Legal Advice for Buying a Plot Around Hyderabad - Developer Acting Under GPA and Ownership Concerns
Dear Lawyers,
I am planning to buy a residential plot in Telangana that is part of an HMDA-approved layout. The developer is acting under a General Power of Attorney (GPA) granted by the landowner. However, there are gaps in the ownership history, and I have concerns about the legal risks associated with this purchase. Below are my questions:
1)Ownership and Title Verification: How can I verify the complete ownership history of the property, especially if records do not explain how the current landowner acquired it before 2005(pahani records from 2005)?Can the absence of earlier ownership details (e.g., inheritance, purchase, or government allotment) pose risks to my ownership in the future?
2)GPA and Developer Agreement: Is it safe to buy property where the developer, acting under a GPA, executes the sale deed without the landowner directly participating? What risks arise if the GPA is revoked, contested by the landowner or their heirs, or deemed invalid? How can I mitigate these risks?
Should the sale deed explicitly reference the GPA details and include an indemnity clause to protect me from future claims? What key clauses should I verify in the Development Agreement between the landowner and developer to ensure the transaction is legally sound?
3)Approvals and Land Use: Does HMDA approval ensure that the layout and property are legally compliant? Are there specific conditions in the approval I should verify? How can I confirm whether this project is registered under RERA? Is RERA registration mandatory for such developments? What should I check in the land conversion approval (agricultural to residential use) to ensure there are no pending conditions or risks?
4)Registration and Finalization: Should I insist on the landowner co-signing the sale deed along with the GPA holder (developer) for added security? What steps can I take to ensure the sale deed and registration process are legally binding and protect me from third-party claims?
5)General Risks: How can I verify that the property is not classified as Waqf land, Full Tank Level (FTL),Hydraa or government-assigned land, or forest land? Are there risks of undisclosed encumbrances or claims from earlier owners or legal heirs, and how can I protect myself?
6)Is title insurance or any other insurance recommended in this case, and what specific risks should it cover?
7)Final Advice:Based on the above, would you recommend proceeding with this purchase? What are the key precautions I should take to ensure the title is clear and ownership is secure?
Additional Context:
The land conversion is approved for residential use.
The HMDA layout has been sanctioned.
The sale deed will likely be executed by the developer under the GPA.
There are no records explaining how the landowner acquired the property before 2005.
Please advise on the legal risks and steps I should take to safeguard my investment.
Thanks in advance
Best regards
Asked 1 year ago in Property Law
Religion: Muslim