• Can buy a GPA developer from builder.

Hello ,

i am looking for property advice, the land developer ( kumar) has made a GPA from the Land owner
 (rajapa) and he has registered him self a sale deed kumar from GPA he registered . now can i buy the land from the developer.

when we go thru the document we observed 
1 :- from land owner he ( developer) made a sale agreement
2:- from land owner he ( developer) made GPA
3:- from GPA he (developer ) made a sale Deed.

Hope you understood thanks in advance.
Asked 6 years ago in Property Law
Religion: Hindu

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15 Answers

From the facts, I can say that this is how JDA between the land owner and developer work and its legal.

Is the GPA registered one? Do all the members of land owner have given a GPA in favor of developer?

I can suggest better advice if i look into these do or take a legal opinion from a Advocate. 

Jamal Sait
Advocate, Bangalore
168 Answers
2 Consultations

Hello, 

I guess you want to say that being the GPA holder he executed the sale deed in his favor only and now he is selling the land to you. 

I would not advise you to purchase the said piece of land. 

Let me know if I have correctly understood your query. 

 

Regards 

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

The person who gave the GPA might challenge the sale deed and then unnecessarily you will also become the part of the litigation. 

However, if you are sure that nothing of such sort will happen and the GPA holder and the original holder of land share cordial term then you may purchase the land.

 

Regards  

Anilesh Tewari
Advocate, New Delhi
18103 Answers
377 Consultations

Dear Sir,

The following information may kindly be read:

Buying property through General Power of Attorney or GPA

The Honorable court has held that when someone transfers any immovable property through GPA, it does not convey any right 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.

Validity and Scope of General Power of Attorney

A lot of real estate is being bought through GPA; however, as a power of attorney is not an instrument of transfer in regard to any right, title or interest in an immovable property, it still serves several purposes for buyers and sellers, particularly where registration of sale deed is not possible due to some legal issues.

 

The legal definition of the GPA is that it is 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. Interestingly, GPA is revocable or can even be terminated at any time unless made irrevocable in a manner known to law.

GPA is Not Irrevocable

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. Thus, in totality GPA does not convey ownership of the buyer; however, a GPA holder may execute a deed of conveyance in exercise of the power granted under the power of attorney and convey title on behalf of the grantor.

Taking the judgment from the Supreme of India into consideration it’s a settled law now that immovable property can be legally and lawfully transferred or conveyed only by a registered deed of conveyance and not through GPA. Thus, as GPA does not conclude complete transaction, the Supreme Court parties should consider registering the deed of conveyance.

The Supreme Court in the case had however, observed that GPA transactions may also be used to obtain specific performance or to defend possession under section 53A of Transfer of Property Act, 1882.

Netravathi Kalaskar
Advocate, Bengaluru
4951 Answers
27 Consultations

1)check whether title is clear and marketable 

 

2) check whether property taxes paid till date 

 

3) take 30 years title search 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

Without going through the title deeds we cannot advice you whether to purchase property or not 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

Well, title is clear but purchase of property by developer is not proper. Buyer and POA holder cannot be same person but law is not clear on this.

So, you can buy.

Yogendra Singh Rajawat
Advocate, Jaipur
23079 Answers
31 Consultations

Yes if the said gpa is registered and with separate execution of sale deed

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

Yes you can freely purchase the property as he has purchased it vide the registered GPA and he is the absolute owner of the property. 

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

There is no problem the GPA is registered and so is sale deed, further if you have any doubt on seller ask for an indemnity bond from him. 

Shubham Jhajharia
Advocate, Ahmedabad
25513 Answers
179 Consultations

Dear Sir,

Legally speaking it is not correct but it is being accepted by bankers and public at large. The GPA rules as observed by SC are as follows

Kishan Dutt Kalaskar
Advocate, Bangalore
6230 Answers
499 Consultations

it is not possible to answer without going through title deed and other relevant document. 

Mohammed Mujeeb
Advocate, Hyderabad
19325 Answers
32 Consultations

If the developer has a registered GPA on his name, then he can very well execute a registered sale deed to the prospective buyer non behalf of the landlord.

T Kalaiselvan
Advocate, Vellore
89976 Answers
2492 Consultations

If there is a registered sale deed on his name then he becomes the absolute owner with clear and marketable title to the property hence he can very well sell the property.

You may obtain a proper legal opinion before buying the property.

T Kalaiselvan
Advocate, Vellore
89976 Answers
2492 Consultations

Dear 

The land can be purchased but you should check that the land owner know about the transfer of property to developer through sales deed as GPA holder. 

If he has the knowledge of transfer then you can go ahead with the purchase. But make sure the title of property is clear and litigation free.

Mohit Kapoor
Advocate, Rohtak
10686 Answers
7 Consultations

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