If your narration is correct, then the sale deed and the title appears to be valid. However get the property documents vetted by a Lawyer.
Sale deed executed in 2007 by builder using GPA given by owners
Mr. X has 4 acres of syno. 1 and Y and Z jointly had 3 acres in sy.no. 2 converted land. Mr.x converted into layout from his own funds. Where as Y and Z didn’t have funds so brought in Mr. C and gave notarised GPA in jan 2007 to mr. C mentioning he can sell, mortgage encumber except plots 1-13 formed in sy.no.2 and is irrevocable. The agreement between them is simply on 100 rupees paper.The layout approving authority given approval jointly to Mr. X, y and Z. Of plots formed in sy.no.2 plot 15-19 some part shares with sy.no. 1. In 2007 mr. X, y and Z where y and Z represented by gpa holder mr. C has registered sale deed to mr. A and that in mr.A name. Now is this sale deed valid and title is ok.
Asked 6 years ago in Property Law
Religion: Hindu
14 Answers
Sale deed is valid with clear title transfer to A.
1. 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. A Notarized POA is legally infructuous for immovable properties.
X has to file suit to set aside sale deed if part of land standing in syno 1 were sold to A
it is necessary to peruse documents signed by seller to advice further
Dear Sir,
In Bengaluru most of the sales are through GPA only. Even 2011 landmark judgment by SC court approves such sale transactions. See the following judgments.
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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 (date) 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 (date),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 (date).
After this we issued a notice to the builder and on reply to notice the builder through its legal counsel sought again time upto (date).Subsequently again a notice was given on (date) to execute the sale deed but the builder again replied by letter and sought extension upto (date) with the same reason that flats are incomplete.After (date) 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 date.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,
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.]
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Sec 202 of Indian contract act says irrevocable GPA cannot be cancelled as it is executed for consideration.
Section 202 in The Indian Contract Act, 1872
- Termination of agency, where agent has an interest in subject-matter.—Where the agent has himself an interest in the property which forms the subject-matter of the agency, the agency cannot, in the absence of an express contract, be terminated to the prejudice of such interest. —Where the agent has himself an interest in the property which forms the subject-matter of the agency, the agency cannot, in the absence of an express contract, be terminated to the prejudice of such interest." Illustrations
(a) A gives authority to B to sell A’s land, and to pay himself, out of the proceeds, the debts due to him from A. A cannot revoke this authority, nor can it be terminated by his insanity or death. (a) A gives authority to B to sell A’s land, and to pay himself, out of the proceeds, the debts due to him from A. A cannot revoke this authority, nor can it be terminated by his insanity or death."
(b) A consigns 1,000 bales of cotton to B, who has made advances to him on such cotton, and desires B to sell the cotton, and to repay himself out of the price the amount of his own advances. A cannot revoke this authority, nor is it terminated by his insanity or death. (b) A consigns 1,000 bales of cotton to B, who has made advances to him on such cotton, and desires B to sell the cotton, and to repay himself out of the price the amount of his own advances. A cannot revoke this authority, nor is it terminated by his insanity or death."
If JDA is not registered does this have effect on conveyance of title? Here jda between mr. Y, Z and C not registered, no share agreement. Is it ok that the plots sold by Mr. C who recieved this as share from Mr. Y and Z through GPA notarised. Is it possible that the mr. Y and Z in future claim to cancel the 2007 sale deed stating that JDA was cancelled and the GPA had no honor. There is 1 year gap between jda and gpa to sale deed. Is this still holds clear title tag.
Asked 6 years ago
1. JDA should be a registered one.
2. Unregistered JDA will have effect on conveyance of title.
Non registration does not affect validity of JDA
2) registration of GPA was not mandatory in 2007
3) if JDA was cancelled legal proceedings ought to have been taken by landowner to set aside sale deeds if any executed by builder on basis of POA
If it's a registered sale deed then it's valid. Yes jda is mandatorily to be registered. You can get it registered later any time before conveyance
There was no rule mandating the registration of GPA for transaction of immovable property in that year.
Hence the act of builder selling the property through GPA is valid till such time the principal is alive.
However you may obtain a proper legal opinion before venturing into the purchase.
The joint development agreement may be made in notarized stamp paper too, however the current laws states tht the GPA given to the builder/third person has to be executed by registered deed alone.
A development agreement is not required to be registered. This includes all construction contracts given to a developer. However it attracts a stamp duty of 4% of the market value of the property, subject to a maximum of Rs. 4 lakhs.
The following are the list of documents that do not require registration:
Power of attorney that is given except power to sell property
Development agreement
Agreement of sale given by a land owner to a developer
Lease agreement
Lease deed for less than one year
Memorandum of oral partition recording a past transaction.
Yes the title is good the owners has given POA and there is agreement between the builder and the owners so this sale deed executed by the Power of attorney of the owners is valid.
No it does not effect the title in this case.
See already the flats are registered to buyer in this case now cancelling GPA won't effect the already registered sale deeds.
You can engage a local advocate and he can verify all documents.
Notory Agreement on 500rs stamp is enforceable.
Sale through GPA is valid and no challenge after 3 years maintainable. Title is clear.
1. Yes sales deed is valid and title is completely valid and genuine as per version stated by you.
2. Yes it holds a clear title as POA was given to Mr C for sale of plot No. 15 to 19
