Sell consideration in favour of GPA holder
Hi Ashish , I am going to buy a plot of 1000 sq.yrd, it is on the name of 2 brothers, both are NRI, one brother is coming in india with the registered GPA by 2nd brother in his name. he also has letter of consent & NOC which mention that he can have all sell consideration on his name. Is it valid to make all sell consideration in favour of GPA holder only. is there any ruling by supreme court regarding this matter
Asked 3 years ago in Family Law from Faridabad, Haryana
Hi, if the GPA executed by one the brother then it is valid document and one thing in the GPA is that there is a sale clause is exist and then only other brother has right to sale.
1) before purchase of property take 30 years title search
2) obtain certificate from lawyer that title is clear and marketable
3)you have not mentioned whether it is agricultural or non agricultural land
4) if non agricultural land take inspection of original documents whether collector has given permission for conversion of land
4) if land is is name of 2 brothers and registered power of attorney is issued by other brother you can enter into agreement for purchase of land with GPA holder .
you are advised to check all the title deeds at least 14 years prior. You can purchase the property through GPA holder, provided that, the sale consideration should be paid though demand draft or cheque in the name of the owner of the property according to their share of the property.
got it, but gpa holder is asking all the sell consideration on his name only. can we do that?,
will it be changeable by anybady in future..??
Asked 3 years ago
you refuse to give entire consideration in name of one brother only . you can insist that cheque would be issued in name of both t he brothers
According to land mark Judgements , the GPA holder is not entitle tor receive the sale consideration in his name. The cheque or Demand Draft should be drawn in favor of the original owner of the property. In your case you can issue the cheque in favor of two brothers jointly.
1.make payment by cheque or DD in the name of both the brothers to keep you on safer side legally.
2.go legally in the matters of money transactions.
Advocate, New Delhi
Hi, cheque or DD should be given in the name of two brothers only.
GPA holder cannot receive the sale amount in his name..cheque should be given in the name of seller
you should get letter of consent from both brothers, if they not agree on this then you should ask them to provide joint account, in which the sell amount will be transferred or deposited. you should prefer to make payment by demand draft only and divide 1/2 amount on each brother. If only one brother comes to sign on papers then he should has power of attorney. Check all the papers in regard of that land.
1. Against the said POA and NOC given by the co-owner brother in favour of another co-owner brother authorising the POA holder to collect the entire consideration in his name, you can certainly act accordingly,
2. However, to ensure that the exucator of the POA can not claim his share in future on any ground not known to you now, it is advisable to pay 50% of the consideration to each brother,
3. This step will insure you against any future litigation regarding payment.
1. Carry out the legal due diligence test before purchasing the property to avoid being enmeshed into lengthy and expensive court battles later on.
2. Visit the local court and avail the services of a local lawyer to ascertain if there is any lawsuit pending in the court with respect to this property.
3. Last but not least, find out the antecedent title of the land to know if the 2 brothers possess absolute ownership to this property.
4. It is advisable to remit the sale consideration through 2 cheques of equal amounts in favour of both the brothers.
Nothing left to add, because the querist only address Mr. Ashish to ask his opinion.
Advocate, New Delhi