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Hi

I am trying to sell my property in India through GPA. I was informed that "Registering a Sale Agreement or Sale Deed the GPA holder has to be one of the Buyers or One of the Parents of the Seller. Only in the absence of the parents, Seller's siblings can represent the Seller and sell the property through GPA."

I would like to know if this statement is valid. As I checked few online websites and what I get to understand is that one cannot sell a property through GPA in India . I am confused and would really like to know from the experts what is the right process here.

Thanks
Asked 2 years ago in Property Law
Religion: Hindu

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15 Answers

Dear Querist

the property can be sold through a Power of attorney holder in India, you may execute a power of attorney either special or general power of attorney in the name of any of your family members or friends, and based on that POA he or she may sell your property.

 

Registration of Sale Deed or sale agreement can be executed through the power of attorney holder and it is legal.

 

Feel Free to Call

 

Nadeem Qureshi
Advocate, New Delhi
6307 Answers
302 Consultations

4.9 on 5.0

Property sale through GPA has been declared illegal by the supreme court in 2011 because people sold property through GPA to evade taxes/stamp duty.

But as you cannot be present yourself at the registrar office a GPA/SPA is required for selling your property.

Now you can sell/buy property through GPA by following due procedure ie the GPA holder would represent you before the registrar and register the sale deed.

There is no such provision of siblings/parents. 

Rahul Mishra
Advocate, Lucknow
14088 Answers
65 Consultations

5.0 on 5.0

Hello,

You should execute a GPA on the basis of which a property can be transferred. The SC in its judgement specified that GPA cannot be used as a means of transferring property.

Regards

 

Swarupananda Neogi
Advocate, Kolkata
2964 Answers
6 Consultations

4.7 on 5.0

You can execute POA in favour of close family relative to sell the property 

 

there is no legal bar in executing POA in favour of family member

Ajay Sethi
Advocate, Mumbai
94722 Answers
7532 Consultations

5.0 on 5.0

If the seller cannot be able tyo sell the proeprty lying on his name in person owing to unavoidable circumstances or because he is living at abroad, he may execute a power of attorney deed in favor of his close relatives back in India or to any other known person.

There is no legal infirmity over this arrangement.

Don't get carried away with the false rumors. 

T Kalaiselvan
Advocate, Vellore
84921 Answers
2195 Consultations

5.0 on 5.0

1. Through a registered POA, the Attorney or Agent can represent the seller and execute the sale deed, on seller's behalf, in favour of the prospective buyer.

2. If the Principal appoints and authorises his blood relative, then there will be a nominal stamp duty and if the Principal appoints and authorises a non-blood relative, then stamp duty of around 5% of the property will be collected.

3.  A POA holder can be a father/mother/brother/sister/son/daughter/wife/husband of the Principal to avoid around 5% stamp duty.

5.  It's advisable for you to appoint a POA, preferably a blood relative, to sell your property in India, who will represent you on your behalf, and execute the sale deed in favour of the prospective buyer.

Shashidhar S. Sastry
Advocate, Bangalore
5116 Answers
314 Consultations

5.0 on 5.0

The GPA can be executed in favour of any person competent to contract, and it is not necessary that the power agent should be a parent. There is no legal bar on sale of property by a duly authorized GPA-holder. The sale has to be registered only by means of a sale deed.

Swaminathan Neelakantan
Advocate, Coimbatore
2797 Answers
20 Consultations

4.9 on 5.0

- If you are living US , then you can execute POA in favor of any relative or nearest one in India for selling the property on your behalf. 

- Further, this POA should be notarized as per rule of US , and attested from the consulate of India. 

- Further , after getting the said POA from you , the POA holder can appear before the registrar for transferring and executing the property in favor of buyer on your behalf. 

- It means that you are not going to transfer the said property in the name of the relative through GPA , but only giving the permission/authority the property on your behalf, and this is acceptable by the registrar in India. 

Mohammed Shahzad
Advocate, Delhi
13222 Answers
198 Consultations

5.0 on 5.0

You should not execute POA in favour of buyer only in favour of family member 

 

you are not protected if buyer goes rogue . You will have to sue the buyer 

Ajay Sethi
Advocate, Mumbai
94722 Answers
7532 Consultations

5.0 on 5.0

Buyer cannot be both the seller and the buyer. You should find someone trustworthy who will act as your representative.

Rahul Mishra
Advocate, Lucknow
14088 Answers
65 Consultations

5.0 on 5.0

The risk in doing so as suggested by you is the same thing what you guess.

If you give power to the buyer to sell and buy this property,  and if he goes mischievous or cheats you then you may not be able to protect your interests in this situation. 

Therefore you may think about some other alternative instead taking this risk. 

T Kalaiselvan
Advocate, Vellore
84921 Answers
2195 Consultations

5.0 on 5.0

No, you cannot nominate the prospective buyer as your power agent. In any sale, both buyer and seller cannot be one and the same person, obviously.

Swaminathan Neelakantan
Advocate, Coimbatore
2797 Answers
20 Consultations

4.9 on 5.0

 1. If you can receive the entire sale consideration amount before your nominating the buyer as the GPA holder, then you can nominate the buyer as your attorney/agent.

2.  However if you can trust the buyer 100%, then you can appoint the prospective buyer as your GPA holder. In this case, the amount of risk will be huge. To protect your interest, in such a case, you should receive the entire sale consideration before hand. 

Shashidhar S. Sastry
Advocate, Bangalore
5116 Answers
314 Consultations

5.0 on 5.0

- No, the buyer will never agree to purchase the property on the basis of GPA , as the GPA is not a valid document for the transfer of property to the buyer . 

- However, before getting full consideration amount, you can enter into a agreement with the buyer for the payment of the remaining & full amount during a specified time frame, and only after getting the full amount of the property you can execute Sale deed in his favor through the POA holder . 

Mohammed Shahzad
Advocate, Delhi
13222 Answers
198 Consultations

5.0 on 5.0

Reply the same through lawyer and create your defense

Prashant Nayak
Advocate, Mumbai
31951 Answers
179 Consultations

4.1 on 5.0

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