Sir, you can authorize a person through GPA to transfer/ sale the property ... It's legal and valid.. But for registered GPA again you have to be present here in India ..
Use of GPA/SPA by friend for plot sale in Bengaluru (2nd owner)
Dear Lawyers, I am asking a question with regards to GPA/SPA for the sale of my plot. I have a site in Bengaluru, I am the second owner. Due to some personal reasons I am unable to travel to India in the coming months but I have a customer who is willing to buy and register my plot in his name. Can I get a GPA/SPA for conducting this sale by my friend's father who is based in Bengaluru? I know a friend who did a GPA sale last year, but I am not sure of the law as someone told me it should be a relative only. I was also told that if its a plot and its a second sale Bengaluru does not allow GPA sale unless its a relative. I am a bit discouraged as it is hard to find a customer in this economy so I though of seeking advise from the experts. Looking forward to your inputs. Thanks in advance.
Asked 6 years ago in Property Law
Religion: Christian
First answer received in 30 minutes.
Lawyers are available now to answer your questions.
7 Answers
Hi, if you want to execute GPA to Non blood relatives / friends then it must register and you have to pay the stamp duty on market value then only it is valid GPA.
SPA should be executed in favour of relative authorising him to sell the property
2) As per Article 48 of the Maharashtra Stamp Act, the stamp duty payable on a specific PoA authorising to sell or transfer immovable property, without consideration when given to a close relative like parents, siblings, children, etc, shall be Rs 500
3) If it is executed in favour of a person other than a close relative, authorising him to transfer (or sell) the immovable property, the stamp duty payable is the same as that on the sale of property. Any PoA granted to a person for sale of an immovable property will have to be compulsorily registered with the applicable sub-registrar of assurances, failing which it cannot be put to use
1. If you execute GPA/SPA in favour of a blood relative, the stamp duty & registration charges are very less, but if you execute GPA/SPA in favour of your friend's father, then the stamp duty will be around 5% of the value of the property.
2. Based on the answer given above, it can be inferred that GPA/SPA can be executed by the Principal in favour of the Attorney and the Attorney may or may not be relative of the Principal.
GPA/SPA executed in favour of a friend or third party other than a blood relative will attract stamp duty and therefore it must be avoided.
You will have to execute the GPA in favour of your friends father in Singapore and get the document duly attested at the Indian Embassy, after which this document must be duly adjudicated in Bangalore for it to be used there otherwise it becomes a document executed outside india and therefore cannot be used in India unless duly adjudicated. The necessary stamp duty must be paid by the Attorney in India, at Bangalore.
1. Sale of real estate through GPA holder has been ordered against by the Supreme Court in the year 2012 while passing order in case of Surya Lamps ....Vs..............State of Haryana.
2. This has been done to stop evading payment of stamp duty by selling plot issuing GPA.
3. GPA for such sale is allowed in cases where GPA it is not issued to any promoter/builder and the reasons for issuing such POA can be proved.
4. You can very well argue that you have issued the POA since you are not in a position to come to India when required for registering the sale deed of the property since you stay abroad.
There is nothing wrong in executing a GPA/SPA in favor of a friend who is not a relative for the purpose of selling the immovable property.
The legal requirement is that the GPA/SPA needs to be registered before the concerned registrar to enable the power agent to sell the property by executing a registered sale deed.
Many people will be telling many stories about such things, you use your own prudence and go ahead with your proposal.
