It is not benami transaction
2) on basis of GPA attested by Indian consulate property can be sold
3) husband should execute POA in favour of family member not FIL
4) contact a local lawyer
Is GPA made while buying valid for Selling
I'm trying to buy a constructed house which was purchased jointly by seller and husband (in 2010). Since both were abroad, seller's father executed transaction through the GPA. The GPA was signed by sellers in Indian Embassy abroad and was registered in district registrar office. Come in 2020, the sellers are still abroad and they want to sell the same property via GPA again, through seller's father. I have below questions 1. Any risk of having both buying and selling done through GPA? would it be considered benami transaction? 2. Is it required to have a new GPA done 3. since seller husband is not a blood relation to the GPA holder (i.e. he is father-in-law), will the GPA be valid? 4. One more doubt, the GPA document has the surname of the seller written with pen (on top of typed text), will it be a problem Original 2010 GPA scope: To do any and all of the transactions as mentioned below: a) To purchase , sell/ transfer on our behalf and for getting the execution of the Sale Deed, admit execution before the concerned sub-registrar, to collect the Sale Deed, to pay Taxes, apply for & receive encumbrances & Khatha, in respect of Flat/Villa/Site b) To receive disbursement of the facilities and for that purpose gives effectual discharge. c) To take possession of the properties which have been purchased on my behalf. d) To enter into/execute and furnish such documents and writings as may be required by the trustees/agents of the Bank. e) Generally to do all other acts, deeds and things necessary in this regard.
Asked 3 years ago in Property Law
Religion: Hindu
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19 Answers
1. Ask for latest date Power of Attorney, since the old POA has served its purposes and you would not know if the old POA was revoked /canceled after 2010, by principle Seller party,
CONSIDER THIS:
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. No risk , and not it is benami transaction .
2. If there is not given any boundation in the GPA i.e. time limit then it is valid.
3. GPA can be given to a nearest relative , since the father in law is relative , then this GPA is valid.
4. Any addition in the GPA should be attested by the executor .
1. The earlier GPA was given for purchasing the proeprty, hence the sellers have to execute a fresh GPA now for selling the property following the same procedures as earlier.
2. Yes.
3. No, the seller's husband can execute a GPA in favor of anyone of his own blood relative.
4. The original GPA is not valid for selling the property, it was meant for buying the property and not for selling it hence you ignore it and insist on new GPA.
The old GPA is not having the schedule of property now they propose to sell to the prospective buyer.
Further the old GPA was for both, whereas the seller's has to execute a GPA in favor of his blood relative to sell his share of property on his behalf.
Did you obtain a legal opinion from n experienced lawyer in the local, if not please obtain the same before venturing into this purchase.
NO worries about the situation of sales strategies for the compliance of rules of law.
The following are my answer for your questions Please read carefully and follow.
1- GPA is not valid documents for powers of sale of land, you need SPA be registered with sub- Registrar office then sale would be valid as per section 17 of Registration Act 1908.it would not be considered as benami trasaction as far as the fund is transferred through under Foreign Inward Remittance account in India.
2- Not GPA ,you need SPA.
3- SPA would be valid.
4- Please get fresh SPA executed. In case any correction it has to be initialed by the executant of SPA.
1. No there will be no problem, go ahead for purchase if owner title is clear.
2. Yes.
3. Yes.
4. There should be signatures over anything written with pen on a typed documents.
Check ownership title and go ahead.
Thank you all for quick replies. 1. Some of the answers says GPA is invalid but SPA is required. Should I ask for new SPA or GPA now and but is 2020's SPA legal? (considering he purchased through GPA in 2010). 2. Since original GPA was for indefinite period, should I revoke the old GPA before executing new SPA/GPA? thanks you.
Asked 3 years ago
Instead of revoking GPA, Please mention old GPA in recital clauses of SPA 2020 while executing fresh SPA for sale of property.
Answers to your questions:
1) No risk in buying and selling done through GPA, it would not be considered benami transaction legally.
2) For other queries asked, the answer to this would be to get a new Special Power of Attorney done for this transaction.
3) Since the answer to question 2 is stated in the negative, the answer to this also would be in the negative.
4) For this reason, it is better to have a fresh GPA or SPA done.
Due to the constraints being faced the world over due to the pandemic, I see no reason why the earlier GPA cannot be reused for this transaction. However it is best to receive an email from both the seller and her husband directly and independentely that they are alive and have not withdrawn the earlier GPA given to her father and his FIL.
1. For such type of assigned work , any of the two can be executed i.e. SPA or GPA.
- If this GPA was executed in 2010 , then there should be a new SPA/GPA .
2. If there is mentioned that this GPA is for indefinite period , then no need to revoke and execute a new one.
1. The GPA or the SPA, it serves the same purpose.
SPA means special power of attorney for the purpose of selling alone.
GPA means he can perform all other related acts also with regard to post sales.
Hence it makes no difference whether the seller is selling it by executing a GPA or SPA, the deed should be properly attested by the official of Indian embassy of that country or by a notary public in that country, adjudicated by the concerned registrar in India.
The old GPA is not valid hence you ignore it.
2. You are not the principal hence you do not have the power to revoke the previous GPA.
Since the previous GPA was for the purpose of purchasing the property, it would stand automatically cancelled after the completion of the task assigned for that purpose, however you can ask the seller to cancel the same by issuing a notice communicating his decision to cancel the previous GPA.
1) you can request for new SPA for sale of property
2) old GPA can be revoked
You can sell the property only with gpa you need sale deed too. No need to do spa if gpa consists of power to do things which are necessary for purchase
Dear Sir,
The said sale will be fully valid and the GPA to me made afresh as done previously and the sale will bot be construed as the benami by any ground. The GPA will be valid even the GPA holder is father in law. Even though the previous GPA had no mention of time limit but the new GPA or SPA is necessary for the sale.
it is not benami transaction.
benami transaction means any transaction in which property is transferred to one person for a consideration paid or provided by another person.
general power of attorney is usually a document that allows an agent to act on behalf of his principal on more than one matter. There is no expiration date on a general power of attorney unless otherwise specified. On the other hand, the special power of attorney is created to give an agent power to complete a specific job. The power of attorney ceases to apply once the transaction is completed.
1. Both will do.
2. Get a new one done.
Yes.
1. No same GPA once executed for purchase of property cannot be used for sale of that property.
2. It will be better if seller execute fresh GPA.
3. Yes GPA will be valid.
that is not allowed now as per the supreme court judgement.
Blood relations don't matter in PoA. Anyone can be given a PoA. That can create a problem if anyone looks very carefully.
The old GPA should work as it wasn't revoked. If it was a GPA then no need to revoke it.
The old GPA should work as it wasn't revoked. If it was a GPA then no need to revoke it.