• Buy a flat using GPA

I am currently in USA and I want to buy a flat in Hyderabad, India. The property builder suggested LICHFL for house loan. LICHFL executive suggested me to use GPA option.

I want to give POA to my own brother to buy a flat for me on my behalf. My brother also bought a flat in the same apartment recently.

Could you please clarify the below queries -

1.	Will there be any problem for my brother with this process throughout? If yes, can I give GPA to my father?
2.	Can I get the GPA notarized by any notary in USA or it should be notarized only by an authorized official of the Indian Embassy/Indian Consulate/Trade Commissioner of India?
3.	Do we need to register the GPA in Hyderabad, India?
4.	Will the flat be registered on my name only?
5.	Will all the documents related to the flat have my name only as the buyer?
6.	Will I get all the rights as a normal buyer or will there be any change in the rights on the flat?
7.	Is there any difference in charges to be paid to the government with this process?

Please let me know if there are any other pros and cons in this process.
Asked 3 years ago in Property Law
Religion: Hindu

9 answers received in 1 day.

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9 Answers

Any immovable property can be sold or purchased by person residing abroad through Special Power Attorney. It is SPA not POA. The procedure  is, draft a special power of attorney on Indian stamp paper of 100 rupees which  is available in all countries giving SPA to any of you relatives/friend to sell the property.  Go to Indian consulate and get SPA attested which  the consulate official will readily do. Send the SPA to the person named, he will take the SPA to the District Registrar who will validate it by putting his seal and signature. Fee for validation of SPA is 1 % if it is given to blood relation if given to other person it is 2% of government valuation of the property. With the validated SPA you property can be sold by person named. The SPA needs special format of draft.

  1. SPA can be given to any blood relation, it you choice you can give it to brother or father.
  2. It has to attested as stated above not notarized.
  3. Attests SPA by Consulate needs only validation by District Registrar in Hyderabad not registration. Office is at Near Niloufer Hospital, Hyderabad.
  4. The flat will be registered in your name only.
  5. All documents will have your name as buyer.
  6. You will have all rights of normal buyer. It is as if you are directly buying the flat.
  7. You pay one per cent stamp duty extra for validation of SPA.

 

 

Ravi Shinde
Advocate, Hyderabad
4042 Answers
42 Consultations

5.0 on 5.0

You can execute specific POA in favour of your brother or father to purchase the flat 

 

2) POA should be attested before Indian consulate 

 

3) mere notarised POA is not sufficient 

 

4) not necessary to register POA as it has been attested by Indian consulate 

 

5) you would be reflected as buyer of flat 

Ajay Sethi
Advocate, Mumbai
94719 Answers
7532 Consultations

5.0 on 5.0

1. The flat purchased by your brother has nothing to do with the purchase of this property on your behalf through a GPA deed.  You can go ahead. 

2. The GPA deed can be notarized by any Notary public of that country or by an official of the Indian embassy. 

3. The GPA should be adjudicated in Hyderabad. 

4. Yes. 

5. Yes. 

6. As a buyer,  the title to the property would be on your name. 

7. No.

T Kalaiselvan
Advocate, Vellore
84920 Answers
2195 Consultations

5.0 on 5.0

1. There will be no problem to your brother. However your brother had to set time to complete the process. If your brother is very busy, then instead of your brother, let your father be the Attorney for you to complete the process.

2. GPA has to be notarized from the authorised notary of the Indian Consulate.

3. Yes, the GPA received from USA has to be adjudicated in the jurisdictional District Registrar's Office in Hyderabad.

4.  The Flat will be registered in your name only.

5.  Yes, all the connecting documents will reflect your name as buyer-Represented by your Attorney-either by your brother or father, as the case may be.

6.  You will get all the rights over the title of the flat as a normal buyer.

7.  For Adjudication of the GPA in Hyderabad, there will be stamp duty, which will be around Rs. 300 to Rs. 500/-.

Shashidhar S. Sastry
Advocate, Bangalore
5116 Answers
314 Consultations

5.0 on 5.0

1. Either of them is competent to act. 

2. Any Public Notary will do. 

3. Yes

4. Yes

5.yed

6. Yes

7. No.

Devajyoti Barman
Advocate, Kolkata
22822 Answers
488 Consultations

5.0 on 5.0

Dear Sir, 

You can grant a GPA in favor of your brother or your father without any problem. A GPA will give broad authorizations to the individual you grant it to.

If you get GPA notarized through Any notary in USA, the same will still require to be authenticated by the Indian embassy or consulate.

You can get  the GPA attested directly by the Indian embassy or consulate in that country any, it will be considered to be a valid notary.

Your brother or father  to whom the GPA is granted should get the deed registered in the Sub-Registrar office in the area where property is situated or the place of residence.

The GPA shall have get the sale deed executed in you name, these conditions you should mention in your GPA deed itself also.

For transfer of owner ship in India there is requirement of a registered sale deed to be executed, if the same gets executed in you name, you will be the owner an will acquire all the rights of the owner.

In case of transfer of property by NRI, the stamp duty, registration fees are all the same as are in case of purchase of property by a resident. Non-resident Indians have an advantage in terms of tax benefits. They can enjoy the same tax benefits that an Indian resident is entitled to on purchase of a property. NRIs can claim a deduction of INR 1 Lakh under Section 80C of the Income Tax Act, 1961. If the property is sold within two years of its purchase

There is no difference of process.

pros of the process of having a GPA execute a sale deed in you name is that you won't need to come to India.

con of the process is that there are many chances where improper execution of GPA leads to problems or legal issued later on.

 

When it comes to purchase of property making the same in person is the safest route. But having said that if you draft a proper deed through with good legal assistance there are less chances of there being a legal issue later.

 

Thank you

 

 

Anik Miu
Advocate, Bangalore
8879 Answers
110 Consultations

4.7 on 5.0

1. Yes you can't buy now only through gpa you require sale deed. 

2. Through embassy or consulate

3. Yes

4. It depends on other heir if any if not then yes

5  yes

6. Yes

7. Related stamp duty and registration. TDS applicable will be deducted

Prashant Nayak
Advocate, Mumbai
31951 Answers
179 Consultations

4.1 on 5.0

1. There should be no apparent problem to be faced by your brother for acting as POA holder for buying the flat in your name.

 

2. You shall have to get the said GPA notarised by local Indian Consulate and thereafter get it stamped by Stamp collector in India.

 

3. It has to be stamped as stated above. For registering the POA both the parties shall have to be present before the Registrar.

 

4. Yes, by your POA holder.

 

5. Yes.

 

6. You shall be the buyer.

 

7. No. The stamp duty and registration fees shall have to be paid by you. 

Krishna Kishore Ganguly
Advocate, Kolkata
27219 Answers
726 Consultations

5.0 on 5.0

1. no there will be no problem for your brother.

2. You should get the GPA attested from Indian Consulate.

3. yes

4. yes papers will have your name as buyer

5. you will get complete title of that flat.

6. yes registration of GPA and stamp duty will have to be paid to govt.

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

5.0 on 5.0

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