Buying any property from the GPA holder is not a problem but you need to check that the GPA is genuine and the owner must be alive, if he or she is not alive then the GPA holder does not have any right to make transaction over the property. the safest way is to get new GPA through courier.
Buying a flat on GPA
Can i buy the Ready to occupy flat(Newly constructed) on GPA in Hyderabad, Puppalguda area(Manikonda)? The flat owner is NRI(from Warangal) and ready to sell the flat and his nephew(GPA) residing in hyderabad. What considerations need to check before choosing it? The flat cost is 50L and asked me to give 10% cash and rest of it are going for Loan. He gave 30 days time to fullfill the complete amount. Give me the best suggestions to follow? If GPA accepts can i get full loan from bank? Sorry for my poor english skills.
Asked 5 years ago in Property Law
Religion: Hindu
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19 Answers
Firstly, though there has been a recent judgement that GPA would not be acceptable for property transaction by Supreme Court of India, but an exception is there as it is valid if executed in the favour of a close relative.
Secondly, so, in your case it may be acceptable.
Thirdly, even if you are paying the initial amount in cash then aslo put that thing in the agreement to sale.
Fourthly, time limit Keats there to giv the full payment, but get agree to that if you can give that in time.
Fifthly, yes you can get loan, but still I would advice you to say in the agreement that full payment when your loan would get approved by the back so that if in future you are not able to pay on them your initial payments would come back to you.
Dear Client,
Through GPA, sale is valid, make sure it is registered. Before making any payment , process for loan, if bank approved than good otherwise postpone the deal.
GPA should be with the authority to sell the property on behalf of actual owner. Check for non encumbrance and take delivery of all actual documents including GPA if sale effected.
1, if seller has given power to his nephew under a GPA to sell the flat on his behalf, receive sale proceeds, register the sale document, and if the said GPA is duly signed before the Indian consulate in the country in which the seller is living, then the GPA can be used for the purpose
2. if GPA confirms to the above, you can get a bank loan
Is GPA registered ?
If GPA executed abroad is it attested beffore Indian consulate
3) don’t make any cash payment
4) take bank loan
5) check whether seller has original documents
6) obtain no dues certificate from builder
1. In the instant case the GA executed in favour of his nephew should be considered as valid since he is a NRI.
2. Payment of cash now a day is advised against.
3. the best course of action for you shall be to submit the copy f the said GPA along with sale deed to be checked by the Registrar while informing the amount of stamp duty to be paid by you.
4. You shall come to know at that time whether the registrar could find any error in the said GPA and shall accept the same or not for registering the said property.
Hi Ajay, Yes the GPA is registered by Indian Consulate. He has mailed the GPA docs & agreement of sale. Flat cost is 50L. I am ready to Pay 5L advance and i asked him to show the same 50L in the Agreement of sale then only i will get the 80% of loan from bank for that the owner agreed. Is that the right way to proceed? Is there any tax litications doing in that way? If i show the same 50L then how much the registration pay?(6%)
Asked 5 years ago
GPA attested by consulate requires to be re registered with sub registrar otherwise invalid.
You have to deduct 22.66 per cent TDS on sale consideration
2) TDS under section 195 should be deducted at the time of making payment to NRI seller. It should be clearly mentioned in sale deed between NRI seller and buyer that TDS is deducted at specific TDS rate under section 195 and buyer will produce TDS certificate to NRI Seller.
3) stamp duty on sale deed is state subject and varies from state to state
Yes mention agreed consideration of 50lacs in agreement
You will get bank loan of 80% of 50 lacs i. e 40 lacs
Balance 10 lacs you have to bear, out of which 5 lacs will already have been paid by you as advance
1. You should make all the payments through Bank.
2. You shall have to ensure that the Bank provides you the loan within the stipulated period and it will be prudent on your part to extend the time limit to months from the date of making the first payment.
