• Is sale through GPA is valid?

Hello Sir,

I am purchasing a site/plot in yelahanka, Bangalore.

I am purchasing this plot from Mr. Gowda(property Developer).

Mr. Gowda have got GPA from Rajappa.

In EC, this land is in name of Rajappa.

I wanted to know can i purchase this site from Mr. Gowda. I got this doubt because recently supreme court ordered that GPA will not be valid.

It will be grateful if somebody from bangalore can reply.

Please let me know your email Id, so that i can send GPA copies to you for verification.

Thanks,
Amit Raheja
Asked 2 years ago in Property Law from Bangalore, Karnataka
Purchase of Site thru GPA is valid if GPA is duly registered and stamped. Rajappa the owner must have given the GPA in favour of Gowda the developer, in that case GPA must be supported by a registered Joint Development Agreement also, in addition to this a sharing/supplement agreement must be also duly executed between the land owner and developer for any one of these documents to be legally binding. so furnish the necessary information at the earliest.
Kiran N. Murthy
Advocate, Bangalore
765 Answers
50 Consultations
5.0 on 5.0
Hi, in this case it is better go through the entire documents and get legal opinion and proceeds......... it  is better  contact the advocate personnel.
Pradeep Bharathipura
Advocate, Bangalore
4104 Answers
133 Consultations
4.3 on 5.0
Purchase via gpa is not recognized. However since it is a property related issue it is 
Better to peruse all the documents and give opinion to u .
Ananth Kumar
Advocate, Bangalore
122 Answers
57 Consultations
4.5 on 5.0
Are Gowda and Rajappa in blood relation?  What is the role of Gowda in this Plot of land? Why can't you purchase directly through Rajappa? Any transfer of land through GPA is banned by the Govt. Go through the papers carefully and purchase directly from Rajappa. Tell your lawyer to prepare a title certificate and publish notice in 2 local newspapers as some of the property in Yehlanka are disputed.
Rajni Sinha
Advocate, Mumbai
273 Answers
25 Consultations
4.8 on 5.0
1)when you are purchasing property worth lakhs it is better to spend some money on legal fees to check whether title is clear and marketable . 

2) please check whether   GPA is duly stamped and registered . whether development agreement entered into between the land owner and developer  is duly stamped and registered ? 

3)GPA for development purposes is valid . 

4) there are number of lawyers from this site from bangalore . take an appointment and after paying their consultation fees engage their services
Ajay Sethi
Advocate, Mumbai
23121 Answers
1214 Consultations
5.0 on 5.0
Pls note that all GPA after sep 2011 are not valid
Rajeev Bari
Advocate, New Delhi
1506 Answers
92 Consultations
3.5 on 5.0
1. When was the GPA executed?.  Is it after 2011 or before?.  Whether the GPA. is duly stamped and registered? Whether Joint Development Agreement is duly stamped and registered and specific sharing ratio between the Land owner and developer is mentioned clearly. If the GPA holder is not a Blood relative to the Land owner, then 5% of the value of the property has to be paid as Stamp Duty and should be adjudicated by the District Registrar, if the GPA is executed after Sept 2011.  However without going through the papers a lawyer can not give  correct legal opinion.
Shashidhar S. Sastry
Advocate, Bangalore
1233 Answers
59 Consultations
5.0 on 5.0
1. Carry out the due diligence test before purchasing the property. There are numerous documents such as GPA which have to be vetted before an opinion on the marketability of title is formed. Any casual approach at this juncture would be an open invitation to multiple litigation later on. 

2. Numerous lawyers form Bangalore are on this site. You may consult any one of them after paying his consultancy fees.
Ashish Davessar
Advocate, Jaipur
18061 Answers
446 Consultations
5.0 on 5.0
Dear Mr. Amit Raheja,

I have perused your query seeking advise that whether you should purchase a land plot from the Holder of GPA of the actual land owner. In response I am to say that Property sales through the common practice of general power of attorney (GPA) will not give ownership title to the buyer.

In a landmark judgment that is expected to send a large number of property owners into a tizzy, the Supreme Court held that the GPA method of immovable property sales is not a valid form of transfer of property.

A three-judge bench presided over by Justice R. V. Raveendran said that property can be lawfully transferred only through registered sale deeds. Said judgment was pronounced in SPECIAL LEAVE PETITION (C) NO. 13917 of 2009 {Suraj Lamp and Industries Pvt. Ltd. -Vs- State of Haryana & Anr.} As per judgement Property sales through the common practice of general power of attorney (GPA) will not give ownership title to the buyer.

"A power of attorney is not an instrument of transfer in regard to any right, title or interest in an immovable property," the bench said, after interpreting various provisions of the law concerning property sales. However, the bench said the judgment will not affect "genuine transactions" under the GPA.

Just make sure when you buy a property that the seller had bought it from the previous owner through a sale deed. Make sure you speak to the person whose name is on the sale deed. (Not the person who signed – that is irrelevant)

Note that you won’t get bank loans for GPA based property sales anymore.

Read more at: http://indiatoday.intoday.in/story/property-sale-through-gpa-not-valid/1/154711.html

Hope, above clarifies your doubts. Feel free to approach me, if any further advise/solution is needed in the matter.

Thanks,
SHIVESH KUMAR SINHA
Shivesh Sinha
Advocate, Bangalore
9 Answers
7 Consultations
4.1 on 5.0

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