You can proceed with purchase of property
title of seller is clear and marketable
GPA, properly attested by the Indian Consulate Officer, was executed by an NRI, but not adjudicated in India in the past. The sale deed was executed with this GPA in 2006 and the GPA holder transferred the ownership to another buyer. Later the principal also died. Later in 2010, our current property owner bought this property from this owner who bought it through GPA/from GPA Holder. Now I am planning to buy this property from the current owner. Can we proceed? What should be done?
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Property is sold in 2006 through GPA attested by Indian Consulate but not validated by District Registrar. Purchaser again sold it to your vendor through GPA in 2010. Now you plan to purchase this property. Non-validation of GPA is only procedural irregularity which can be cured by payment of penalty. You can proceed with deal, it is safe.
Generally, if the GPA has not been adjudicated, it cannot be admitted in evidence. In your case the first sale based on the GPA attested by the Indian Consulate took place in 2006 and a subsequent one in 2010. As 12 years have elapsed now, there is no risk of dispute. However, please have all the relative documents examined by a lawyer in order to ensure they are in order and obtain his/her written opinion before going ahead with the purchase.
Thanks for all your quick replies. There was only one GPA, only by NRI. The GPA holder executed a sale deed, registered in 2006, and transferred the ownership to his buyer[Previous Owner]. Later the NRI [Principal] died. Later in 2010, the current property owner bought it directly from the previous owner, executing a registered sale deed. [No GPA in this transafer] Kindly clarify. Thanks
The adjudication of GPA deed was not mandatory during that time, i.e., in the year 2006, hence it is considered as legally valid.
Therefore you may proceed with the purchase of the property if other things are satisfactory and recommended to purchase.
The property has changed into two hands subsequently and there was no legal issue or impediment in this regard so far.
Hence if other issues are satisfied you my proceed with the purchase of the property
The GPA deed has been attested by the embassy official, hence it is a legally valid instrument.
Therefore the transaction made through that instrument is also considered as legally valid.
Dear Client,
Assuming that the property is an immovable property, relevant provisions related to sale under Transfer of Property Act shall be applicable in this case.In 2012, the Supreme Court of India, in the case of Suraj Lamps and Industries Ltd vs State of Haryana, among other things, expressed certain reservations as regards the validity of a GPA Sale in situations where the transactions were not genuine, pursuant to which, the Delhi Government issued a circular dated 27 April 2012 directing the relevant registration authorities not to register any GPA Sales in Delhi. As a result, no transfer of immovable property could take place in Delhi on the basis of a GPA Sale. This move witnessed a significant drop in the number of sale transactions in Delhi.Recently, the Delhi High Court, in the case of Pace Developers and Promoters Private Limited vs Government of NCT and Others, while analysing the Suraj Lamps case, quashed the Circular and held that a transfer through a GPA Sale was permissible in genuine transactions. The court also held that it was open to the registration authorities to examine the authenticity of a transaction before registering the documents
Thanks & Regards
Hi, as per law, General Power of Attorney which is executed outside India need to be adjudicated before the District Registrar, then only the GPA is valid. However, now the property was transferred and it is legal lacuna and you can't correct it. Strictly speaking the GPA is not valid.
If the GPA on the basis of which the sale was concluded 2006, was authenticated/registered by the SRO in India; you may go ahead with the sale.
- Since, the said GPA was attested from the consulate in India , then further its registration for executing a document on behalf of the NRI principal was not mandatory, and the said GPA was legally valid.
- Further, as the said GPA was satisfied after performing the work assigned by the principal , then after the death of the principal , ownership of another buyer will not effected.
- Further, the current owner document is also valid , as he has purchased from the seller who having a sale deed as a title of the property.
- Hence, in my view this property having a clear title , and you can proceed to purchase the same.