• GPA property purchase

Hi,
Require legal opinion on validity of below transaction.

1. "A" had given GPA (for consideration amount) & Possession agreement to "B" in year 1999. This is notarised GPA & not registered because of financial problem of buyer & same reason is mention in GPA also. GPA carries Name & License number & signature of notary.
2. Khata transferred in the name of "B" by Bruhat Bangalore Mahanagara Palike. 
3. "B" executed sale deed in name of "C" which is registered & stamped in registrar office in yr 2003.
4.Again Khata transfered from "B" to "C" by BBMP.
5."C" executed gift deed to his brother "D" in yr 2013.
6.Encumbrance certificate shows all the above transactions ie "A" to "B" via GPA by GPA holder, "B" to "C" via sale deed & "C" to "D" via gift deed.
7.Property tax is paid upto date by "C" & "D".

Now pls suggest if we can purchase this plot from "D" as seller & "C" as confirming party.

If this plot can be purchased, then what precautions to be taken?
Asked 2 years ago in Property Law from Bangalore, Karnataka
Dear Client,
Yes you can purchase the said plot from D without any fear. Before purchase issue a public notice in local news paper about the agreement to purchase , if any body have objection may contact the purchaser with relevent documentary evidence within 7 days. If no body object the notification, you can proceed for registration.
Mohammad Khaleel Ahmed
Advocate, Hyderabad
184 Answers
1 Consultations
3.9 on 5.0
1)title to property is not clear and marketable 

2)power of attorney  for sale of property by A to B has to be duly stamped and registered . 

3) sale deed had to be entered into between A and B . mere possession agreement is not sufficient 

4)contact a local lawyer before purchase of the property . the possession agreement and other documents mentioned by you have to be gone into before giving any legal opinion
Ajay Sethi
Advocate, Mumbai
23325 Answers
1220 Consultations
5.0 on 5.0
1.  Although without making a threadbare perusal of the documents in question it is not possible  to opine with exactitude, yet it can be said that purchasing this property under the given circumstances, wherein the POA made by A in favour of B is not registered, will be legally imprudent. 

2.  Please note that a possession agreement is not a document of transfer of ownership. If the possession agreement is not preceded by sale deed there is no transfer of ownership from the seller to buyer.

3. Show all the documents to a lawyer to get a clear picture.
Ashish Davessar
Advocate, Jaipur
18167 Answers
449 Consultations
5.0 on 5.0
A. Title of the property is not clear. Unregistered GPA has been executed by the A in favor of B with notarized is not legally valid in the eyes of law due to if any property, alienation or transferring right created or delivery of possession mentioned the same it must be registered. Unless registered the same all transactions after the GPA can be voidable by approaching the Court.

B. Possession agreement doesn't convey of any title and it is merely creating interest itself over the property.

C. Hence, defective title appearing in your case. Contact local lawyer for more clarification.
B.T. Ravi
Advocate, Bangalore
736 Answers
30 Consultations
5.0 on 5.0
Hi, from the plain reading of your narration we say that you can go ahead with  the transaction but one thing is very much important we have to scrutiny the title for more then 30 years so it is better contact any advocate and get an opinion so that you can protect your interest and you can invest your hard earned money and if the title is not clear you are in trouble.
Pradeep Bharathipura
Advocate, Bangalore
4105 Answers
133 Consultations
4.3 on 5.0
Hello,
From your description the title of the property is disputable as the POA was not registered and without a registered POA sale is not possible and there doesn't seem to be a clear title as a result.
Hence if the first holder of title or anyone else goes to challenge title you can land in legal hassle
It would be advisable to show all documents to a lawyer in your locality to seek opinion.
S J Mathew
Advocate, Mumbai
1950 Answers
65 Consultations
5.0 on 5.0
1. The POA executed by A in favour of B needs to be seen before suggesting,

2. Apparently, the only mistake is that the POA executed by A in favour of B has not been registered making it invalid,

3. So, the subsequent gift deed executed by  to D becomes invalid since the property of A can not be sold by B with the invalid POA to C,

4. Contact a local lawyer and show him the POA.
Krishna Kishore Ganguly
Advocate, Kolkata
12127 Answers
233 Consultations
5.0 on 5.0
As per your case there are no clear marketable title and if GPA is given to sell it must be registered so the gift deed executed by D and the sake itself is boid
Jeshma Mohandas KP
Advocate, Kozhikode
567 Answers
1 Consultations
3.5 on 5.0
The GPA is not registered, hence does not have evidentiary value.  Notary has no value for immovable properties.  For transfer of all immovable properties, registration is compulsory.  At least get it registered now. Except this, the flow of title is ok.  Apart from the above, you have to check up whether the layout is genuine or not.  You have to check up how did “A” got the property.  You have to assure that this particular Sy.No. should be reflected in the revenue records.
Ravinder Pasula
Advocate, Hyderabad
316 Answers
68 Consultations
4.9 on 5.0
1.  Please clarify whether 'D' has got BBMP A Khata or entry in BBMP B Register in the first instance.

2.  Registration of GPA is a must only subsequent to Supreme Court Judgement of 2011 and it will not apply to pre-2011 cases.

3.  Since 'B' registered Sale Deed in favour of 'C' and all statutory payments made to State Government in 2003 itself, the title to 'C' is in order.

4.  Moreover Khata was mutated in favour of 'C' by BBMP way back in 2003 itself, i.e., before the Supreme Court judgement of 2011 and the registration of GPA was not compulsory in the year 2003 and the GPA entered into after 2011 has to be compulsorily registered.

5.  If the Gift Deed executed by 'C' in favour of his brother 'D' is duly stamped and registered before the Registrar/Sub-Registrar, then it is in order and the 'D' will have absolute right to transfer the property to any body.

6.  At present if the Khata is in 'D' s name and mutated in his name in the revenue records, then you can proceed further, subject to getting the documents verified by a local Advocate.

7. It is true that unregistered GPA is not valid, if it is/was executed subsequent to Supreme Court judgement of 2011.
Shashidhar S. Sastry
Advocate, Bangalore
1242 Answers
59 Consultations
5.0 on 5.0
1. as title of said property is not clear so i advise you not to purchase it.

2. get all chain documents of said property verified by local lawyer also.
R.K. Nanda
Advocate, New Delhi
457 Answers
0 Consultations
3.8 on 5.0

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