• Can a registered GPA sell the property

I have some questions again.
1) 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. Builder and GPA holder don't have any blood relation and this GPA deed is signed in 2013.
Recently I checked with LIC Hosing lawyer from where I am going to apply home loan. After checking the Sale agreement and GPA document, he told me, GPA holder having full rights of sell for this flat. There is no need for builder to sign the sale deed.
Can I still ask Builder to sign the deed as confirming party, will LIC housing will raise any issue on this.

2) And when I checked the EC of this flat online I found this flat is showing under GPA holder name even without Sale deed.
So what does it mean?

3) When I checked about occupancy certificate of the flat, Builder told me this comes under Panchayat and Panchayat don't have rights to issue occupancy certificate. Instead he will give the possession certificate and based on possession certificate you can file the property taxes and this is valid.

Could you please advise me on these three points.
Asked 2 years ago in Property Law from Hyderabad, Andhra Pradesh
1)builder has to sign sale deed in favour of purchaser . 

2) A cannot sell  flat  to you . mere signing of builder as witness wont suffice . 


3) builder can give power of attorney only  in favour of relative . please note that 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".


4) flat cannot appear in name of GPA holder without sale deed . inorder for GPA to be lawful owner of flat sale deed is necessary . 

5) occupation certificate is issued by muncipal corporation . if  construction of building has been approved by panchayat check whether building has been constructed as per sanctioned plans .completion certificate has been issued by panchayat or not 

6) contact a local lawyer
Ajay Sethi
Advocate, Mumbai
23206 Answers
1218 Consultations
5.0 on 5.0
Hello,

The legal advice you have from the LIC is right.

1) If the GPA is registered and duly stamped GPA holder has the power to execute the Sale Deed.

2) The Builder does not have to sign as a confirming party or a witnesss as it has no relevance since he has executed a registered GPA.

3) When you checked the EC if you found that the entry of GPA registration , it means that there is a registered Power of Attorney in place and the GPA holder is not executing on his behalf but on behalf of the builder whose GPA he is and hence in all legal aspects the sale is between you and the Builder.In other words builder is the seller and you are the purchaser.

4) The local body government that administer to your area is vested with the right to provide you with the occupancy certificate  and the builder has to get it facilitated by paying requisite charges. Municipal Corporation has authority if you are residing in a municipality and if it is a village it comes under the Panchayat.
S J Mathew
Advocate, Mumbai
1950 Answers
65 Consultations
5.0 on 5.0
Hi, if the GPA Holder has the power to sell the flat then GPA holder can sell the property  to a third parties.

2. If the builder is witnessed as  a consenting witness then also well and good.

3. when the property comes under panchayath jurisdiction then it has jurisdiction to Possession certificate.

4. It is my sincere advice better once you get the documents verified from the local advocate and get the opinion from him so that you will not be in trouble tomorrow.
Pradeep Bharathipura
Advocate, Bangalore
4104 Answers
133 Consultations
4.3 on 5.0
1. If the POA has been registered and confers on the GPA holder the express authority to sell the property then the GPA holder can sell the property.

2. The builder is not required to sign either as a confirming party or witness if the POA has been validly executed. Purchaser gets absolute title if the POA has been validly executed and the sale is made in the manner envisaged by the law. 

3. If GPA holder sells the property without any legal authority to do so the title would be deemed to be not clear. 

4. The reflection of GPA holder's name in EC shows that a POA has been made in his favour and that GPA holder is acting on behalf of the builder. The sale will be effected by the power of attorney holder on behalf of the owner. Such power of attorney must be properly stamped and registered. It should also not be revoked.

5. Get the POA vetted by a lawyer before purchasing the property.
Ashish Davessar
Advocate, Jaipur
18094 Answers
448 Consultations
5.0 on 5.0
1. As per the judgement passed in the year 2013 by the Supreme Court, property can be sold with the help of GPA executed in favour of a non relative. This was to stop evasion of payment of stamp duty during the first sale,

2. Insist that the flat owner should sign as the Vendor,

3. It is strange the title of the flat is being shown as the  GPA holder's name when there is no sale deed in his vaour,

4. Check from the Panchayat whether they issue any completition certificate and also whether they sanction construction plan or not. Get the construction checked with the plan, if issued.
Krishna Kishore Ganguly
Advocate, Kolkata
12104 Answers
230 Consultations
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1)in kaanoon.com we have advise you to play safe . take all precautions before entering into any transaction for purchase of flat . 

2) after all it is your lifetime savings which are being used for purchase of flat . 

3) these days builders are unable to sell flats and there is substantial  oversupply in market . 

4)hence if you request builder to execute sale agreement for purchase of flat he should not have any objection to same . 

5) we cannot comment as to why LIC housing finance is not insisting on sale agreement being executed by builder . 

6) if GPA had been executed by builder in favour of relative and it was duly stamped and registered GPA could sell flat to you
Ajay Sethi
Advocate, Mumbai
23206 Answers
1218 Consultations
5.0 on 5.0
you had raised this query earlier too wherein experts on this site had advised you to get builder to execute sale deed in your favour .
Ajay Sethi
Advocate, Mumbai
23206 Answers
1218 Consultations
5.0 on 5.0
Hi, worgly misunderstood the judgement of the Supreme Court where Supreme court held  under what circumstances the evidence of the GPA holder is in admissible and secondly transfer of property by way of GPA or will when it is void in order to avoid stamp duty payable to state.
Pradeep Bharathipura
Advocate, Bangalore
4104 Answers
133 Consultations
4.3 on 5.0
1. Agreement of sale and General Power of Attorney are two different documents which create different rights. 

2. If the builder enters into an agreement for sale in his personal capacity he alone can complete the transaction of sale.

3. You can purchase the property directly from the builder if you harbour any insecurities. 

4. Execution of GPA in favour of GPA holder does not preclude the builder from directly selling the property to you. 

5. We have told you the law of the land, but only LIC can comment on why it is acting in a particular manner. 

6. You are misinterpreting the SC ruling. Sub-registrar cannot refuse to register the sale deed when presented by the GPA holder.
Ashish Davessar
Advocate, Jaipur
18094 Answers
448 Consultations
5.0 on 5.0
1. If LIC lends you money accepting the sale through GPA, LIC can not be legally held responsible for lending you money by you. It is the LIC management who will question the concerned person,

2. You have availed loan by executing various documents for which you shall have to repay it without blaiming the lender,

3. Similarly te Registrar can not be held responsible for registering a sale deed which was executed illegally despite the order of the Apex Court,

4. Moreover, what is the need to buy the property through the GPA holder knowing fully well that you will be in legal trouble later on,

5. The owner can very well execute and register the sale deed in your favour which will be perfectly valid,

6. Let the owner settle the matter with his POA holder.
Krishna Kishore Ganguly
Advocate, Kolkata
12104 Answers
230 Consultations
5.0 on 5.0
A. Once the power is delegated to another by delivering, selling power it duly stamped and register the same to complete this task.

B. GPA holder signature on the Sale Deed is sufficient as rightly pointed out by the LIC and in case, if you get the builder as consenting witness is well and good.

C. Sub Register has power to inspect the document or deed under the ministerial act not beyond the jurisdiction and you have got misunderstand in respect of SC verdict on GPA. This verdict's intention to protect the stamp duty in favor of the Government.
B.T. Ravi
Advocate, Bangalore
736 Answers
29 Consultations
5.0 on 5.0

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