GPA holder can receive sale consideration on behalf of the principal if duly authorised by GPA
Does GPA holder have the right to take registration/agreement amount
Hello sir, I am the resident of Andhra Pradesh. I want to purchase a property in Andhrapradesh itself. But the owner of that house is living in foreign country right now. The owner is telling that he'll give GPA rights to his Father in law for doing sale-agreement & Registration. As the owner is not having any active bank account in India; he told that in GPA document he'll give right to the GPA holder for receiving total Amount from Purchaser or Bank. Now my doubt is can GPA holder have the right to take the registration/agreement amount from the Purchaser or bank if the owner of the property give that particular right in GPA???
Asked 6 years ago in Property Law
Religion: Hindu
18 Answers
1) Yes , GPA given in relative name is valid POA and you can proceed further transaction of sale deed.
1. Yes owner can grant power to his trusted person to whom the purchase price can be paid by the buyer or his lender bank
2. There has to be a specific clause in the Power of attorney for receiving purchase price
3. Also check that the power of attorney should contain a clause to deal with and sell the property which is intended to be sold to you
If bank is willing to give the Registration amount DD/Cheque in favour of GPA holder if the owner gives the right to GPA holder regarding this; does the purchaser will have any problem in future if the total amount will be be deposited in GPA holder bank account??
Asked 6 years ago
the sale proceeds must be credited to principal NRO account and can be repatriated to the extent of USD 1 million (including all other capital account transactions).
You don't have to worry about it regarding the amount who takes. you have to check GPA is registered or not.
A. GPA Executed In India: Since the owner is transferring his right to his father in law towards power to sale that
GPA needs to be registered in the eyes of law.
GPA Executed Outside India: GPA shall get seal and signature of local Embassy or console along with two
witness and the same GPA copy shall be adjudicated from the local District Registrar Office. Consequently,
you can deal with this property. In this regard, there must be clear clause towards Power to Sale and receive
sale Consideration amount.
B. You can transfer sale consideration amount to the GPA holder without hesitation if the GPA executed
properly by following the above required points.
Yes the GPA holder can legally accept the amount for which the power of attorney is given to him clause is made.
check registration of POA and if executed outside india then you have to check if cross attested by Indian consulate and in India By SDM.
In your case the sale of property is by NRI, it is mandatory for buyer(you) to deduct 20.66% TDS on the sale price of the property no matter how much is the amount and deposit it with the department through TAN registration. After that it is not your concern who keeps the amount.
Now my doubt is can GPA holder have the right to take the registration/agreement amount from the Purchaser or bank if the owner of the property give that particular right in GPA???
A-Yes. You can buy a property from a GPA holder if the GPA authorises the holder to sell and accept consideration in subject to the subject property. Then, it is valid sale.
If bank is willing to give the Registration amount DD/Cheque in favour of GPA holder if the owner gives the right to GPA holder regarding this; does the purchaser will have any problem in future if the total amount will be be deposited in GPA holder bank account??
A- You can go ahead with the purchase if the GPA stipulates that the holder is authorised to accept money on his behalf, then you would have no problems in future.
Just make sure GPA is registered.
Firslty, everything can be ascertain from the language of the purpose of the GPA.
Secondly, there has been a latest Supreme Court judgment which says that no GOA or SPA for property transaction except power to the close relative of the owner.
Thirdly, in your case relation is close as he is father of the owner.
Fourthly, payment clause can also be added in the GPA making father competent to receive the amount on his son behalf.
You may purchase the property through the GPA holder
There will be no problem for you in future. If possible get the receipt with you vide which the money is transferred to the owner.
Regards
Make sure that the same is a valid GPA.
Regards
Presently as per the Supreme Court judgement you can't sell the property through GPA. You need to inquire the same at the regional sub registrar office at the said jurisdiction. They may allow you if the state law has some exceptions.
The owner can authorise anyone of his confidence to sell the property by executing a registered GPA deed.
If the authorisation makes clear that the sale consideration may be passed on to the GPA holder to his bank account, then there is no legal infirmity in the sale transaction.
The GPA deed will come to the rescue of the purchaser in case of any litigation in future in this regard.
No the sale of immovable property was barred by Supreme court through GPA as many fraudulent sale transactions were executed by GPA holders.
No sale through power of attorney
Suraj Lamp & Industries Pvt. Ltd. v. State of Haryana & Anr.