HI, We are buying the flat in Tirupati, Andhra Pradesh. The developer/firm has Development Agreement CUM Irrevocable General Power of Attorney from Landlord and GPA registered with a firm represented by their MD & another director. 1. Who has the authority to sign the agreement of sale / Sale Deeds if its given to a firm? 2. Can the firm (board of directors) give authorization to another director to sign the agreements/registration sale deeds who are not part of the Development agreement cum GPA? 3. Developer is claiming that they given authorization to another director for execution of agreements/sale deed in SRO. 4. Is RERA mandatory in Andhra Pradesh? Developer is claiming that he submitted application to RERA but how can we check whether they submitted the application to RERA or not? Regards prakash
First answer received in 10 minutes.
Lawyers are available now to answer your questions.
Either of them - MD/Director. And if there is sub delegation authority to POA holder than any employee duly authorize by firm resolution.
Only if POA authorizes.
RERA registration mandatory all over India. Project registration can be check on RERA website and buyer can demand RERA registration detail from builder.
1) RERA is mandatory on all states
2) check RERA website as to whether application has been submitted for registration or not
3) if POAis given to firm it can be signed by any of the authorised partners of the firm
4) the stand of developer is correct
Ans 1. If there is proper authority by way of a board resolution then the directors and MD can sign on behalf of the firm.
Ans 2. The board resolution will have to mention all of the minor particulars that the agreement shall be signed on behalf of another director who is not part of the development agreement.
Ans 3. Please ask the developer to show the necessary documentation where such authority has been given to another director.
Ans 4. https://www.rera.ap.gov.in/RERA/Views/Home.aspx
It can bring transfered in form of another gpa registered by the same holder
1. The Developer can enter into sale agreement with the prospective buyer if he has been authorised to do so by a registered GPA.
2. A Director of a Company can sign o behalf of the Company on the basis of a Board Resolution but if it is a partnership fir then all partners must join.
3. same as above.
4. If the project is finished before RERA came into force then you can proceed to buy this.
1 Either the MD of the firm or by any authorized representative of the company.
2. If that person is one among the directors of the company then there's legal infirmity in it.
3. There's nothing wrong in that.
4. You can ask for the RERA registration number and confirm the details from their website.
1. The GPA was executed in favour of the firm represented by only two persons. Any of the said two persons have the authority to sign the agreement representing the firm.
2. & 3.No other person can represent the firm for signing the agreement based on the said GPA.
4. Enquire from the local RERA office to ascertain the fact.
1. Director of firm will have the power to sign the sales deed or agreement.
2. Yes firm can make any director as authorised signatory to sign and make sales deed or agreement.
3. Yes RERA is applicable in Andhra Pradesh. You can make RTI application to get details and registration of project with RERA.
As per the provisions of section 180(1)(a) of the Companies Act, 2013 the Board of Directors of a company can sign.
Visit Rera Website and check. .Visit the Homepage of RERA AP Then click on the link “Approved Projects.
Hi
1) If the GPA is registered in the name of firm (partnership firm) then both the partners namely managing partner and other partners need to sign the sale deed in your favour.
2) If the GPA is registered in the name of private limited company, then the board of directors of private limited can authorise one of the directors to execute the sale deed in favour of the buyer and the board resolution should be annexed to the sale deed .
3) So, please check whether the Developer is a partnership firm or a private limited company.
4) Also in case the developer is a private limited company, please ask for the board resolution copy and check whether it is signed by company secretary or the managing director of the private limited company.
5) RERA is mandatory in andhra pradesh.
6) You can check whether the project is approved or not at https://www.rera.ap.gov.in/RERA/Views/Reports/ApprovedProjects.aspx
Hope this information is useful.
Thank you for the responses.. Please find below explanation for For Point 2 & 3 for above my queries.. I am planning to purchase a flat from Company ‘C’ (pvt ltd). Company ‘C’ has one Managing Director ‘A’, Director ‘B’ and another Directors C & D. Currently the land is registered in name Company ‘C’ as GPA from other firm/land lord represented by Managing Director ‘A’ & Director ‘B’ only . Now, Company ‘C’ provided signing authority to ‘X’ by passing board resolution. Here ‘X’ is some third person/company employee( not a board member). The board resolution is signed only by managing director ‘A’ and other Directors C & D ( Not Director ‘B’) for providing signing authority to ‘X’ to execute agreements/sale deeds. Did board resolution signed only by the managing director ‘A’ (part of GPA) is sufficient to provide signing authority to third person who is not a member of board? And other directors C & D also signed in resolution. They provided only the Copy of the board resolution (not original) in company letter pad signed by Managing director ‘A’ ( not by director ‘B’), Director C & D. Is it a valid legal document to accept person ‘X’ as signing authority to execute a agreement of sales / Sale deeds? Do we need any other legal validity for Board resolution copy? Kindly provide your recommendations.
From your contents the following can be observed:
1. The company is not holding a registered title deed on its name, it is having a only a GPA on its name to prove its title.
The GPA is not a title document.
It is illegal to have title in the form of GPA and there is a supreme court ruling on it do declare that the GPA is invalid title.
Furthermore the GPA can be given to an individual and not in favor of a company because company cannot physically enter into any transaction.
Therefore the validity of GPA and validity of title to the property in the name of company itself is under doubt, which can be clarified and confirmed only by scrutinizing the title document held in the company.
2. The company's decision to sell the property has to be decided by the company in a board of directors' meeting by passing a resolution supported by majority of members/directors.
The resolution passed by the company would be recorded in the minutes book of the company. The extract of the minutes of the meeting can be extracted and on the basis of the decision taken in the meeting the company may give an authorisation letter to its staff who will act as the company's representative for conducting all the transactions the company intends to carry out with regard to this property.
3. The resolution has been passed by majority of the directors hence it can be considered as valid, however the the copy of the resolution in the company's letter head along with the original authorization letter has to be produced by the company for verification.
All the above process are to be carried out diligently and with proper scrutinisation, hence it is advisable that instead of seeking piece meal information from forums like this better you may obtain a proper legal opinion from a local experienced advocate and proceed only if recommended.
Supreme Court in Parmeshwari Prasad Gupta v. Union of India [1974] 44 Comp Cas 1 : AIR 1973 SC 2389, wherein it was observed that notice to all the directors of a meeting of the board of directors is essential for the validityof any resolution passed at the meeting and where no notice was even given to one of the directors, the resolution passed at the meeting of the board of directors is invalid.
2) if quorum for meeting was complete and resolution passed singed by all directors present in meeting resolution would be valid
3) you can seek certified copy of board resolution
4) it has to be recorded in original minutes book of board of directors
Ans:- If board resolution is not signed by all partners but majority of them, it is not an issue. It is absolutely fine to have the board resolution signed by the managing director.
Yes it's valid if the articles of association of that company permits only MD to sign and authenticate the said resolution
Majority decision, B R is valid. Only verify B R not forged than X duly authorize to act on behalf of company through POA. This B R must be to company registrar.
1. The GPA was executed in favour of the Company represented by A & B.
2. GPA can ot be transferred in a third person's name.
3. The GPA transferred in favour of X is invalid in the eyes of law.