• Registry through GPA

I'm buying a property in Greenfield, Faridabad from 3 partners who are registered GPA holders of that property along with GPA they hold Will and Agreement to sale also carried out between 3 people and the person they took the property from.Registered GPA was done in Ghaziabad. They said that sale deed can be carried out on the basis of GPA, is it true?. None of the banks are giving home loan on GPA basis. Only NBFC might give loan. I want to know what are the risks involved with buying a property from a GPA holder. ? Can the previous seller who has sale deed on her name can she create any trouble in the future after the registry is done on my name ? The current sellers are holding the original documents of Property chain along with registered GPA, WIll and Agreement to sale for that property. Please guide.
Asked 2 months ago in Property Law from New Delhi, Delhi
Religion: Hindu
Honble Supreme Court vide its judgment rendered in case titled as Suraj Lamp and Pvt. Ltd. v/s State of Haryana and another has held that A power of attorney is not an instrument of transfer in regard to any right, title or interest in an immovable property. 

So, i would advise you not to buy any property through GPA as it can be subject to lot of litigation in future.
Siddharth Jain
Advocate, New Delhi
2396 Answers
26 Consultations

5.0 on 5.0

Dear Client,

GPA with consideration good document to execute sale of property.NO issues, GPA is execute to evade stamp duty as half stamp duty payable in comparison to sale deed. Previous owner cannot - Original sale deed must be in possession of GPA holder which will now deliver to you along with all original property documents. 
Clear sale, no complications. Go for it.
Yogendra Singh Rajawat
Advocate, Jaipur
6069 Answers
5 Consultations

4.7 on 5.0

in order to confer clear and marketable title to property it is necessary that sale deed is to be executed duly stamped and registered 

2)only a sale-deed holder (title owner of a property) can execute a GPA in favour of a home-buyer.

3) The seller who holds the property on a GPA will first have to get the sale deed registered in his name and only then he can transfer it to another person,
Ajay Sethi
Advocate, Mumbai
53132 Answers
3181 Consultations

5.0 on 5.0

After the supreme court Judgement of in the Surya lamps the transfer vide GPA is not valid the GPA can be executed for signing and registration of the property in name of the buyer but not valid instrument of transfer so in the partners transactions the title is not cleat.
The first owner can create a trouble further it will be better if the previous owner transfer property owner in your favour.

Also the partners can transfer the land to you vide the POA in name of original owner as GPA of owner citing any reason that principle cannot be present further for loan you can apply after the sale deed is done.
Shubham Jhajharia
Advocate, Ahmedabad
8425 Answers
26 Consultations

5.0 on 5.0

A power of attorney is not an instrument of transfer in regard to any right, title or interest in an immovable property. The holder of GPA must get the property registered in his name to sell the property. GPA holder can only enter into agreement of sale but sale deed needs to be done by original owner. So it's advisable not to buy property from GPA holder as litigation may arise in future.
Swarnarka Chowdhury
Advocate, Mysore
1631 Answers
2 Consultations

5.0 on 5.0

1. If the agreement for sale between previous owner and these 3 people is not stamped and registered, then these 3 people do not have a clear title to the property

2. the Will and GPA which they hold is of no use and those do not confer any title on them

3. the Supreme Court has said that such transactions using Will and GPA are done to evade payment of stamp duty on property transfers, therefore they are not valid

4. I would advise not to proceed with the deal

5. just for curiosity ask these 3 persons whether the lady from whom they claim to have purchased this property, is agreeable to sign the sale deed with you as a confirming party - i am certain that they will not have any reply to this. Even if they have, please insist for a registered document between the lady and these 3 people

6. this is the precise reason why no banks are ready to give loan for this purchase
Yusuf Rampurawala
Advocate, Mumbai
2257 Answers
6 Consultations

5.0 on 5.0

The GPA is not a title deed.

The Will cannot be considered as a title document, the will has to be probated in case there is any ambiguity found in it.

The agreement to sell is not a title document

To sell it through GPA, it is to be confirmed that whether is living or not.
T Kalaiselvan
Advocate, Vellore
43245 Answers
485 Consultations

5.0 on 5.0

Sale Deed cannot be carried out on the basis of GPA. Specific POA with selling rights duly mentioned it it is needed for sale proceeds to take place.
Yes. Previous Sale Deed Holder Can claim the property back. As GPA does not give selling rights.
Abhilasha Wanmali
Advocate, Nagpur
853 Answers
1 Consultation

4.8 on 5.0

Don’t purchase property from GPA holder 

2) agreement for sale does not confer title to property 

3) are GPA holder related to seller ? Kindly clarify 

4) seller can create legal problems in future that POA has been revoked by her
Ajay Sethi
Advocate, Mumbai
53132 Answers
3181 Consultations

5.0 on 5.0

One person cannot give POA to three people but three people can jointly give POA to a single person.
You clarify what type if authorization has been given by that lady to these three people who are ready to execute a registered transfer deed in your favor.
What is preventing you from obtaining a proper legal opinion from a local advocate on the basis of the relevant documents produced to you?.
T Kalaiselvan
Advocate, Vellore
43245 Answers
485 Consultations

5.0 on 5.0

Yes it will safe if there is registered Power of attorney in there name, attach a certified copy of POA with sale further to safe guard a written NOC from the lady can be taken though she wont be able to file any claim against you in the future,
Shubham Jhajharia
Advocate, Ahmedabad
8425 Answers
26 Consultations

5.0 on 5.0

Is agreement between lady and 3 persons stamped?

If not then when the property is sold now and sale deed is executed between the 3 persons and you, the stamp authority may levy stamp duty two times - one for sale transaction in favour of 3 persons plus penalty and second for transaction in your favour
Yusuf Rampurawala
Advocate, Mumbai
2257 Answers
6 Consultations

5.0 on 5.0

You can get a sale deed registered in your name through the power of attorney holder as they have Express authority to do so, but still this transaction can be challenged by the lady who is the owner anytime in future taking a defence that the set power of attorney was taken by way of fraud and under duress.
Siddharth Jain
Advocate, New Delhi
2396 Answers
26 Consultations

5.0 on 5.0

Yes,
NO .
Yogendra Singh Rajawat
Advocate, Jaipur
6069 Answers
5 Consultations

4.7 on 5.0

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