• Property sale through notarized GPA

I am planning to buy a BDA approved layout "Kanakashree Layout stage 1" in Byrathi Bangalore developed by Kanakashree Housing Board Society. 
I need following clarification.
Land was purchased in the name of Society president wife Mrs Uma Balagavi on behalf of Society at the cost and contribution of Society (with all stamp and registration charges paid at the time of registration in year 2007). Later GPA notarised but unregistered in year 2010 was executed, whereby land owner Mrs Uma Balagavi gives selling rights to Society president Mr Balagavi (her husband). GPA is irrevocable with power to sell is mentioned in the document. Accordingly from year 2010, society started selling plots to its member in a registered sale deed duly signed by GPA power holder society president and buyer. In year 2013, deed of declaration and confirmation (stamp duty of Rs 200 paid) was registered at sub registrar office confirming Society has all rights to sell the property. Now I am planning to buy land from one of the member. Please let know if I can proceed with purchasing property.
Asked 1 month ago in Property Law
Religion: Hindu

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11 Answers

in 2010 registration of POA was optional not mandatory 

 

2) on basis of POA her husband could sell the property 

 

3) further deed of confirmation has been executed by society

 

4) you can purchase property from member provided title is clear and marketable 

 

5) ask seller to obtain NOC from society .

 

6) check whether seller has original documents of title 

Ajay Sethi
Advocate, Mumbai
87596 Answers
6134 Consultations

5.0 on 5.0

If the said member has purchased the vacant site by a registered sale deed, then you can verify the details of the previous title holder and if satisfied with the valid marketable title to the previous vendors you can proceed.

However it is always advisable to obtain a proper legal opinion from an experienced lawyer before proceeding with the proposed purchase of the vacant site.

T Kalaiselvan
Advocate, Vellore
77748 Answers
1509 Consultations

5.0 on 5.0

Dear Client,

As per the facts which have been provided, it is advisable to consult an advocate before purchasing the property.

Thank You.

Anik Miu
Advocate, Bangalore
4635 Answers
50 Consultations

4.9 on 5.0

In your case, the scrutiny of all the documents related to the property is needed to give an expert opinion. Without perusing the documents an advice is not proper  .A power of attorney is an authority given by one person to another, authorising him to act on his behalf. 

A general power of attorney gives wide powers to the agent to do various things on behalf of the principal, as detailed in the deed. It is not confined to any specific act relating to a specific subject. GPA gives the agent very broad powers to act on behalf of the Principal.

“Transactions of the nature of `GPA sales or `SA/GPA/WILL transfers' do not convey title and do not amount to transfer nor can they be recognised or valid mode of transfer of immovable property.

 Karnataka High court has observed   in "The Agricultural Produce Market ... vs M/S Shree Karthik Investments And on 6 February, 2014, that:- "If a Power of Attorney is coupled with interest, such a document is compulsorily registrable document under the Stamp Act. Merely because a clause says that the document is an irrevocable Power of Attorney, it cannot be treated as an irrevocable Power of Attorney.

Immovable property can be legally transferred only by way of a deed of conveyance which is duly stamped under the provisions of the Stamp Act applicable to the state in which such property is situated, as well as registered under the provisions of the Registration Act, 1908. Notarization of GPA is not equivalent to registration. The sale is illegal if the GPA is not registered. In your case the POA would not be valid as it is not stamped and registered. It is only in admissible in evidence stage. Transactions of the nature of GPA sales, do not convey title and do not amount to transfer nor can they be recognised or valid mode of transfer of immovable property.The courts will not treat such transactions as completed or concluded transfers or as conveyances as they neither convey title nor create any interest in an immovable property.

Registration of power of attorney is optional In India before 2009.But after the Honble Supreme Court vide its judgment rendered in case titled as Suraj Lamp and Pvt. Ltd. v/s State of Haryana and another. The nature, scope and execution are redefined.Compulsory registration is effected from December 2012 on wards. But it’s not with retrospective effect; existing properties that have been purchased from a GPA holder (before October 11, 2011) won’t be affected.But it’s not with retrospective effect; existing properties that have been purchased from a GPA holder (before October 11, 2011) won’t be affected.

 

So also be check the seller has absolute marketable title over the property. If you approach a bank and take purchase loan then all the documents will check by an advocate .

Ajay N S
Advocate, Ernakulam
3986 Answers
93 Consultations

5.0 on 5.0

If there is no sale deed and only goa you may have issues of title in future if you can take the risk you can proceed else don't buy

Prashant Nayak
Advocate, Mumbai
26998 Answers
84 Consultations

4.4 on 5.0

The Supreme Court in the case of Suraj Lamp & Industries Pvt. Ltd. Vs State Of Haryana ,2011 held , that sale transactions carried in the name of general power of attorney will have no legal sanctity and immovable property can be sold or transferred only through registered deeds.

- Further , transactions of the nature of GPA sales or SA/ GPA/ WILL transfers’ do not convey title and do not amount to transfer nor can they be recognized or valid mode of transfer of immovable property.

- Further, those who had already bought property through GPA before its judgment could use the documents to apply for regularization of allotments and leases by development authorities, and nothing prevents affected parties from getting registered deeds of conveyance to complete their title.

- Since,  she executed GPA prior to 2011, hence this judgment will not applied on her, and the sale deed by a GPA holder will be valid .

Mohammed Shahzad
Advocate, Delhi
9707 Answers
116 Consultations

5.0 on 5.0

1) sale deed is valid 

 

2) deed of confirmation strengthens sale deed 

 

3) as far as stamp duty on deed of declaration and confirmation is concerned local lawyer can guide you 

Ajay Sethi
Advocate, Mumbai
87596 Answers
6134 Consultations

5.0 on 5.0

1. Valid

2. Yes, it will strengthen

3. Deed of declaration is not a title document ,and is only a confirmation , and hence registration is not mandatory , and it may be prepared on Rs.200/- stamp papers or duty. 

Mohammed Shahzad
Advocate, Delhi
9707 Answers
116 Consultations

5.0 on 5.0

1.  The sale deed is valid because at that time it was not mandatory to get the GPA executed by a registered document.

2. This is a different document to that of the sale deed, don't get confused by clubbing both together. 

2. Deed of Declaration is a legal document signed and registered according to the law. It is called Deed of Trust as well. It describes and has all the detailed information, especially regarding real estate, about ownership or legal rights of a property.

3. The applicable stamp duty to execute the registered document can be confirmed from the local registrar's office. 

T Kalaiselvan
Advocate, Vellore
77748 Answers
1509 Consultations

5.0 on 5.0

In spite of all of the above you Always need chain of documents from earlier seller for getting good title. 

Prashant Nayak
Advocate, Mumbai
26998 Answers
84 Consultations

4.4 on 5.0

Dear Client,
Sale deed registered executed based on General power of attorney is valid.
Thank You.

Anik Miu
Advocate, Bangalore
4635 Answers
50 Consultations

4.9 on 5.0

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