• Clarification on property purchased through GPA

Hi All,
I wanted to reach out to get some clarification on a property transaction that I have done few years back. I have purchased a property that was transacted through a General Power of Attorney (GPA). However, I have come to learn that there might be an issue with this type of transaction, and I need your expert advice on the matter.

Here's a brief overview of the situation:

- The property was originally owned by Person A.
- On 14/10/2016, A Sale Agreement was executed between Person A and Person B; some amount was paid and it was agreed that the remaining amount to be paid in 3 months duration.
- On 2/12/2016, Person A issued a GPA to Person B, granting them full control over the property, including the right to sell it.
- On 27/01/2017, Using this GPA, Person B executed a registered Sale Deed in their own name, transferring all rights and the Khata into their name. In this Sale deed, there is no signature / attestation of Person A who issued GPA.
- On 29/08/2019, After holding the property for 2 years, Person B sold it to me in 2019.

Given that Person B acquired the property through a GPA and then sold it to me, I am concerned about the legality and potential issues that could arise from this transaction. Could you please provide your insight on whether there might be any problems with this transaction and what steps I should take to ensure everything is in order?

Thank you for your assistance. Looking forward to your guidance on this matter.
Asked 5 months ago in Property Law
Religion: Hindu

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15 Answers

Is GPA registered ? 

Is B close family relative of A 

 

if not has proper stamp duty been paid of POA 

 

kindly clarify 

Ajay Sethi
Advocate, Mumbai
99797 Answers
8147 Consultations

Whether the Person A was alive on [deleted] when the sale deed was registered in Person 'B' s name?. 

Shashidhar S. Sastry
Advocate, Bangalore
5624 Answers
339 Consultations

Transfer of property through POA was made invalid as per the Hon'ble Supreme Court's Judgement in 2011.

Shashidhar S. Sastry
Advocate, Bangalore
5624 Answers
339 Consultations

You have clear and marketable title to property 

Ajay Sethi
Advocate, Mumbai
99797 Answers
8147 Consultations

You have nothing to fear 

Ajay Sethi
Advocate, Mumbai
99797 Answers
8147 Consultations

The  transaction is perfectly valid. If there is any dispute regarding payment of sale consideration, it is between A and B. If a has any rights, it is against B, not against you.

Ravi Shinde
Advocate, Hyderabad
5133 Answers
42 Consultations

Yes you need to purchase the same through sale deed not gpa. Gpa can only be the medium to execute sale deed 

Prashant Nayak
Advocate, Mumbai
34529 Answers
249 Consultations

The original owner has not disputed the sale deed made by the GPA holder unto himself on the basis of the GPA deed executed in his favor.

It can be presumed that the GPA as executed by a registered document giving powers to sell or alienate the property in any manner in favor fo the GPA holder.

Therefore it can be construed that the GPA holder has paid the balance of sale consideration amount to the owner and got the sale deed executed unto him by himself on the basis of the GPA executed in his favor.

In my opinion there is no illegality in it. 

T Kalaiselvan
Advocate, Vellore
89998 Answers
2496 Consultations

It appears to be proper.

The GPA holder appears to have followed the procedures properly as per law, hence the reported transactions appear to be  legally valid 

T Kalaiselvan
Advocate, Vellore
89998 Answers
2496 Consultations

This confirms that the original owner was very well aware of the said transactions in respect of the property in question. 

Therefore the sale of property in your favor by your vendor is also proper and legally valid.

You can be free about it because you have a clear and marketable title to you. 

T Kalaiselvan
Advocate, Vellore
89998 Answers
2496 Consultations

A property sale done merely through a General Power of Attorney (GPA) without a proper, registered sale deed does not transfer legal ownership—as per Supreme Court rulings, GPA itself is not a valid instrument for transferring property title. However, if Person B, acting under a registered GPA from Person A, executed a registered sale deed in their own name (while Person A was alive), Person B would acquire legal title, provided all legal formalities were followed and there’s no fraud or forgery.

Since the final sale to you was via a registered sale deed from Person B, and if all stamp duties and registrations were properly done, your title is relatively secure. But:

  • Ensure the GPA was valid, registered, and explicitly authorized the sale.

  • Check there are no disputes or pending litigation from Person A.

  • Get the chain of documents legally reviewed by a property lawyer.

In summary:
Your purchase looks compliant if proper sale deeds were registered at every step. However, GPA transactions are legally sensitive—get documents verified by a lawyer to avoid future disputes. Avoid any future purchases based solely on GPA transfer.

Shubham Goyal
Advocate, Delhi
2082 Answers
14 Consultations

The transaction between A and B where A acted through his POA and thereafter from B to you, appears to be legal and valid 

The bar is against selling property by giving GPA to the buyer 

There is no legal bar however against an owner giving a GPA to another person for the purpose of registering the sale deed on behalf of the owner 

Yusuf Rampurawala
Advocate, Mumbai
7900 Answers
79 Consultations

Based on your description, you purchased a property in Bangalore from Person B, who had earlier acquired it using a registered General Power of Attorney (GPA) from Person A. Person B executed a registered sale deed in their own name using the GPA and later sold the property to you. Here are the key legal considerations and guidance:

A sale or transfer of immovable property in India must be completed through a duly executed and registered sale deed. The Supreme Court of India has clearly ruled (notably in the Suraj Lamp & Industries case in 2011) that sales of property solely through GPA, agreement to sell, or will are not legally valid conveyances of title. However, a GPA holder can execute a registered sale deed on behalf of the true owner, provided the GPA specifically authorizes the attorney to sell, and the transaction is registered with proper stamp duty.

In your case, Person B executed a registered sale deed in their own name under a GPA from Person A. If the GPA was registered, was not revoked, and Person A was alive and competent at the time, it is generally permissible for the attorney (Person B) to sign as "power agent" of Person A, executing the deed in favour of themselves, so long as the GPA explicitly allowed it. The sale deed’s validity depends on the substance and wording of the GPA, and strict compliance with the Registration Act and Transfer of Property Act.

Joint sales by GPA-holder to themselves (self-dealing) can be subject to extra scrutiny, and Person A’s interests must be protected. If Person A never challenged the transaction or revoked the GPA while alive, the deed stands a stronger chance of being accepted as valid, especially since the sale deed is registered and stamp duty paid. Mere registration of a GPA and sale deed, however, does not make up for fundamental defects in authorization or procedure.

When you purchased from Person B, you became a bona fide purchaser, provided you acted in good faith and the sale deed, GPA, and all property records were clear and unchallenged at the time of sale. Registered sale deeds are presumed valid unless proven otherwise, but a sale deed can be challenged in court if, for example, the GPA was forged, revoked, or fraudulently used; or if Person B did not have clear title at the time of your purchase.

Recommended Steps for You:

  • Obtain and carefully review the original registered GPA to confirm it expressly empowered Person B to sell and even transfer the property to themselves.

  • Obtain certified copies of the Sale Agreement(s), Sale Deeds, and mutation/Khata records.

  • Conduct a fresh encumbrance and title search at the Sub-Registrar Office and municipal/local records to confirm there are no adverse claims or prior disputes.

  • If possible, secure a declaration or indemnity from Person B regarding any past or prospective challenges.

  • If you find any ambiguity or if the GPA omits the authority for self-dealing, consult a local property law expert to assess risks and mitigation steps.

If Person A was alive, aware, and did not raise objections at the time, and all required legal formalities were complied with, your title is likely on strong legal footing for ordinary purposes. However, be aware that sales involving transfers by GPA—especially if the GPA holder sells to themselves—can be more susceptible to dispute than direct sales, and prospective purchasers in India are strongly advised to ensure all conveyancing formalities are strictly followed.

If you need assistance in scrutinizing your chain of title, conducting due diligence, or addressing potential challenges, please contact us at  for further guidance and legal support.

Yuganshu Sharma
Advocate, Delhi
976 Answers
2 Consultations

In certain regions, considering they may be Lal Dora areas, registration of sale deed is not allowed. Hence, property is transferred on GPA coupled with a Will and an Agreement to Sell. All documents need signatures of both the buyer and the seller, except for the Will which will bear the seller's signature. These documents are registered from the Revenue Department, although before the Court of law, it is a gray area. Be that as it may, there is a PM Regularization of Unregularized Properties Act which is under scrutiny. If the same is cleared, these properties will be allowed to be regularized to make things easier, provided the documents are proper. 

 

The chain of documents that you need to verify are the GPA, Will, and ATS from all previous sellers to their respective buyers to ensure the sale was proper. 

Devika Mehra
Advocate, New Delhi
50 Answers

Your case involves a property sold using a registered GPA (General Power of Attorney), which raises a few important legal concerns:

✅ Key Points in Your Favor:

1. Registered GPA – The GPA is valid if it was registered and executed voluntarily.

2. Stamp duty paid – This supports the authenticity of the transaction.

3. Person A alive at the time – GPA remains valid while the principal (Person A) is alive.

4. Sale deed registered – This adds legal weight to the transaction.

⚠️ Concerns:

Person B executed the sale deed to themselves using GPA – This is legally tricky and may be considered self-dealing, which courts may not uphold unless explicitly authorized in the GPA.

No signature from Person A in the sale deed, Normally, even under GPA, a self-sale should ideally have principal’s consent or ratification.

📌 What You Should Do Now:

1. Verify GPA language – Check if it explicitly allows Person B to sell to themselves.

2. Check for any challenge – If Person A or their heirs have not contested the sale till now (about 6 years), the risk reduces but not eliminated.

3. Get a title opinion from a property lawyer – A legal vetting of all documents including GPA, sale deeds, encumbrance certificates, and revenue records is essential.

4. Apply for a validation deed (if needed) – In some cases, you may file for a rectification or ratification if Person A is alive and cooperative.

✅ Conclusion:

The transaction may hold legal ground, but the self-dealing GPA use is a grey area. To protect yourself, get a thorough legal verification and consider title insurance or declaratory relief if needed.

Suresh Kumar Pal
Advocate, Allahabad
106 Answers

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