• G.P.A executed during non-alientation period

Hi,

I have booked a flat under construction. The sale deed executed and other documents look fine but in the sale deed there is previous owner along with his GPA who have sold it to present owner.

As pointed out by my lawyer, the original G.P.A. was executed by original owner  in '96, during an non-alienation period of 15 years. Hence she says it can't be valid.
Now 17 years passed , so far , state govt. has not questioned this G.P.A. 
Lawyer says state govt. can do it another 13 years but chances are less.

Title flow is like this :-
Karnataka Govt. grants land to Mr. X in 1982 with a non-alienation period of 15 years.
1996 - Mr. X, on the grounds that he is not able to take care of this land,  executes a GPA to Mr. Y .
1997 - Non-alienation period ends.
2004 - Mr. X along with his attorney Mr. Y sells this land through a registered sale deed.
2013 - A confirmation deed is executed by all stakeholders including original owner.

The builder has given me the explanation that by means of confirmation deed , the owner has ratified the G.P.A. and sale deed executed earlier.

I am looking for a second opinion how much risk is there in going ahead with this deal. There are 416 apartments coming up on this land and I have not heard any such issue from co-owners. Public Sector banks have also approved this project.

Thanks,
Vipul
Asked 2 years ago in Property Law from Bangalore, Karnataka
1. Since the GPA dealt with mere management of the property only and not with regard to transfer of the saame it does not violate the rule of alienability.
2. More importantly the property was transferred on 2004 long after the said clause on non-alienability expired.
3. There is no irregularity in the title and you can proceed to buy the same.
Devajyoti Barman
Advocate, Kolkata
5207 Answers
54 Consultations
4.9 on 5.0
Hi, in the above case even though the GPA has been executed but no sale was made during the that period and sale of the property was taken place in the year 2004  so i don't think is no irregularities but it is better check in the GPA whether there is sale clause or not  and i don't think the title of the property will  be effected.
Pradeep Bharathipura
Advocate, Bangalore
4105 Answers
133 Consultations
4.3 on 5.0
Hello,
1) The GPA given to X in itself can not be disputed as he was only only a guardian in that capacity and the non-alienation issue would not impact the entire case as the property was never alienated during the alienation period.

2) Now that the sale and a confirmation Deed has sealed the whole issue of validity of the transaction as the GPA still holds good.

3) I don't see any obvious risk in your going ahead with the deal.

4) It would however be advisable to get a title search done to determine the current status of ownership before you commit.
S J Mathew
Advocate, Mumbai
1950 Answers
65 Consultations
5.0 on 5.0
1) it is necessary to go through the documents cited by you to advice .

2) however from facts stated by you sale of property has taken place only in 2004 ie more than after 15 years lock in   expired . 

3) under circumstances Mr Y was authorised to execute sale deed as GPA of X . 

4) further deed of confirmation has been executed by original owner 

5) the title to property appears to be clear and marketable . 


6)before you purchase flat get all documents vetted by a local lawyer
Ajay Sethi
Advocate, Mumbai
23240 Answers
1219 Consultations
5.0 on 5.0
Earlier it used to be the usual practice in Karnataka of executing the GPA in favour of the buyer, since the lock-in period was subsisting at that point of time and after the end of non-alienation period, the original owner would have executed sale deed in favour of the attorney.

By executing the confirmation deed by all stake holders, including the original owner, the title to the property appears to be clear.  However the correct stand can be taken after perusing all the documents connected to the property.
Shashidhar S. Sastry
Advocate, Bangalore
1240 Answers
59 Consultations
5.0 on 5.0
2004 - Mr. X along with his attorney Mr. Y sold the subject land through a registered sale deed,so verify whether Mr.X got prior permission of government to sell the land to a third party after the  non-alienation period,the prior permission is mandatory in case of such land.Otherwise, the title is clear.

Thanking you,
Subash M R
Advocate, Bangalore
176 Answers
8 Consultations
3.6 on 5.0
1. The land was sold in 2004 i.e 7 years after the lock in period expired. So Mr.Y was authorized to execute the sale deed as the attorney of X.

2. The GPA executed in 1996 was only for the management and not the sale of the property. As a corollary thereto, the execution of GPA did not contravene the principle of alienability. The confirmation deed has further made the transaction legally valid.

3. The title seems clear and marketable. You can proceed to purchase the property.
Ashish Davessar
Advocate, Jaipur
18102 Answers
448 Consultations
5.0 on 5.0
A. When the owner of property transfers it willingly, it is voluntary alienation. It may be made in three ways, (i) for consideration, e.g. by sale, mortgage, lease or exchange, (ii) by gift, and (iii) by will. So in your case, if the landowners executed a GPA by way of registration for the purpose of the alienation of the property. In such being, it is a complete violation of the Government norms and the GPA will be invalid. But, if the GPA was executed only to manage and maintain the land, then only GPA would be valid.

B. After the execution the GPA, Confirmation deed was executed by the landowners with respect to the land. Hence, land's confirmation deed would be valid.

C. In your case, the Sale Deed was executed in the year 2004, hence it will be valid subject to A point, kindly contact local advocate to know the perfect answer by showing all legal documents.
B.T. Ravi
Advocate, Bangalore
736 Answers
30 Consultations
5.0 on 5.0
1. What was cmentioned in the said GPA is required to be seen,

2. However, since the sale took place after the alienation period was over and also as the said sale was later on confirmed by the owner, the said sale appears to be a legally valid sale.
Krishna Kishore Ganguly
Advocate, Kolkata
12113 Answers
231 Consultations
5.0 on 5.0

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