• Agreement of sale and GPA holder is in USA, can it be legal

Mrs. "X" has purchased land from Mr. "P" by paying 95% of the amount and taken Agreement of sale cum GPA, and has registered the same on [deleted]. Now Mrs. "X" is willing to sell the same land to Mr. "A". But Mrs. "X"(Agreement of sale cum GPA holder) is in USA and her father is acting as a presenter. Mrs. "X" is telling that she will sign the sale agreement and sale deed in USA and will send through embassy and her father will be the presenter on behalf of her. Is this a legal transaction? what is the role of Mr. "A' in this scene..? weather his sign is required in the sale deed..?, and please guide any other precautions Mr. "A" has to exercise to make the transaction legally correct.
Asked 8 years ago in Property Law
Religion: Hindu

7 answers received in 1 day.

Lawyers are available now to answer your questions.

8 Answers

First of all it is to be ensured that if the principal of X who is a GPA of the said principal, is alive on this date.

Whether the GPA deed in her favor is valid on this date.

The sale agreement in her favor will not confer title to her to the property.

She should have a valid sale deed duly registered on her name to confirm marketable title to her on the property.

If X is not having any right to sell the property, any action intended to be done by her either in US or in India to transfer the property by sale is invalid.

You should be aware of the legal fact that a GPA is not the owner of the property and if a GPA is trying to sell the property on behalf of the principal, the said principal has to ratify or to submit a life certificate to effect the registration of the sale deed in favor of the prospective purchaser.

A sale agreement entered between a buyer and vendor cannot be a title document and will not confer marketing title or rights to the property under agreement to the buyer.

If both the above issues are not clarified properly there will be no use to buy this property which may fall into litigation sooner or later by which the new buyer will have no respite and may stand losing time, energy and money.

Consult and take an opinion from the local lawyer before venturing into purchase.

T Kalaiselvan
Advocate, Vellore
84896 Answers
2190 Consultations

5.0 on 5.0

Sale through GPA has been declared as illegal by the Supreme Court of India. The title of Mrs.X is defective, therefore the title she will pass to any buyer will also be defective. There has to be a sale deed executed by Mr.P in favour of Mrs.X.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

1) Insist on Mrs X to come down to India for execution of sake deed in your favour

2) Mrs X is holding power of attorney from Mr P

3) she cannot execute POA in favour of her father for execution purposes

Ajay Sethi
Advocate, Mumbai
94695 Answers
7528 Consultations

5.0 on 5.0

Whether the sale deed is registered in the name of Mr.X ? If it is registered then Mr.X has the capacity to sell the property to other person. Agreement for sale is mere a document which indicate the willingness to sell the property. An agreement of sale constitutes the terms and conditions of sale of a property by the seller to the buyer. These terms and conditions include the amount at which it is to be sold and the future date of full payment.

If the sale deed is not executed then the procedure adopted is

1. P has the capacity to put the signature and execute the new sale deed between Mr.P and A .

2. Pay the balance consideration and ask P to put the signature in the new sale deed infavour of A. No need a POA and presence of X.

3. The same time cancel the registered sale agreement before execution of new sale deed

Ajay N S
Advocate, Ernakulam
4072 Answers
111 Consultations

5.0 on 5.0

Agreement for sale is a agreement between parties that on such and such terms the sale to take place. Terms and conditions could be agreed and sale to be completed on agreed future date with payment.

Sale Deed is a document executed at the time of finalizing the sale deal. when entire amount is paid and property is conveyed sale deed is executed.

Deed of assignment is a deed by which interest in the property is transferred and assigned to another. Like tenancy rights and other rights of property can be assigned as it cant be sold.

Ajay N S
Advocate, Ernakulam
4072 Answers
111 Consultations

5.0 on 5.0

The power of attorney executed by Mrs X in favour of Mr A must be a registered document authorizing him to present the GPA on behalf of Mrs X before the registering authority in respect of the same property now sought to be sold. If this done, then as stated by Mrs X the sale agreement and Sale deed can be duly signed by her and duly attested by the embassy and that document can be presented by her PA Holder Mr A on her behalf before the sub-registrar, at the time of registration his photo graph and thumb impression alone will be collected and duly stamped on the back of the sale deed. This procedure would suffice.

Kiran N. Murthy
Advocate, Bangalore
1298 Answers
194 Consultations

5.0 on 5.0

Hi, "X" has to execute GPA in her father favour and her father can execute the sale deed in favour of "A".

Pradeep Bharathipura
Advocate, Bangalore
5604 Answers
335 Consultations

4.5 on 5.0

if the sale deed not registered in favour of Mr.X , then Mr. X can't execute a valid sale agreement or sale deed infavour of Mr.A .

Ajay N S
Advocate, Ernakulam
4072 Answers
111 Consultations

5.0 on 5.0

Ask a Lawyer

Get legal answers from lawyers in 1 hour. It's quick, easy, and anonymous!
  Ask a lawyer