• GPA holder can sell the property

Hi 
I am going to buy a flat in Hyderabad. Builder make and registered the GPA to person "A". Builder told me he given all the rights to GPA "A" to sell the flat. Now both Builder and GPA "A" ready to sell the flat to me. Here Builder told me sale deed will be sign by GPA "A" and Builder will sign as a witness.

Please suggest me can GPA "A" sell the property me,  since SC gives the order in 2011 that GPA can't sell the property.
Asked 2 years ago in Property Law from ,
1) is GPA relative of the builder? Any registered property owner can execute a GPA in favour of their spouse, son, daughter, brother, sister or any other relative  to manage his property or empowering him to execute any further deed of transfer including conveyance, sale and gift deed".

2) GPAs are not valid transfers of ownership. Only registered sale deeds are.

3) An attorney holder may however execute a deed of conveyance in exercise of the power granted under the power of attorney and convey title on behalf of the grantor.
Ajay Sethi
Advocate, Mumbai
24832 Answers
1334 Consultations
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GPA continues to serve its purpose, the court said its judgment will not affect the validity of sale agreements and powers of attorney executed in genuine transactions. "For example, a person may give a power of attorney to his spouse, son, daughter, brother, sister or a relative to manage his affairs or to execute a deed of conveyance." 

The court further said that a person can enter into a development agreement with a land developer or builder for developing the land either by forming plots or by constructing apartment buildings. In that connection he can execute an agreement of sale and grant a power of attorney that will allow the developer to further sell the property to prospective purchasers


 

Going into the legality of such transfers, the  supreme  court said any contract of sale which was not a registered sale deed would fall short of the requirements of the relevant provisions of the Transfer of Property Act and could not confer any title.

The court said a transfer of property by way of sale could only be by a sale deed. "In the absence of a deed of conveyance (duly stamped and registered as required by law), no right, title or interest in an immovable property can be transferred," the bench said
Ajay Sethi
Advocate, Mumbai
24832 Answers
1334 Consultations
5.0 on 5.0
1. Well when was the GPA is registred. If it is before the passing of the decision of supreme court in October, 2011 then there is no problem.
2. However when the builder is signing the document then ask him to do so as confirming party and not as a witness.
3. If builder signs as a party to the deed then go for it.
Devajyoti Barman
Advocate, Kolkata
5899 Answers
63 Consultations
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1) please note that SC has held  that a person can enter into a development agreement with a land developer or builder for developing the land either by forming plots or by constructing apartment buildings. In that connection he can execute an agreement of sale and grant a power of attorney that will allow the developer to further sell the property to prospective purchasers


2) in your case builder has executed POA in favour of third party . ask builder to execute sale deed in your favour or act as confirming party
Ajay Sethi
Advocate, Mumbai
24832 Answers
1334 Consultations
5.0 on 5.0
Then merely acting as witness will not do. He will have to join as a party to the deed.
Devajyoti Barman
Advocate, Kolkata
5899 Answers
63 Consultations
4.9 on 5.0
Hi, if the GPA is registered and in the GPA  holder has power to sell then the GPA is valid and you can register the sell deed on behalf of the GPA Holder.
Pradeep Bharathipura
Advocate, Bangalore
4161 Answers
141 Consultations
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1. GPA holder can act for and on behalf of the buider if he is related to the builder,

2. In the above case the sale proceeds should be deposited with the account of the builder and not the GPA holder,

3. Without satisfying the above conditions, the sale conducted by the GPA holder is invalid.
Krishna Kishore Ganguly
Advocate, Kolkata
12733 Answers
263 Consultations
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1. Such sale will be invalid,

2. Insist the builder to execute and register the sale deed,

3. Even if the builder has executed a POA in favour of the said third party, he can execute and register a Sale Deed in your favour.
Krishna Kishore Ganguly
Advocate, Kolkata
12733 Answers
263 Consultations
5.0 on 5.0
1. It is permissible for the GPA holder to act on behalf of the builder if he is related by blood to the builder, which is not the scenario in your case.

2. You should thus ask the builder to execute the sale deed in your favour. Purchase the property only if the builder executes the sale deed in your favour lest you are entangled in litigation subsequent to the purchase which may result in your title being held imperfect by the court. 

3. That the builder has executed a GPA in favour of some one does not stop him from registering the sale deed in your favour.
Ashish Davessar
Advocate, Jaipur
18884 Answers
473 Consultations
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builder can register sale deed in your favour . no need for GPA to act as party in sale deed 

that is the best option
Ajay Sethi
Advocate, Mumbai
24832 Answers
1334 Consultations
5.0 on 5.0
Yes builder can execute the sale deed in your favour even if he has executed a GPA in favour of some one. If the builder executes the sale deed the GPA holder will have no role to play.
Ashish Davessar
Advocate, Jaipur
18884 Answers
473 Consultations
5.0 on 5.0
1. The builder should execute and register the sale deed in your favour,

2. Do not involve the GPA holder.
Krishna Kishore Ganguly
Advocate, Kolkata
12733 Answers
263 Consultations
5.0 on 5.0
Hi, if the builder is ready and willing to register the sale deed in your name and presence of the GPA holder not necessary.
Pradeep Bharathipura
Advocate, Bangalore
4161 Answers
141 Consultations
4.3 on 5.0

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