3. It is to be kept in mind that you hall have to duct 20% from the sale proceeds since the seller is a NRI and deposit the same with the I.T. Authorities s per law otherwise you shall be implicated.
4. You should better inform the matter with your NRI seller in advance.
A. GPA must be registered in the eyes of law or Authenticated by Indian Consulate (if the GPA executed outside India). Later, the same GPA shall be adjudicated from the District Registrar once reached India.
B. As far as Sale Consideration amount is concerned, Rs. 50 Lakh would be attracted TDS under Section 194 A AND 195 of Indian Income Tax act and this TDS is required to be deducted irrespective of transaction value of the property whenever payment made by the purchaser to the NRI.
C. Buyer should first get TAN under section 203A of the Income Tax Act, 1961 before deducting TDS. and this TAN number can be obtained by filling the form 49B. However, if the property purchaser is resident Indian this TAN no. is not mandatory.
D. Rs.50 Lakh consideration shall be mentioned in the Sale Agreement With regard to bank loan purpose and the bank will grant the loan based on Sale Consideration amount. Registration fee is variable from state to state. Hence, you need to visit sub registrar office to get clear stamp duty and registration fee calculation once Sale Deed draft is ready.
Yes you may buy the same of the GPA is registered by the consultate
The NRI can sell his property through his GPA agent provided the GPA deed is a registered document.
The terms for payment is a mutual understanding between parties.
The bank will grant loan if the requisite formalities have been complied properly.
Since the seller is NRI you may have to deduct TDS @ 20% of the sale consideration amount, you may be careful about it.
The Indian consulate in a foreign country cannot register the GPA document, they can only attest the signature of the principal. The deed has to be registered before the sub registrar's office where the property is situated.
You have to confirm the same properly.
Before paying him he sale consideration amount you may have to make 20% TDS since the seller is NRI.
it is mandatory for buyer to deduct 20.66% TDS on the sale price of the property if capital gain is long term capital gain. In case of short term capital gain, TDS will be 33.99% irrespective of income tax slab of NRI .
Registration charges and the stamp duty are state subject, you may enquire about the same in the local sub-registrar's office.
Hi,
please check with the banks for sanction of loan on GPA because some banks don't grant loan on GPA.
1. Sale deed can be executed by the GPA holder i,e agent in favour of buyer if the GPA is registered. On the basis of an unregistered GPA the title cannot pass to the buyer. So even if the GPA has been attested before Indian Consulate it has to be adjudicated before the jurisdictional sub-registrar in India for the payment of stamp duty.
2. Do not execute the agreement to sell unless the GPA is adjudicated before sub-registrar.
3. You can get maximum loan from bank only if the title is free and marketable.
Hi
1) The GPA is attested by Indian consulate.
2) For legal purposes the nephew should register the GPA at Sub-Registrar office by paying Rs3500-/- as registration charges.
3) Registered General power of attorney are preferred over unregistered GPA.
4) Agreement of sale should show the entire sale consideration (i.e 50 Lakhs), so as to enable you to get maximum loan amount from bank
5) Also please check the fair market value of the property from sub registrar office as banks will give loan amount either on agreed sale consideration value or Fair market value , which ever is LOWER.
6) So prior to entering in to agreement of sale, please check with sub-registrar office on fair market value of property, as it will impact your loan sanction amount.
7) Registration charges are 6% of sale consideration value or fair market value which ever is HIGHER.
Hope this information is useful.
Sir first of all the flat OC, share certificate the property papers of land and sale deed of the builder need to be verified.
Further GPA shout be notarized with notary in foreign country and stamped with indian consulate also the same should be after receiving it india the nephew shall get signed and verified from.collector.
A sale agreement van be prepared and same.can be presented before.the bank the bank.shall.give you complete.loan as authorised
Yes by showing the correct amount you shall be safe and get the loan of good amount from.the bank.
Since NRI seller a TDs of 20 percent has to be deducted and deposited with the bank. You need to do this.
No.tax implications on you the stamp.duty shall be around 3 lakh this way.