• Agreement of sale cum GPA rights nd validity

Respected Lawyers,

Very recently I have purchased some plots from vendors, through AGREEMENT OF SALE CUM GPA WITH POSSESSION by paying full consideration and this document is registered by paying applicable adequate stamp duty. 

Q1) Now can i execute a sale deed with my wife and some other third parties?

Q2) Will there be any title issues in future for the buyers who purchased from me?

Q3) Is this process legally valid?

Q4) Also it is known that Stamp duty paid in AGPA deed can be adjusted proportionately in the subsequent sale deed. Shall I get it adjusted or not for not to be in any trouble in future for the reason of inadequate stamp duty? 

Q5) One of my vendors mother was expired who has 2 major sons in which elder son has got title rights through virasath proceeding(1B pahani) from Tahsildar(MRO) by producing an affidavit of no objection & no claims on property executed by both the dependents. Now only the Elder son who got inherited rights has signed the sale agreement cum gpa. Will I get Perfect Title Search Report from Legal Adviser for loan on property for me or my subsequent buyers? What can be done now to avoid any troubles from second son in future?

Q6) Also suggest, what all remedial measures if necessary can be taken now to protect my buyers & my rights on property?
Asked 4 years ago in Property Law
Religion: Hindu

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15 Answers

1) instead of agreement for sale  cum GPA sale deed should have been executed in your favour 

 

2) agreement for sale cum GPA does not confer clear and marketable title to property 

 

3) sale deed is necessary to confer clear and marketable title to property 

 

4) second son of vendor should execute registered relinquishment deed 

Ajay Sethi
Advocate, Mumbai
94515 Answers
7485 Consultations

5.0 on 5.0

1. Yes a sale deed using GPA can be made.

2. No.since you have GPA of original owner and you shall sign on his behalf only there shall be no issue.

3. Yes it is legally valid.

4. See you can apply before.registrar for calculation and adjustment the registrar shall pass an order to that effect.

5. See the other son need to relinquish his right through register deed or there should be a will without that the other son can challange the title. 

6. The second son also need to sign the agreement cum sale deed or give separate Power of attorney to you.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

1. In my view if there is no relinquishment deed the title is not perfect the buyer can face issues.

2. Relinquishment deed can be prepared now. After that a new sale cum GPA can be given to you.

3. Both owners can sign a sale deed in your favor. On behalf of first one you can sign using the sale cum general power if attorney you have.

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

Relinquishment deed is to be executed by second son 

 

2) ask seller to execute registered sale deed in your favour 

Ajay Sethi
Advocate, Mumbai
94515 Answers
7485 Consultations

5.0 on 5.0

1. Since sake agreement is already executed with you,  make a sale deed with another person is possible on compliance of certain requirements. 

2. To do so you will have to first make a nomination agreement with the person whom you are transferring the property and then while making the sale deed you need to sign as a confirming party with the same seller. 

3. In the sale deed signature of all co sharers is mandatory unless their respective shares are already transferred in favour of the present vendor. 

Devajyoti Barman
Advocate, Kolkata
22774 Answers
484 Consultations

5.0 on 5.0

Dear Sir,

My answers are as follows:

Q1) Now can i execute a sale deed with my wife and some other third parties?

Ans: First get sale deed in your favor, possible and change the katha in your favor then you can legally execute sale deeds in favor of third parties.

Q2) Will there be any title issues in future for the buyers who purchased from me?

Ans: GPA sales are banned from the year 2011 the SC judgment is given below with exceptions

 

Q3) Is this process legally valid?

Ans: Subject to change of katha in your favor.

 

Q4) Also it is known that Stamp duty paid in AGPA deed can be adjusted proportionately in the subsequent sale deed. Shall I get it adjusted or not for not to be in any trouble in future for the reason of inadequate stamp duty?

Ans: Only if the sale deed is executed in your favor.

Q5) One of my vendors mother was expired who has 2 major sons in which elder son has got title rights through virasath proceeding(1B pahani) from Tahsildar(MRO) by producing an affidavit of no objection & no claims on property executed by both the dependents. Now only the Elder son who got inherited rights has signed the sale agreement cum gpa. Will I get Perfect Title Search Report from Legal Adviser for loan on property for me or my subsequent buyers? What can be done now to avoid any troubles from second son in future?

Ans: If you are not a builder then you have no right to get valid GPA and in turn you can sell the sites to third parties. Be careful and discuss everything in person with your known lawyer. The vendors mostly the villagers make you confuse and land you into trouble.

 

Q6) Also suggest, what all remedial measures if necessary can be taken now to protect my buyers & my rights on property?

Ans: Without property transferred in your name it is not advisable to sell the properties.

Sir, agreement is already done. 1) Now can I execute a sale deed with the buyers from me or not? 2) Relinquishment deed from Second son be obtained now seperately or old agreement is to be rectified? 3) How can i convert the existing agreement of sale cum gpa to sale deed now?

Ans: Please read the following. Better you go for sale from your vendors instead of sale cum gpa.

========================================================

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.

 

Kishan Dutt Kalaskar
Advocate, Bangalore
6135 Answers
483 Consultations

4.8 on 5.0

Yes but if you want to transfer ownerhsip to wife than execute gift deed to save stamp duty. 

No future issue.

