New Delhi: The Supreme Court has given a big decision regarding the transfer of title of property. The court has clarified that to transfer the title of a property, it is necessary to have a registered document. According to the court, a mere sale agreement or power of attorney cannot be considered sufficient for title transfer.
The court was hearing a case involving a dispute over a property in Delhi. The petitioner claimed that he was the owner of the property and that the property was given to him as a gift deed by his brother. He also claimed that he had possession of the property.
The respondent, on the other hand, challenged the petitioner’s claim and asserted that he had the power of attorney, affidavit, and agreement to sell in his favor. He argued that these documents were valid and that he had the right to the property.
The court rejected the respondent’s claim and upheld the petitioner’s appeal
The Supreme Court rejected the respondent’s claim and upheld the petitioner’s appeal. The court said that under the Registration Act 1908, property can be owned only if there are registered documents. The court cited the provisions of the Act, which state that any document that purports or operates to create, declare, assign, limit, or extinguish any right, title, or interest in immovable property of the value of one hundred rupees and upwards, shall be registered.
The court also referred to its previous judgments, which have held that the sale agreement or power of attorney does not convey any title to the property. The court said that these documents are only modes of contract and that the actual transfer of title takes place only by a registered deed of conveyance.
The court, therefore, concluded that the respondent did not have any title to the property and that the petitioner was the rightful owner. The court also directed the respondent to vacate the property and hand over the possession to the petitioner.
The difference between power of attorney and agreement to sale
Power of attorney is a legal authority that is given by the owner of a property to another person. By getting power of attorney, that person can make decisions related to the purchase or sale of that property. But this is not ownership of the property at all. Power of attorney can be revoked by the owner at any time and it does not create any interest in the property.
An agreement to sale is a document in which all the details related to the property are decided between the buyer and the seller. In this, all the information about the price of the property and full payment is recorded. Agreement to sale is a contract between the parties and it does not transfer any title in the property. Agreement to sale is only a promise to execute a registered deed of conveyance in the future.