Hi, Mr.A has given GPA to Mr. B on 22/05/1989. Mr. B through an absolute sale deed entered on 20/05/2015 has sold the property to Mr. C. Now Mr. C is intending to sell the property to another person. However, a lawyer has advised the new buyer that there is a supreme court order prohibiting the use of GPA for transfer of property, as this was leading to loss of stamp duty to the Government. Hence, he has informed the new buyer not to buy the property unless there is a confirmation deed signed by Mr. A (But Mr. A and his entire family are not traceable). Questions - 1. Whether the lawyer's advice is correct. 2. Whether the buyer can buy the property (if yes, what precautions should be taken) Appreciate your time and thanks in advance.
1. The Hon'ble Supreme Court judgement prohibiting the use of GPA for transfer of property came in 2011. In the instant case, Mr. A has given GPA to Mr. B on [deleted]. In other words, the GPA executed by Mr. A in favour of Mr. B is much much before the Supreme Court judgement and hence it will be valid.
2. The Buyer is advised to get the property documents vetted by any Lawyer before proceeding further.
1) are A and B related
2) there is no bar in execution of POA in favour of family member for sale of property
3) the POA for sale of property should be registered
4) Buyer can purchase property from C if above conditions are met
Sir, Thanks for your quick response. A and B are not related. Whereas B (Mother) and C (Daughter) are related. Irrespective of relation, C has paid money to B and brought the property through a sale deed. Do confirm if the new buyer can buy property from C. And what precautions should be taken (like advertising in the newspaper or likely wordings in the newspaper advertisement etc.). The earlier lawyer had advised that if Mr. A or any of his sons/daughters/wife files a case, then the case will go in their favour (i.e. Mr A) and sale deed (between B and C) will become VOID. Very much appreciate your time and advice.
Don’t purchase the property
2) your lawyer has advised you correctly not to purchase the property unless deed of confirmation is executed by A
Earlier and present answers are given based on your narration of the question. If it were to be "A"' s self acquired property, then he had the impeccable legal rights over the property to take any decision according to his sweet will and hence "A' has given the GPA to "B" in 1989.
HOWEVER THIS SHOULD NOT BE CONSTRUED AS LEGAL OPINION, AS I HAVE NOT STUDIED THE PROPERTY DOCUMENTS. Please obtain legal opinion for the property from any Lawyer and then only proceed.
1. Your lawyer is correct in his advice, i.e., if the Principal was not alive at the time of execution of this sale deed by this power agent then the GPA deed becomes invalid/infructuous and stands automatically cancelled. Therefore the power agent has no title to sell the property in favor of C at that time.
If your vendor is not able to produce the required details then you may better rethink about purchasing this property.
2. If in case the principal had died even before3 the executio of the sale deed by B in favor of C then the property upon the automatic cancellation of the GPA deed, shall devolve upon the legal heirs of the deceased owner. They may file a suit for cancellation and partition , in that case the purchaser will be impleaded as necessary party to the civil litigation.
The lawyer's advise appears to be correct and proper.
If in case the principal had died even before the execution of the sale deed by B in favor of C then the property upon the automatic cancellation of the GPA deed, shall devolve upon the legal heirs of the deceased owner. They may file a suit for cancellation and partition , in that case the purchaser will be impleaded as necessary party to the civil litigation.
Therefore you may ask your vendor to produce the NOC or ratification deed duly executed by A in favor of C for the sale deed executed in her favor by her mother, i.e., B.
Yes you can't sell the property through gpa only you need to execute sale deed. It doesn't mean a gpa holder can't sell. Gpa holder can sell provided sale deed is executed
- If the said GPA is given to relative B , and is registered then he was having his right to transfer the property to any one by way of sale deed. , and hence the said sale deed in the name of C is valid , and C can sell the property
- However, A was having right to sell the property to B , only during the life time of Principal, and not after the death of him.
- Further , your lawyer is referring the Supreme Court Judgment of Suraj Lamp Industries vs Haryana which was passed in the year 2011 ,
1. As GPA was executed before 2011 , then it is valid document for executing sale deed . However , as the sale deed was executed in 2015 i.e. after passing judgment , then there may be trouble .
- Further, as A & B are not related , then the said GPA was not valid to transfer the property
2. Not suggested
the title of C is defective and not clear and marketable
A sold the property to B vide a GPA. That is NO sale at all under the eyes of law
so B did not acquire any title at all from A
If B had no title then she could NOT pass any better title to C
The lawyer is correct
A or if he is dead then his legal heirs have to join in the sale deed between C and the buyer. In fact A or his heirs must be the vendor party since only they can convey title to the purchaser. C acquired no title from B. So C has to join as a confirming party. So only to that extent i would differ with the advise given by the lawyer
if A or his heirs are not traceable then C will have to first perfect her title by filing a suit against A or his heirs claiming that C has perfected her title in the property by way of adverse possession
as A or his heirs are not traceable it is very likely that the suit would proceed ex parte against them and C would get a decree without any opposition
once C gets the decree that she is the absolute owner of the property having perfected her title by adverse possession, she can then convey or sell the property to the new buyer, as her title would be then clear and marketable
Dear Client,
As per the facts which have been provided, your lawyer has advised correctly to not purchase the property without getting the deed of confirmation.
Thank You.