If you directly execute sale deed than will get excemption of stamp duty paid on GPA. Must have paid 3+1% stamp duty. Now have to pay only more 3% as 6% stamp duty on sale deed.

Title is not perfect. Other son was also needed to execute GPA. No objection and pahani entry dose not confer title until brother execute register release deed in fovor of vendor.

Either include him in GPA by rectification deed or take separate notorise GPA from him and sell/gift the property.

Second son still have half title in property.

Either second son execute release dead in your favour or give you registered irrevokable GPA without considerstion to authorise you to act on his behalf.

 

Yogendra Singh Rajawat
Advocate, Jaipur
22591 Answers
31 Consultations

4.4 on 5.0

You need to register the same and pay stano duty. Yes you can execute sake deed with the presence of both parties

If you improve your title and sell then no issue. 

Yes you can do the aforesaid things stated in 4 &5 points. 

On the top of it you can execute an indemnity bond for further assurance of buyer

Prashant Nayak
Advocate, Mumbai
31802 Answers
175 Consultations

4.1 on 5.0

In my opinion, you can execute the sale deed in favour of your wife.   The chain of title read with virasath proceeding(1B pahani) from Tahsildar(MRO) by producing an affidavit of no objection & no claims on property executed by both the dependents would help the legal adviser for loan on property to give proper report.  However, you may show the copies of the documents to the legal adviser in advance.

Dalip Singh
Advocate, New Delhi
1083 Answers
36 Consultations

5.0 on 5.0

1. Buying a property by a GPA deed is not valid, it will not confer the title to the property on you. You will remain a power agent only till the end until you alienate the property to anyone using this registered GPA on your name.

If your principal is alive then with a life certificate from him, you can execute a registered sale deed in favor of your wife or on anyone who would be a prospective buyer.

2. Once you have transferred the property by a registered sale deed, then the buyer becomes an absolute owner.

3. That is the only way which is legally valid.

4. The stamp duty paid towards the agreement for sale can be adjusted if the property is sold to your name on the basis of the registered agreement of sale entered between you and your vendor by executing a registered sale deed in your favor by the vendor directly to your name, in that event he has to cancel the registered GPA deed executed in your favor by executing a registered cancellation deed jointly along with you.

5. In the given situation, the vendor who has given this GPA and agreement to sell should have a clear and marketable title on the property to execute the said deeds in your favor.

The mere transfer of revenue records by other entitled co-sharers/legal heirs of the deceased owner cannot confer perfect title to your vendor.

The other legal heirs/co-sharers ought to have executed a registered release deed relinquishing their rights in the property in his favor after which your vendor would be deemed to have a perfect title to the proeprty to sell the property to a third party.

In the absence of above, it would be considered as defective title only hence your buyers will suffer setback due this.

You better consult a local lawyer and get the things rectified at this stage itself instead of running around for litigation and other aspects in future in this regard.

6. The remedial measures to be taken is to confirm the derivation of title to your vendor on the basis of above information.

If he is found to have not observed the above procedures to acquire the property or title to the proeprty then yo can ask him to provide you with the rectification deed signed by all the legal heirs/co-sharers by a duly registered document. 

This step would ensure you to have clear and marketable title to the property and avoid future litigation on this.

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

1. You cannot execute a registered sale deed to a third person on the basis of agreement to sale in your favor.

You can however execute a registered ale deed to a third party on the basis of GPA done on your name, but before that you should confirm the title of the proeprty to your principal, if his title is defective, then you cannot proceed further with regard to transfer of this property to anyone by executing  a registered sale deed.

2. The relinquishment deed can be obtained by a registered document or a rectification deed can also be obtained by a registered document.

3. You were advised about this in my previous post, you may go through the contents fully and properly.

 

T Kalaiselvan
Advocate, Vellore
84711 Answers
2172 Consultations

5.0 on 5.0

only agreement to sale is done ? then you cannot sell it further.

1st get e registered sale deed in your favour the n get your name be mutated in the revenue records then only further sale is possible.

Atul Shahi
Advocate, Allahabad
160 Answers
1 Consultation

4.6 on 5.0

1. Yes you can you can execute sale to your wife or some other third party.

2. No but for that you have to mention that GPA on which you are making sale is irrevocable and you have paid full consideration before GPA was made. 

3. Yes it is legally valid.

4. You should not get the stamp duty adjusted in further sales deed.

5. Yes you will get perfect title search report but it will be better if you get relinquishment deed from second son of vendor if affidavit is not mentioned in GPA.

6. You can execute sales deed on your name or as seller to execute sales deed on your name.

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

If the POA has been registered and confers on the GPA holder the express authority to sell the property then the GPA holder can sell/Transfer the property.

yes it is legally valid. 

 

Mohammed Mujeeb
Advocate, Hyderabad
19299 Answers
32 Consultations

4.7 on 5.0

  1. As per the information mentioned in the present query, makes it clear that the agreement to sale has already been excused, and now only sale deed is to be executed.
  2. Yes, the fees as in stamp duty will be adjusted for sure against your sale deed.
  3. Though the other dependent has given affidavit and only thereafter the elder son has got the inherited right, but still it would be required to have a release/ relinquishment deed which will be having more sanctity in the eyes of law.
  4. Yes, it has to be executed separately.

Sanjay Baniwal
Advocate, South Delhi
5473 Answers
13 Consultations

5.0 on 5.0

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