1. Yes using valid GPA you can purchase the property the transaction is legal and correct. You have to deduct TDS as per NRI and you will be eligible for the bank loan.
Can I buy a plot owned by NRI, who is willing to sell it by making a GPA
Hi I want to buy a residential plot in Hyderabad. The owner is now an NRI and says he couldn't be able to visit India for selling this. So he says he will execute a GPA in name of his best friend ( family friend with whom the original documents are present). He says that, he will sign the GPA papers and send it back to India for validation in sub registrar office. After validation, his friend will get it registered in my name. Can I buy plot in such transaction? Is it legal? Will I be eligible to get loans on that property in future??( Will loans be processed in gpa transacted properties?)
Asked 4 years ago in Property Law
Religion: Hindu
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19 Answers
1) NRI should execute special POA in favour of family member
2) it should be attested before Indian consulate
3) if executed in favour of family friend it has to be stamped as conveyance
4) you can apply for loan for purchase of property
- As per law, being an NRI , he can execute SPA/GPA in favour of any relative in India , and further dully notarised the same as per the rule of that country , attested the said GPA from the Indian consulate in that country should send India .
- The attorney of that GPA will have legal right to appear before the Registrar for executing the Sale deed in your favour on the behalf of the NRI
- Further, the said Sale deed executed by that attorney is dully admissible by the bank and other authority for loan & other purposes.
- Hence , you can buy the said plot by the attorney holder on behalf of the NRI owner of the plot.
1. It will be legal to buy from a registered POA holder, if due process of law is followed.
2. Loan can be got on such POA transacted properties.
3. However, before buying, obtain legal opinion of the property to find out the clear title of the property.
You can buy not on basis of POA, ask direct sale deed registration.
Dear sir,
But GPA has to be registered notarized GPA doesn't have a valid right if it is registered then you can buy!!
1 GPA in favour of any person except the close family relations is not enforceable.
2. So ask him to give such GPA notarised in abroad in favour of his close family relations. Such GPA requires to be stamped in India as well.
Yes that can be done through a GPA. His friend may represent him through it and register the sale deed.
After going through the facts of your case and questions about your property deal I would definitely recommend solution and advice you as follows:- Yes it is valid and enforceable under the Law.
You may go for loan against the property.
I would specifically advise you to place everything on E- mail about the transaction, GPA and Major terms of deal along with the name of Attorney of NRI in India which would strengthen your deal and contents of GPA.
Yes you can buy
The immovable property can be sold to the prospective buyer either by the owner or by his representative or by his power agent.
There's no illegality in this type of transaction.
You can very well proceed with the execution of registered sale deed on your name duly executed by the GPA agent of the property owner.
Provided, you obtain a proper legal opinion from a lawyer and proceed only when recommended.
You can buy the NRI owned property, provided:
1. ONLY a proper Stamp Duty paid (500/-) and Registered POA holder is entitled to execute any immovable property transaction before the local registrar of sub-assurances. Online POA Registration facility is not available, as yet. IF the POA is not registered, THEN the whole proceedings shall remain illegal. POA can be given to "ANYBODY", irrespective of relationships. Stamp Duty on POA is not the same as Stamp Duty paid on Sale /Purchase Deed.
2. POA may have strategic clauses and time limitations of the deal (payment terms, validity time period of the POA document ....), for safety of the POA giver.
3. 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.
4. POA document can be endorsed abroad by the local consulate office and SUBSEQUENTLY stamp duty paid and registered in India, for it to be legally enforceable.
5. IF person CANNOT go to Registrar office to register POA, THEN Registrar's officer can be requisitioned to visit home, to register POA, on payment of due fees by following due procedure of law.
6. As per a SC judgment, "Immovable Property" CANNOT be sold using a GPA and such GPA and Sale shall remain legally null & void.
1. In most states GPA for sale of property is permitted to be executed only in favour of a blood relative. So you need to check with a local lawyer whether a GPA in favout of a friend will be accepted in the first place.
2. The GPA holder can execute the sale deed for and on behalf of the principal.
3. If the title is clear you can get loan.
Hi
Buying a property wherein the Seller executes a Special Power of Attorney and appoints a power of attorney to sell his property is perfectly valid in eyes in law.
However, the following steps need to be complied.
a) The NRI should go to the nearest Indian Embassy and execute a Special Power of attorney in the name of his best friend and in the Special Power of attorney it should be crystal clear that power of attorney is granted for sale of property at Hyderabad (full details of property including boundaries, link documents pertaining to ownership should be mentioned in special power of attorney).
b) The original special power of attorney should be registered and validated at Sub-Registrar office.
c) The sale deed will then be executed by power of attorney holder and buyer(you).
d) You should make payment of sale consideration only to NRI through bank transfer.
e) You should retain the original registered special power of attorney along with the sale deed at all times.
Hope this information is useful.
Dear Sir,
it is better that in stead of GPA, he signs the SPA in favour of his friend and get is authenticated at Indian consulate where he is residing. Then the transaction will be hassle free.
Yes, this is due procedure to buy property through POa.
No presently gpa sale is illegal aa per SC. Now a long with GPA registered sale deed is mandatory
yes you can buy.
Power of Attorney must be signed in the presence of 2 witnesses and notarised by the Indian Consulate/Embassy.
The POA must be registered with the Sub Registrar/SDM Office and once registered it can be used for registration of the property.
1. Yes you can go ahead with purchase of plot from GPA of owner. It is legal.
2. Yes you can get loan on property once you became owner of that property.
