Power of Attorney in Property Deals: Legal Validity and Risks

How powers of attorney work in Pakistani property transactions, the difference between general and special PoA, and the fraud risks involved.

A power of attorney (PoA) authorises someone to act on your behalf. In property matters, there are two types: General PoA (broad authority over all property affairs) and Special PoA (limited to a specific transaction). The Supreme Court has held that property cannot be sold through a General Power of Attorney alone — a registered sale deed is still required (2019 SCMR 1234). PoA fraud is the most common form of property fraud against overseas Pakistanis. Always use a Special PoA executed at a Pakistani Embassy, limited to the specific property and transaction, and with a clause requiring the attorney to produce biometric verification.

Property law in Pakistan is complex because it sits at the intersection of multiple legal systems: the Registration Act 1908, the Transfer of Property Act 1882, provincial land revenue codes, local development authority regulations, and Islamic personal law for inheritance matters. Each province has its own stamp duty rates, registration fees, and procedural requirements. The situation is further complicated by the parallel existence of several record-keeping systems: the Sub-Registrar's registration record, the Patwari's revenue record (Fard), and the development authority's allotment record (for planned housing societies).

For overseas Pakistanis, property transactions carry additional risks because they must rely on agents or family members to manage the physical aspects of the transaction. Power of attorney fraud is a significant concern. LexForm advises overseas clients to use irrevocable special powers of attorney (limited to the specific transaction), conduct independent title verification before committing funds, and use secure banking channels for all payments.

How LexForm Can Help

LexForm provides comprehensive property law services including title verification, transaction documentation, mutation coordination, and litigation. We represent clients before civil courts, rent controllers, revenue courts, and the Board of Revenue. For overseas Pakistanis, we handle the entire process through power of attorney. Contact us at info@lex-form.com or WhatsApp +92-323-2999999 for a free consultation.