Dear Sir,

The following information kindly be read;

No property sale on power of attorney: Supreme Court

 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 immovableproperty 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.

"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.

The judgment delivered on Wednesday would have an impact on both freehold and leasehold properties and affect the mode of transfer of property in Delhi and the National Capital Region (NCR) where GPA sales are very common. Even though it can cause some hardship to those who have already purchased property through the GPA, the order will help curb evasion of duties, flow of black money into real estate and also save people from being cheated by unscrupulous owners selling the same property to several people.

• Flat sold by builder to third party whem my Agreement to sale was valid

I had executed a Agreement to sale on one flat at Agra U.P. in 02/11/2012 with a validity of 15 months ,after 15 months the builder with mutual consent and reason that the the construction work is not over renewed it for another 12 months upto  28/01/2015,again with the same reason it sought and extension of another 6 months of agreement to sale which was made and agreement to sale was extended upto 22/07/2015.

After this we issued a notice to the builder and on reply to notice the builder through its legal counsel sought again time upto 15/10/2015.Subsequently again a notice was given on 17/10/2015 to execute the sale deed but the builder again replied by letter and sought extension upto 15/07/2016 with the same reason that flats are incomplete.After 15/10/2016 the builder is untraceable and recently he was arrested on forgery charges and currently in jail.On enquiry I came to know that the builder sold my flat that was having valid agreement to sale to third party with sale deed dated  28/06/2014.During this period my agreement to sale was valid but now builder is in jail what is the legal remedy and the party having sale deed has occupied the flat .now what is the legal remedy me to get my flat back.

Section 53A in The Transfer of Property Act, 1882

1[53A. Part performance.—Where any person contracts to transfer for consideration any immoveable property by writing signed by him or on his behalf from which the terms necessary to constitute the transfer can be ascertained with reasonable certainty, and the transferee has, in part performance of the contract, taken possession of the property or any part thereof, or the transferee, being already in possession, continues in possession in part performance of the contract and has done some act in furtherance of the contract, and the transferee has performed or is willing to perform his part of the contract, then, notwithstanding that 2[***] where there is an instrument of transfer, that the transfer has not been completed in the manner prescribed therefor by the law for the time being in force, the transferor or any person claiming under him shall be debarred from enforcing against the transferee and persons claiming under him any right in respect of the property of which the transferee has taken or continued in possession, other than a right expressly provided by the terms of the contract: Provided that nothing in this section shall affect the rights of a transferee for consideration who has no notice of the contract or of the part performance thereof.]

Specific power of attorney has to be executed by NRI in favour of family member

2) the POA should be attested before Indian consulate 

3) it should not be executed in favour of friend 

a POA executed on foreign soil irrespective of the status of a seller require attestation at Indian Consulate/Embassy. The registration process in India follows it.

NRI seller creates two copies of Power of Attorney with detailed terms and conditions. As a buyer, you should go through each and every clause carefully to understand the content. 

Check whether the POA is signed by two witnesses present in the country of residence of a seller.

The POA should be attested by the Indian Consulate/Embassy.

The Attested POA should be registered in the India by the resident Indian i.e. POA holder. The registration process in India should be completed within three months from the date of execution of POA. The POA can be registered in SDM (Sub Divisional Magistrate) office or Sub-Registrar Office. The rule may vary from state to state.

The relation between the NRI and POA holder should be mentioned in the POA. Preferably the details of ID proof of a POA holder issued by Indian Govt should be specified in the POA. The buyer retains the original copy of Power of Attorney for future reference.

Dear Client,

If he is unable to come India, ask him to execute GPA at Indian Embassy in favor of his friend, valid sale . 

Yes he can purchase from GPA . The person can make a Specific power of attorney to sale the property in your favour in US in name of friend can get same notarized and stamped at indian consulate.

Further he can send same along the life certificate. The power of attorney has to get same verified with the SDM and can then execute and register sale deed in your favour.

1.  Yes. It is possible to buy such Land, from a POA holder, provided the POA is attested by USA consulate and Registered in India.

2.  Above is subject to giving 100% rights to POA holder and proper clauses for making /receiving payment and deducting TDS etc....

Yes he can execute a Registered GPA for the same attested by the embassy.

1. As per the information mentioned in the present query, makes it clear that you wish to purchase a property in India, but by way of GPA in his friend’s favour as he is in abroad.
2. Let me tell you that after the recent judgment by Hon’ble Supreme Court, any transaction with respect to immovable property by way of GPA or POA or SPA, would not hold any sanctity in the eyes of law.
3. But, there has been an exception to it, as it can be excuted in the favour of any close relative to hold legal sanctity.
4. So, in your case, try to get the same in the favour of his close relative, if any not otherwise as who knows who may claim any right in property in future.

Yes, he can authorise his power agent to execute a registered sale deed in your favor provided the GPA deed is registered within the local jurisdiction.