Buying a Flat from Godrej in Bengaluru – Is The Power of attorney to builder Clause Normal?

[User_2d3b071c]

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User_2d3b071c
PARTICIPANT
February 28, 2025 at 10:25 am

I’m in the process of buying a flat from Godrej in Bengaluru. The project is still under construction, and I recently went through the Agreement of Sale document. One particular clause stood out to me-if I default on any installment payment, the builder has the full right to cancel the agreement. And they are making me sign power of attorney where I give rights to builder to sign on cancellation agreement on my behalf if I default on payment.
Has anyone else come across such clauses in their agreements? Is this standard practice in Bengaluru real estate?
Also, if any lawyers are here, l’d really appreciate your insights on whether this is legally fair or if I should push back.

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[Happyshark11]

H

Happyshark11
PARTICIPANT
February 28, 2025 at 12:35 pm

No, a builder cannot make you sign power of attorney for any purpose. If a builder wants to terminate the agreement, it has to strictly be as per the Termination Clause (default in loan repayment can also be a ground). However, it is not legal for them to take a power of attorney for this purpose.

Check the Model Agreement for Sale set by the RERA in your state for more clarity on this issue. If the builder insists on getting Power of Attorney from you, then you can either approach RERA or Consumer Court for relief.

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[Karthikguru101]

K

Karthikguru101
PARTICIPANT
February 28, 2025 at 4:07 pm

Godrej is B tier semi rowdy builder. The power of attorney is not the only thing. They relinquish the common open space to BBMP. So in the long run anyone can enter your society.

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