I am planning to buy a property. But the owner is current outside India. He is providing GPA to his brother in India for Registration purpose. Is it ok to go ahead? If yes .. is there a specific format required to be followed? Sumit
Yes it is ok to go ahead you should pay consideration to the original owner only and take his acknowledgement separately also that he received amount and given POA to brother.
The owner can give a specific or general power of attorney to his brother.
Make sure and confirmed that POA is not forged and executed by owner only. Than sale is valid.
Specific power of attorney has to be executed by owner in favour of brother to sell the property and for registration purposes
2) POA should be duly attested before Indian consulate
3) contact a local lawyer
Dear Sir,
Yes you can buy a property through GPA. Transferring the legal right to buy or sell property for another can be performed by granting power of attorney (POA) to specific individuals or corporations. If someone holds power of attorney, he or she has the legal authority to act in specific ways for another person, such as buying or selling real estate
The following information may kindly be read:
A legal document giving one person (called an "agent" or "attorney-in-fact") the power to act for another person (the principal) is called a Power of Attorney. The agent can have broad legal authority or limited authority to make legal decisions about the principal's property and finance. The power of attorney is frequently used in the event of a principal's illness or disability, or when the principal can't be present to sign necessary legal documents for financial transactions.
“When someone transfers any immovable property through GPA, it does not convey any rights or title or create any interest in respect of such immovable property in favor of such person as only a deed of conveyance/sale deed which is duly stamped under the provisions of the Stamp Act applicable to the state in which such property is situated, as well as registered under the provisions of the Registration Act, does so”, this was stated by the Honorable Court in one of their ruling.
Validity and Scope of General Power of Attorney
In cases where a sale deed cannot be carried out due to various issues for buyers and sellers, a power of attorney can be put to great use.
A GPA is defined as “a mere agency whereby the grantor authorizes the grantee to do certain acts specified therein; this he does on behalf of grantor, which when executed will be binding on the grantor as if done by him”.
GPA is Not Irrevocable
Immovable property can legally and lawfully be transferred or conveyed only by a registered deed of conveyance and not through GPA. By the means of a registered sale deed the ownership transfers directly to the purchaser. In case of a General Power of Attorney, if principal dies then automatically the general power of attorney ceases and ownership goes to the legal heirs of the principal. The law is that even if the parties have determined that the GPA is irrevocable it won’t have the effect of transferring title to the grantee.
It is alright to go ahead and register the property through your Vendors brother, who should have a valid GPA,
Please ensure that
1. If the GPA has been executed outside India, then the said GPA has to be adjudicated for payment of property Stamp Duty under Sec 10A of the Stamp Act. Adjudication to be done before the jurisdictional District registrar where the property is situated.
2. THE GPA should permit the brother to present the document- Sale Deed for registration, execute the document -Sale Deed, if he is signing the Sale Deed and admit execution before the jurisdictional sub registrar.
3. The Vendor should have signed the GPA if it executed outside India before a Notary Public
4. Take an email confirmation in writing that the Vendor is appointing his brother to act on his behalf in the transaction.
1. If seller appoints his brother as Agent through GPA, then the GPA has to have the signature of Notary, which has to be countersigned by an official of the Indian Consulate.
2. The GPA, thus received, has to be adjudicated in the jurisdictional District Registrar's Office.
3. If the above procedure is followed, then you can go ahead, subject to getting a favourable legal opinion of the property you intend to buy.
Thanks for the answers! I was anxious because of some details I found on the internet e.g. - https://www.makaan.com/iq/legal-taxes-laws/is-general-power-of-attorney-a-safe-instrument-for-transfer-of-property - Kindly clarify these doubts too. Looking at all answers(for my post), I infer that I can go ahead but with proper confirmation/verification from the Owner. He will be sending a GPA format notarized from Germany(where he is residing) from a lawyer I guess, then it has to registered/notarized before sub-registrar here. Then I can proceed with the Registration process. Anything additional I need to do. - Sumit
Get it executed from Indian embassy. POA without consideration dose not require re registration in India.
Power of attorney has to be duly attested before Indian consulate
2) if it is attested before Indian consulate it does not require registration in India
Yes power of attorney notarised by notary in germany and signed by Indian consulate there then registrar can register same and you can go ahead with the procedure of registration and execution of sale deed.
Also the post you are refereeing is different and the present situation is different as by GPA you are making a sale deed the instrument of transfer is sale deed not GPA, GPA is only used for executing the sale deed so it is perfect.
Suppose in case owner directly gave GPA to you without sale deed for saving stamp duty then it was illegal.
1. ONLY a proper Stamp Duty paid (500/-) and Registered POA holder is entitled to execute any immovable property transaction before the local registrar of sub-assurances. IF the POA is not registered, THEN the whole proceedings shall remain illegal. POA can be given to ANYBODY, irrespective of relationships.
2. POA may have strategic clauses and time limitations of the deal (payment terms, validity time period of the POA document ....), for safety of the POA giver.
3. POA can be registered anywhere in India, before the local registrar of sub-assurances and shall be valid throughout India. Stamp Duty on POA is not the same as Stamp Duty paid on Sale /Purchase Deed.
4. POA document can be endorsed abroad by the local consulate office and SUBSEQUENTLY stamp duty paid and registered in India, for it to be legally enforceable.
It is ok. No specific format. You can opt for any gpa format
Its ok Go ahead, notary public and attested by the consulate. Once it is brought in India, it has to be afffixed with a stamp paper of Rs.500/- and registered before sub registrar of Assurances.
The power of attorney deed should be a registered document, also please obtain a proper legal opinion before buying the property because there are chances that there may be certain things which have not been revealed, which may be material for this purchase.
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Your understanding is right.
You can proceed as per the said program provided you obtain a legal opinion and recommended to buy the property.
The GPA must be duly attested by the indian consulate or embassy and must not be notarized. After that the document must be couriered to India to his brother and his brother on receipt of it must duly get the GPA adjudicated by paying proper stamp duty, as it is a documents signed and attested outside India. Once this process is completed then it can be used by your brother for the purposes of registration.
Dear sir
There will be no problem in proceeding through GPA for registration of property.
The process the seller is following is completely OK.
