Property purchase from GPA Holder
I am planning to buy a land in Karimnagar, Telangana state, India. The sellers are GPA Holders ( Two joint holders) and the GPA is registered and stamp duty is paid. The GPA mentions about the sale done. The online land records of Telangana state show the GPA holders names in the website. I am yet to receive all the link documents. Could you please suggest if I can consider buying this property.
I just now got to know that Supreme Court has ruled that sale through GPA is invalid. I have paid a token advance of Rs 10,000 to the GPA Holders. So is it valid to purchase from them?
If it is valid to purchase from the GPA Holders, will I be registered land owner or will I be still a GPA holder. Please suggest. And will it be enough if the GPA holders executes a sale deed or do I need to get any additional documentation.
Thanks in advance.
Asked in Property Law from Karimnagar, Telangana
1) GPA holder can execute sale deed in your name .
2) the sale deed should be duly stamped and registered
3) please check whether original seller who executed GPA is alive or not
4) check whether sellers have original chain of documents
5) contact a local lawyer
When was the GPA executed. The effect of the decision is prospective and hence it does not affect of the GPA was done prior to passing of the SC decision.
Before buying any property one must show all the relevant documents to the lawyer who after causing investigation and necessary searches can opine on the title of the deed.
So meet a local alwyer for right advice. We, without checking the papers can not advise properly.
sale of property through gpa is invalid but when property is selling by gpa holder but buyer paid all requisite stamp paper and execute valid sale deed then it is valid.
if gpa is executed for the purpose of saving taxes then it is invalid. because it is prohibited by section 17 registration act
Hi, The registered GPA is valid. The GPA holders can enter in to sale deed with you. No worries. However get all the original link deeds at the time of registration.
However the most safest way to effect the sale deed if the land owner or his legal heirs are alive, is that they should sign the sale deed as sellers and the GPA holders can sign as confirming parties.
Hope this helps
1. In the case between Surya Lamp Vs. State of Haryana, 2012, the Supreme court has directed against sale through POA if the POA has been executed for commercial reason,
2. If old and ailing father executes and registers a POA in favour of his son for selling his property, then it is not invalid,
3. So, if the POA has been executed in favour of a third party for commercial reasion, then you should not buy the said property,
4. The POA is required to be perused to further advise in this regard.
A GPA holder can only sell the property for and on behalf of the actual owner when backed by express authority. In your case it seems that the title of sellers is traceable to GPA executed in their favour. If the GPA was executed prior to the SC judgment which is prospective and not retrospective then their title is as good as it would have been had there been a sale deed executed in their favour. Get the due diligence done through a lawyer.
First of all get all those link documents, ascertain the title of the vendor and not the GpA holder.
Take a legal opinion from a local property law practicing lawyer about the genuineness of the property and the seller.
If satisfied you can proceed with the purchase.
The supreme court ruling is that you cannot buy a property on the label or brand of a GPA, such purchase is invalid.
You can always buy a property from a registered GPA Holder, there is no legal infirmity in it.