Below Poverty Level family to elevate their economic standards is termed as Government Assigned Land. Here it has ownership land title on an individual’s name, but assigned lands cannot be sold or transferred to anyone. To obtain a Lavani Patta one can get it from the Revenue Department of the state. The Chief Commissioner of Land Administration (CCLA) is the chief controlling authority for the revenue administration. Usually, the Tahsildar is the competent authority to assign the lands. Here, 50 percent land is assigned to Schedule Castes, 10 percent to Schedule Tribe, 30 percent to the backward classes, and the res...
Post a Comment
Read more

Top 5 RERA Punishments every buyer must know.

PUNISHMENT PRESCRIBED FOR NON-REGISTRATION OF A PROJECT UNDER THE RERA ACT   ·           10 percent penalty of the estimated cost of the project.   ·          As per section 59, where under the Act, it is obligatory for the promoter to register a project with the Authority, and the promoter fails to do the same, he shall be liable to a penalty of up to 10 percent of the estimated cost of the real estate project.  Non-registration of the project may also liable for 3 years of punishment. ·         However, in the case of the promoter consistently defaults or does not comply with the directions/orders of the Authority as regards registration of the project with the Authority, he shall be liable to an additional fine of ten percent of the estimated cost of the real estate project or imprisonment up to 3 years or both.   Penalty for violation of section 4(App...
Post a Comment
Read more

Understanding the Limitation Act, 1963: A Guide to Legal Timeframes

The Limitation Act, 1963 , is a crucial piece of legislation in India that defines the time limits within which legal actions must be initiated. It aims to ensure that cases are filed within a reasonable period, preventing indefinite delays and maintaining judicial efficiency. Understanding this law is essential for individuals and businesses dealing with legal matters related to contracts, property, civil disputes, and more. What is the Limitation Act, 1963? The Limitation Act, 1963 , sets specific timeframes within which different types of legal proceedings must be initiated in Indian courts. If a lawsuit is not filed within the prescribed time, the right to seek legal remedy may be lost. The law ensures fairness, prevents misuse of legal rights, and promotes legal certainty by barring outdated claims. Key Objectives of the Limitation Act ✔ Prevents Legal Uncertainty – Ensures that claims are made within a fixed timeframe, avoiding prolonged disputes. ✔ Encourages Timely Justice ...
Post a Comment
Read more