• Irrevocable GPA given to builder valid after the death of executor

Hi,

I am in the process of buying a property from a builder who has entered into a joint development agreement with the land owner and also got an irrevocable GPA from Land owner to sell his 68% share in 2013 till all his shares are sold

Now the land owner has expired, is the irrevocable GPA still valid? Can builder sell his shares with the GPA he has currently or do the builder need to get new GPA from the land owner legal heirs?

Please advice,

Thanks
selva
Asked 8 months ago in Property Law from Bangalore, Karnataka
Religion: Hindu

in the event GPA is coupled with consideration it does not expire on death of principal .section 202 of Indian contract act provides that power of attorney coupled with consideration is irrevocable and cannot be terminated even upon death of principal 

2) builder can sell the shares on basis of said POA 
Ajay Sethi
Advocate, Mumbai
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Hi
The irrevocable GPA will NOT be valid any more. 
Upon the demise of the owner, the GPA granted by the owner to the builder also expires. 
The GPA is now defunct and cannot be operative. 
The builder/ developer should get a fresh GPA from the legal heirs of the owners to sell his 68% share till all of his shares are sold. 
Hope this helps.
Rajgopalan Sripathi
Advocate, Hyderabad
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1) if builder had paid money to landowner for development of plot of land and land owner executed POA in favour of builder it would be GPA coupled with consideration 

2) under section 202 of contract act said GPA does not come to an end on death of landowner 

3) check clauses in POA regarding money paid by builder to land owner 
Ajay Sethi
Advocate, Mumbai
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1222 Consultations
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a power of attorney is valid only upto the time the executant is alive. In this case, the land owner has given irrevocable rights of development coupled with power to sell the developers share in favour of intending purchasers therein. Now in the interim if the land owner/executant dies, his legal heirs must execute a further GPA for the developer to continue to have absolute rights to sell his share even after the death of the original executant. 
Kiran N. Murthy
Advocate, Bangalore
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irrevocable GPA is treated as part performance of the one party of GPA. if one party to the contract has performed his part according to the agreement he can compel the other party to do perform his part. 

in your case builder has performed his part according to gpa so he can compel the legal heirs of land owner to perform (execute sale deed) his part. 

part performance is given under section 53  A of Transfer of property act. irrevocable GPA is valid even after death of land owner.   
Shivendra Pratap Singh
Advocate, Lucknow
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Now the land owner has expired, is the irrevocable GPA still valid? Can builder sell his shares with the GPA he has currently or do the builder need to get new GPA from the land owner legal heirs?

The term irrevocable GPA is a misnomer. In fact, GPA can never be irrevocable as it could be revoked at any given moment by the owner who delegates powers to the power of attorney to someone on his behalf. The GPA cannot be valid after a person's death as the GPA elapses after the death of the person who executed it. The recent SC ruling making GPA transactions invalid has been hailed as a step towards safeguarding the interests of end users. The ruling comes down heavily on the black marketeers who were siphoning the gains of their "parallel economy" into benami transactions. 
A simple answer to your question is the POA agent has no authority to hold the power after the death of the principal who executed the said deed in his favor hence he may be asked to get a fresh POA deed from the legal heirs of the deceased principal in order to avoid future litigation in this regard if you do not want to lose your hard earned money.





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T Kalaiselvan
Advocate, Vellore
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ould you please explain with an example on what is "GPA coupled with consideration"?
How to find out from the GPA that whether it is coupled with consideration or not?
How are all the clauses to look for in the GPA to find it is with consideration?
Also explain the law "section 202 of Indian contract act" in simple understandable terms.

The GPA coupled with interest means that if the builder who is a GPA himself has entered into an agreement (JDA) with the landowner and paid him the consideration amount as per the agreement conditions, and the the other party has executed a power of attorney deed in favor of this builder promising him the property as per the conditions of the said agreement, this can be termed as coupled with an interest to the builder and the revocation of the deed for ny reason would cause heavy loss to the builder, hence it can be said to be an irrevocable deed. 
The provisions of section 202 of contract act is reproduced below with an illustration to make you understand the meaning thereby in plain language:

202. Termination of agency, where agent has an interest in subject-matter.—Where the agent has himself an interest in the property which forms the subject-matter of the agency, the agency cannot, in the absence of an express contract, be terminated to the prejudice of such interest. —Where the agent has himself an interest in the property which forms the subject-matter of the agency, the agency cannot, in the absence of an express contract, be terminated to the prejudice of such interest." 


Illustrations
(a) A gives authority to B to sell A’s land, and to pay himself, out of the proceeds, the debts due to him from A. A cannot revoke this authority, nor can it be terminated by his insanity or death. (a) A gives authority to B to sell A’s land, and to pay himself, out of the proceeds, the debts due to him from A. A cannot revoke this authority, nor can it be terminated by his insanity or death."
(b) A consigns 1,000 bales of cotton to B, who has made advances to him on such cotton, and desires B to sell the cotton, and to repay himself out of the price the amount of his own advances. A cannot revoke this authority, nor is it terminated by his insanity or death. (b) A consigns 1,000 bales of cotton to B, who has made advances to him on such cotton, and desires B to sell the cotton, and to repay himself out of the price the amount of his own advances. A cannot revoke this authority, nor is it terminated by his insanity or death."
T Kalaiselvan
Advocate, Vellore
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A power of Attorney is always revocable. In case any such condition (Power of Attorney is irrevocable) exist in POA, such condition is void. Moreover, when person executing power of Attorney is dead the same ceases to exist.Thus after the death of executor of power of attorney, a fresh power of attorney is required from legal heirs of the original principal or legal heirs may themselves execute the deed of conveyance. 
Ashish Davessar
Advocate, Jaipur
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