• If one of the two principals die, will the GPA be binding on the living principal?

I intend to purchase an apartment from a builder. The builder has obtained the land from two brothers A & C and one sister B to construct a multi storied building there. Following are the salient features of the deal.
1)	The land is owned by the mother of the said A,B & C(deceased long back). A, B & C received the land through inheritance (their father also deceased)

2)	The builder entered into a sale agreement with A(brother) & B(sister) (notarized & registered) - with consideration amount of Rs 6,80,000/- being paid to A & B (here A sells his complete portion-960 sq ft and B sells her half share 480 sq ft 

3)	The builder entered into a development agreement with A & B (notarized)

4)	This was followed by a revokable registered GPA with B(sister) & C(brother) for the purpose of construction, development and sale of apartments (for B's half share & C's full share) -it is mentioned in the agreement that POA is granted without any consideration 

4)	Now C passed away 3 years back

5)	The builder enters into new GPA(notarised & registered) with the heirs of C only and has not included B in this new GPA.
He also entered into development agreement(notarised & registered) with the heirs of C only.

1)Does the GPA with B also gets cancelled on death of C as they jointly entered into agreement with builder?
2)Is it compulsory to once again get GPA registered with B?
3)Does this represent any legal threat to me as a potential buyer of an apartment in the property as B is not ready to sign?
4)Will a notarised GPA of 2013 with B work in this case, or it has to be compulsarily registered?
Please share relevant documents if available. 

Thanks.
Asked 4 years ago in Property Law
Religion: Hindu

First answer received in 10 minutes.

Lawyers are available now to answer your questions.

11 Answers

1) GPA with B continues even on demise of C

2) not necessary to re register GOA with B

3) once GPA is executed by B you can purchase property from builder

4) GPA needs registration

Ajay Sethi
Advocate, Mumbai
87939 Answers
6207 Consultations

5.0 on 5.0

Hello,

Kindly share the entire GPA.

If one of the person has died who was a joint part in the GPA then a fresh GPA will have to be entered with B.

It has to be a registered one.

Regards

Anilesh Tewari
Advocate, New Delhi
17940 Answers
377 Consultations

5.0 on 5.0

1)Does the GPA with B also gets cancelled on death of C as they jointly entered into agreement with builder? ---- No , with c only.

2)Is it compulsory to once again get GPA registered with B? -- No, previous one valid in context to B.

3)Does this represent any legal threat to me as a potential buyer of an apartment in the property as B is not ready to sign? --- No

4)Will a notarised GPA of 2013 with B work in this case, or it has to be compulsarily registered? - valid.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

1. B and C have signed development agreement with builder

2. So development rights are granted to builder to do construction including selling units of new building

3. POA is granted for purpose of obtaining various development permissions in the name and on behalf of owners

4. B is not required to sign the sale agreement between you and builder

5. Builder signs agreement for selling unit to buyer in which owner is not required for signing since builder already has development rights and to sell flats. So B is not required to sign

6. If one grantor dies, the power of attorney still remains valid for the living grantor

7. Even if C is dead, his legal heirs are bound by the development agreement signed with builder

Yusuf Rampurawala
Advocate, Mumbai
6882 Answers
79 Consultations

5.0 on 5.0

1) GPA executed by C comes to an end on his demise

2) but GPA executed by B coninues

Ajay Sethi
Advocate, Mumbai
87939 Answers
6207 Consultations

5.0 on 5.0

1)Does the GPA with B also gets cancelled on death of C as they jointly entered into agreement with builder?

If the GPA is clubbed with interest, then it is irrevocable, but since you said that there was no consideration then the GPA will be revoked or cancelled automatically upon the death of even one of the principals.

2)Is it compulsory to once again get GPA registered with B?

Yes.

3)Does this represent any legal threat to me as a potential buyer of an apartment in the property as B is not ready to sign?

You have to discuss with your advocate on this by producing the property related papers for an opinion before buying it.

4)Will a notarised GPA of 2013 with B work in this case, or it has to be compulsarily registered?

The registration in respect of immovable property is compulsory.

T Kalaiselvan
Advocate, Vellore
78097 Answers
1543 Consultations

5.0 on 5.0

When I approached Bank of Baroda for home loan, they made this point that GPA has again to be made with B also as C died and both of them entered into a single agreement with builder, so if one dies, the GPA stands cancelled for both . If GPA is not again required in case of B, can you please provide some relevant documents?

The bank is right in its instructions to obtain GPA again from B also

T Kalaiselvan
Advocate, Vellore
78097 Answers
1543 Consultations

5.0 on 5.0

POA coupled with consideration cannot be revoked

2)after you purchase flat and POA is revoked it would not affect registration of flat done in your name

3) if any claim is made you would be protected by indemnity clause in your sale deed

4) you can sue seller to recover your money with interest

Ajay Sethi
Advocate, Mumbai
87939 Answers
6207 Consultations

5.0 on 5.0

1. B has already executed development agreement and received consideration

2. So why will B object?

3. The flat is being sold to you by builder. So the contract is between you and builder. B does not come in the picture

4. Builder is selling flats from his share. Not from B's share of flats in new building

Yusuf Rampurawala
Advocate, Mumbai
6882 Answers
79 Consultations

5.0 on 5.0

1. You take a legal opinion from a local lawyer by producing all the relevant papers before him/her and then proceed.

2. If she claims her share then she may fight it legally wherein you may have to contest the litigation to protect your interests.

3. There is no time limit for filing partition suit.

4. It will depend on the decision of the court when the case is disposed.

T Kalaiselvan
Advocate, Vellore
78097 Answers
1543 Consultations

5.0 on 5.0

GPA in which there is interest in subject matter and for which consideration is paid is sometimes valid after the death of executor. The intention of GPA should not frustrate even after the death of the executor. But the accurate opinion can only be given after refering the GPA itself. GPA in which interest of immovable property is present needs to be registered. You can only invest when position is clear else it will crop litigation for you.

Prashant Nayak
Advocate, Mumbai
27267 Answers
88 Consultations

4.4 on 5.0

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer