Buying a property from GPA holder Bangalore
I am planning to buy a property in Bangalore and here is the scenario
- Property has been purchased by Ms.XYZ via GPA holder for Mr.ABC (year 2010)
- Ms.XYZ and Mr.ABC are father & daughter
- EC (encumbrance certificate) state the Property of Ms.XYZ represented by Mr.ABC
- Sale deed executed by Mr.ABC
- Now, I am buying this property
The problem is Ms.XYZ can not be present as she lives in abroad. But Mr.ABC will come for agreement of sale & registration.
- Mr.ABC has valid GPA copy registered in 2009
- Is it legal to buy this property ? if yes, then what should be taken care while executing the deal
- Will I face any legal obligation, it at all I would like to sell this property in future..
Looking for valuable opinion on this..
Asked 1 year ago in Property Law from Bangalore, Karnataka
Absolutely yes. No worries. However for safety sake ask for certified copy of registered power of attorney and also a declaration / sworn affidavit by original owner that she is ok for the GPA to execute the sale deed on her behalf . She can go to the nearest indian embassy and sign the affidavit and send over the attested document to you. That will make the deal totally transparent.
1) since daughter has executed registered power of attorney in favour of father he can execute regd sale deed your favour
2) check whether property taxes have been paid till date
3) in case it is flat in co operative society seller should obtain NOC from society for sale of flat
4) also no due certificate from society
5) contact a local lawyer and have the sale deed vetted by him before you purchase the property
1. Without perusing the GPA, it will be difficult to arrive for the correct Opinion.
2. Does the GPA clearly gives the POA holder the authorisation to sell this particular property.
On what basis do you say that the property was purchased through GPA if the sale deed had been executed directly by Mr.ABC? Be that as it may, if the title of Ms.XYZ is clear then she can execute a GPA in favour of her father to enter into an agreement to sale and also execute the sale deed on her behalf. The said GPA has to be attested at Indian Consulate in her domicile and then registered in India. Get due diligence conducted by a lawyer before purchasing the property.
In this case -
- On whose name payment should be made ? Ms.XYZ or Mr.ABC (GPA holder)
- Also, TDS should be paid on behalf of Ms.XYZ PAN or Mr.ABC PAN ?
- What proof we should ask to check validity of GPA ?
Asked 1 year ago
payment should be made in favour of the owner ie Mrs XYZ . TDS should be paid on behalf of Mrs XYZ
GPA has to be registered . if GPA is not regd then POA holder cannot sell the property
1. It depends on the narration in the GPA. If Mrs. XYZ has authorized Mr.ABC(GPA holder) to sell the property and to receive and utilize the sale proceeds fully all alone, then the payment should be made to Mr.ABC(GPA holder). If not the payment has to be made to Mrs. XYZ only and not to Mr. ABC.
2. TDS should be paid on behalf of PAN of the person in whose name the DDs for payment is issued. It depends again on the narration in the GPA.
3. The GPA should be a registered one and it should be valid as on the date of registration of the property. To check the validity of GPA get a certified copy from the concerned Sub-Registrar's Office and to check its authenticity.
1. In favour of the actual owner.
2. The buyer needs to deduct tax while making the payment to the seller, if the cost of the immovable property (other than agricultural land) exceeds Rs 50 lakhs under section 194IA. Further the provision will apply to the primary booking with the builder and also the secondary resale in the market. The rate at which tax is to be cut is 1%, but it would go up to as high as 20% if the seller does not disclose his/her permanent account number. The provision will apply even when the property has been financed through a bank loan.
Payment should be made to owner( safest and preferred way). TDS also to be paid in the name of owner.
Presentation of original registered gpa is good enough. Check it and take a xerox copy of the same and keep it for your records.