In March 2026 a buyer in Bengaluru was offered a plot at a tempting price, on the condition that the sale would be done through a general power of attorney rather than a regular sale deed. It sounded like a technicality, and the discount was real. What the buyer did not know was that a power of attorney, on its own, does not transfer ownership of property, a point the Supreme Court settled years ago. Buying on that basis would have left him holding a document that felt like ownership but was not. Understanding what a power of attorney can and cannot do is one of the most important protections a property buyer has.

The short answer. A power of attorney lets someone act on another person's behalf, but it does not by itself transfer ownership of a property, only a registered sale deed does that. The trade off worth knowing is that a genuine registered power of attorney can legitimately let an owner's agent execute a proper sale deed for you, which is fine, but buying a property as a so called power of attorney sale, in place of a registered sale deed, leaves the title with the seller and exposes you to serious risk.

What is a power of attorney in a property deal?

A power of attorney is a legal document by which one person, the principal, authorises another, the agent, to act on their behalf. In a property context, an owner might grant a power of attorney so that a trusted person can sign documents, attend the registration, or manage the property when the owner cannot be present. A general power of attorney grants broad authority, while a special power of attorney is limited to a specific task, such as executing the sale of one particular property. Used properly, it is a convenience that lets business proceed when the owner is abroad, unwell or otherwise unavailable. The important point is that the power of attorney authorises the agent to act, it does not itself make the agent the owner, nor does handing it to a buyer make the buyer the owner. It is a tool for acting on someone's behalf, not a substitute for a transfer of title.

This distinction is where buyers get into trouble. A power of attorney used to execute a registered sale deed is a normal part of many transactions, but a power of attorney treated as if it were the sale is not, and telling the two apart is essential.

Why can a power of attorney not transfer ownership?

A power of attorney cannot transfer ownership because the law requires immovable property to be conveyed by a registered sale deed, and the Supreme Court has confirmed this squarely. In a landmark ruling, the court held that a general power of attorney, an agreement to sell, or a will does not by itself convey ownership or title, and that only a registered sale deed legally transfers title to immovable property. This means a so called power of attorney sale, where a buyer pays and receives a power of attorney instead of a registered deed, does not make the buyer the legal owner. The title remains recorded in the seller's name at the sub registrar, which is a serious exposure. Because the seller stays on the record, they could in principle sell the same property again to another buyer through a registered sale deed, and that registered deed would take precedence over the earlier power of attorney arrangement. This is not a theoretical risk, it is the very danger the court sought to close. Buyers were once drawn to these arrangements because they appeared to save on stamp duty and registration, but that apparent saving is illusory when the outcome is a property you do not legally own. What looks like a discount is in truth the price of an incomplete transfer, and the shortfall tends to surface at the worst moment, when you try to sell, mortgage or defend your claim.

What does each document actually do?

Reading the documents side by side shows why only one of them makes you an owner. The table below sets out what a registered sale deed, a power of attorney sale, a genuine registered power of attorney and a possession based defence each do for a buyer.

The lesson from the table is simple. Insist on a registered sale deed as the document that makes you the owner, and treat any power of attorney only as a means by which the true owner's agent signs that deed, never as a replacement for it.

When is a power of attorney legitimate to rely on?

A power of attorney is legitimate to rely on when a genuine owner has granted a registered power of attorney to an agent to execute a registered sale deed on their behalf. In that situation the agent signs the sale deed for the owner, the deed is registered, and title passes to you in the normal way, with the power of attorney simply explaining the agent's authority to sign. What makes this safe is that a registered sale deed still sits at the heart of the transaction. The checks that matter are that the power of attorney is registered, is current and has not been revoked, that the principal is alive at the time of the sale, since a power of attorney generally ends on the principal's death, and that the agent's authority actually covers selling the property. Our guide to reading the clauses of your sale deed covers the document that must anchor any such purchase.

How does this fit your title checks?

The power of attorney question sits within the wider work of verifying title before you buy. A sound purchase traces the chain of ownership, confirms the seller is the true owner, and ends in a registered sale deed in your name. A power of attorney appears in that chain only as a signing authority, so if a seller offers a power of attorney in place of a clear title and a registered deed, that is a signal to slow down and verify, not to accept a discount. Reading the power of attorney alongside the title documents keeps you from mistaking authority to act for ownership. A buyer who insists on the registered sale deed, checks the title chain, and treats any power of attorney with appropriate caution avoids the trap that catches those tempted by a cheaper, informal route. It is worth being especially wary when a seller is unusually keen to avoid a registered sale deed, because that reluctance often points to a title problem the deed would expose. A clean sale has no reason to shy away from registration, so a push toward a power of attorney route is itself a reason to dig deeper rather than to hurry. Our guide to the mother deed and the chain of title covers the ownership trail that a power of attorney can never replace.

How do you handle a power of attorney, step by step?

Treat a power of attorney with care whenever it appears in a deal. These steps keep it in its proper place and protect your title.

1. Insist on a registered sale deed as the document that transfers ownership to you.
2. Never buy a property as a power of attorney sale in place of a registered deed.
3. If the seller signs through an agent, confirm the power of attorney is registered.
4. Check the power of attorney is current and has not been revoked.
5. Confirm the principal is alive, since a power of attorney usually ends on death.
6. Verify the agent's authority actually covers selling the specific property.
7. Trace the title chain and confirm the true owner before you pay anything.

Run these checks on the specific property and documents you are handed. A buyer considering a home such as Sobha Liora in Whitefield should ensure the purchase ends in a registered sale deed in their own name, so ownership rests on the deed rather than on any power of attorney.

Frequently asked questions

Can a power of attorney transfer property ownership?

No. A power of attorney authorises an agent to act on the owner's behalf, but it does not by itself transfer ownership. The Supreme Court has held that only a registered sale deed legally transfers title to immovable property, so a power of attorney cannot make either the agent or a buyer the legal owner.

Is buying property on a power of attorney safe?

Buying a property as a power of attorney sale, in place of a registered sale deed, is not safe, because the title stays recorded in the seller's name and they could sell it again through a registered deed that would take precedence. A power of attorney is safe only as the authority by which an owner's agent signs a proper registered sale deed.

What is a GPA sale and why is it risky?

A so called GPA sale is where a buyer pays and receives a general power of attorney instead of a registered sale deed. It is risky because it does not convey title, the owner remains on record, and the property could be sold again to another buyer whose registered deed would prevail. Only a registered sale deed makes you the owner.

When can I rely on a power of attorney in a purchase?

You can rely on it when a genuine owner has granted a registered power of attorney to an agent to execute a registered sale deed for them. Confirm the power of attorney is registered, current and unrevoked, that the principal is alive, and that the authority covers selling the property, with a registered sale deed still at the centre of the deal.

The legal position in this guide reflects the Supreme Court's ruling that only a registered sale deed transfers title, summarised in this explainer on the Supreme Court judgment on power of attorney sales. Because the application to your case depends on the documents, always have a property lawyer verify the title and the power of attorney before you commit.

Last updated 2026-08-13. PropNewz Team.