A property in Chennai, owner with housing loan has given power of attorney to another man. Who should sign?

I wish to buy a house in Chennai, House Owner with still some loan amount pending with pvt. bank has registered power of attorney with Mr.X. and Mr.X has contacting me and I am moving with the same pvt. bank for loan. There is a query with the bank now that power of attorney is not valid as still there is loan. How to go about?

3 Replies to “A property in Chennai, owner with housing loan has given power of attorney to another man. Who should sign?”

  1. I’m not a lawyer so this isn’t legal advice, just my business experience.

    First make sure Mr. X clearly has the “power to communicate, negotiate” with the lender on the specific property or on any loans of the principle at that bank according to the power of attorney. Does he have ALL the powers he needs?

    Plan A)
    If there is no objection to a title company, then use a title insurance company.
    Reason 1: You are protected from power of attorney fraud.
    Reason 2: The bank with trust the title insurance company over you two guys.

    Plan B)
    1) Get the lender to honor the power of solely for obtaining/releasing loan information. I’m sure they’ll honor it for that because they honor simple letters for that.
    2) Then get the bank to honor the power of attorney for other reasons. If they still object then ask what in particular they don’t like about the power of attorney. If you still can’t convince them to honor it then ask them to put their objections into writing.


  2. Bank is wrong.

    Power of Attorney can be granted even there is a loan pending. Attorney has to make arrangements for closing loan and sell.

    meaning of power of Attorney is to deal with a matter on behalf of Principal. Ownership rights are not transferred to attorney. Which bank is that making such invalid query?

  3. I have gone through your query.All the title deeds of the property has to be gone trough and the veracity of POW should also to be gone through in order to arrive a valid tilte of the property and its marketability.
    I am a Lawyer.

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