Hi, I am planning to buy an individual site from person B. Person B purchased the whole land from person A using a registered GPA and took approvals and developed it as a layout. Now from this layout I am planning to purchase a site (I am the first one to buy a site here)from person B, who will come for registration. 1. Should person A also come for individual site registration? 2. Will there be any problem in availing the loan if site is purchased from a GPA holder? 3. Is there any chance by which we can ask the person B to convert this GPA as a sale deed?
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1. Since it's through a registered GPA the presence of 'A' is not necessary. However there's Hon'ble Supreme Court judgement by which transfer of property through GPA is not allowed.
2. Show the property documents to any Lawyer to obtain clear opinion whether to purchase the property or not.
3. Yes, it's possible. You can request the person 'B' to convert this GPA to sale deed.
A presence is not necessary
no problem in availing loan as A had executed registered POA in favour of B
The original land owner in order to establish that he is alive, he can sign as an attesting witness.
The GPA holder is selling the property on behalf of the original land owner hence there cannot be any problem.
The GPA holder cannot get the property sold to him by the landlord because it involves lot of money towards stamp duty.
If your advocate recommends the purchase you may proceed accordingly.
- The Supreme Court in the case of Suraj Lamp & Industries Pvt. Ltd. Vs State Of Haryana 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.
1. Yes
2. Mostly bank not sanctioned loan on GPA
3. Yes , if A is not ready to support
Dear Client,
When purchasing a site from someone who has already developed a layout, the registration process involves transferring the property from the seller to the buyer, Person A, who sold the land to Person B, may not need to be directly involved in the registration of the individual site unless there are specific legal requirements or encumbrances that necessitate their presence. Banks/Lenders often prefer transactions to be backed by clear and legally sound documents. Purchasing a site from a General Power of Attorney (GPA) holder might raise concerns for some financial institutions for granting loan. It is Suggested to check with Banks/ lenders about their policies regarding loans for properties purchased through GPA. A GPA holder can execute the sale deed if the GPA is registered and stamped. Only the registered owner can execute a GPA to empower the holder to further execute any kind of deed or transfer.
Yes you can buy but need to execute registered sale deed for the same
