• Can GPA holder give GPA to another person for same property

We are looking to buy a property in Bangalore. The owner (O_old) of property has given GPA to A1. Now A1 has given a GPA for the same property to another person A2. A2 has sold the property to the current owner O_new. They say that the GPA's are registered. A2 is willing to be the consent witness during our registration and also give his family tree and signatures. 

1988 - O_old registered GPA to A1
1995 - A1 registered GPA to A2
2016 - A2 sold land to O_new
2017 - notarized confirmation deed between O_old and O_new

Q1. Given this situation can I buy the property from O1.
Q2. Do I need any other documents to be sure of the purchase?
Q3. What are the risks involved?
Asked 2 years ago in Property Law
Religion: Hindu

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11 Answers

Purchasing a property from alleged owner holding GPA is unsafe and illegal too. GPA is not a valid document of ownership. Law too  does not recognize GPA as proof of ownership. Secondly as per law, if first owner who had given first GPA to A1 had died then on his death all GPA including GPA of A1 stand automatically stand cancelled and null and void. Check as to whether origional owner is alive or not on date. If owner is not alive and if owner had expired before 2017 then sale to O in 2017 itself is illegal and void. 

Siddharth Srivastava
Advocate, Delhi
1551 Answers

Confirmation deed is required to be looked into. If orgional owner was alive in 2017 then why origional owner have not executed sale deed? All documents are required to be looked into.

Siddharth Srivastava
Advocate, Delhi
1551 Answers

Power of attorney cannot further delegate power unless there is a clause to that effect in power of attorney executed by principal authorising POA to further delegate 

 

don’t purchase the property 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

 

Notarised deed of confirmation has no value 

 

it should be registered Deed of confirmation 

Ajay Sethi
Advocate, Mumbai
99775 Answers
8145 Consultations

An Attorney can't appoint another Attorney for the same property.

Notarised confirmation deed will not have the legal force as that of a registered confirmation deed.

If the Old owner is still alive, ask the new Owner to get a fresh confirmation deed registered in the jurisdictional Sub Registrar's Office.

Get the property papers vetted by any Lawyer before proceeding further.

Shashidhar S. Sastry
Advocate, Bangalore
5623 Answers
339 Consultations

The law is settled that though the general power of attorney holder cannot delegate his powers to another person but the same can be delegated when there is a specific clause permitting sub-delegation.

In this situation you may have to verify and confirm the recitals in the original GPA that whether this power agent has been authorised to appoint another power agent by this power agent in the original/primary power of attorney deed, if there is no such authorisation then this delegation of power can e held as invalid, therefore the subsequent transaction done by the second power agent is not legally valid hence it will be a defective title in the hands of the subsequent purchaser who bough the property from the second power agent.  

Therefore if the vendor is not having clear and marketable title to sell the property, it would not be advisable to purchase the property with defective title.

This will render the current purchase also an invalid transaction, yo may not get loan from the bank and it will become difficult to sell the property at a later date due to the said defect. 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

.The notarised confirmation from the original owner to the new owner in the year 2017 is not valid because it is a registered deed, the notarised document is not valid.

Therefore as discussed in the previous post, it clearly appears that the current owner is having  defective title hence it is not advisable to purchase this property until there is a registered ratification deed executed by the  original owner to the current owner of the property ratifying the the transactions that took place in between.

 

T Kalaiselvan
Advocate, Vellore
89977 Answers
2492 Consultations

Only if the terms of gpa is flouted and principal owner wants to terminate then he can give power to another person but the attorney holder can raise objections if performance of earlier gpa is not performed 

Prashant Nayak
Advocate, Mumbai
34514 Answers
249 Consultations

Dear client,  

Based on the information provided, here are some insights:

Q1. Given this situation, can I buy the property from O_new?
The situation involves a chain of transactions where the property was initially owned by O_old and subsequently passed through A1, A2, and finally to O_new. However, the legality and validity of the transactions depend on the local laws and regulations governing property transfers in Bangalore, India.

To ensure a safe purchase, it is crucial to conduct a thorough due diligence process, including verifying the authenticity and legality of the documents involved. Engaging the services of a qualified real estate lawyer would be highly recommended to review all the relevant documents and provide legal advice specific to your situation.

Q2. Do I need any other documents to be sure of the purchase?
Apart from the documents you've mentioned (GPA, confirmation deed), additional documents may be necessary to ensure a secure purchase. Some essential documents typically required in property transactions include:

a. Sale deed: This document should contain the details of the property, the names of the buyer and seller, the sale price, and any specific conditions or clauses.

b. Encumbrance certificate: This certificate provides information about any existing encumbrances, such as mortgages, liens, or claims on the property.

c. Khata certificate and extract: These documents indicate the ownership details and the property's assessment for tax purposes.

d. Completion certificate: If the property is part of a housing project, a completion certificate from the appropriate authority may be necessary.

e. Occupancy certificate: This certificate is issued by the local municipal corporation or development authority and confirms that the building is constructed according to approved plans and is safe for occupancy.

It's essential to consult with a real estate attorney or legal expert who can guide you on the specific documents required in your jurisdiction.

Q3. What are the risks involved?
There are potential risks associated with the situation you've described. Some of the risks could include:

a. Legality of the transactions: It's important to verify the legality and validity of the GPA documents, including the registration processes followed. Improperly executed or unregistered GPAs may be considered invalid.

b. Chain of title: The chain of title is the sequence of historical ownership transfers. Any gaps or irregularities in the chain of title could raise concerns about the property's ownership and affect your ability to establish clear and marketable title.

c. Litigation or disputes: There is a risk that any previous or current owners may have legal disputes or claims against the property. These disputes can lead to litigation and potentially affect your ownership rights.

d. Verification of documents: It's crucial to thoroughly examine the documents related to the property's ownership, including the GPAs, sale deeds, and any other relevant documents, to ensure their authenticity and legality.

 

Anik Miu
Advocate, Bangalore
11014 Answers
125 Consultations

Do A1 GPA having  a clause to further delicate or authorize third person to act on behalf of O and A1 ? If no than POA of A2 is invalid.

What is the language of confirmation deed ?

All link documents must check to precisely advise if purchase is secure or not.

Yogendra Singh Rajawat
Advocate, Jaipur
23079 Answers
31 Consultations

- As per Supreme Court in the case of Suraj Lamp & Industries Pvt. Ltd. Vs State Of Haryana held , that sale transactions carried in the name of GPA 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.

- However, as the GPA for A1 & 2 was executed prior to passing this judgment , then it can be said valid 

-  Further, the GPA executed after 2011 will not termed as valid , and hence A2 was having no right to sell the property to O-NEW . 

- However, if A2 transferred the property by way of registered sale deed then there is no risk 

- A notarized deed /agreement related to property transfer is not valid. 

Mohammed Shahzad
Advocate, Delhi
15814 Answers
242 Consultations

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