Registered GPA of farmland in Karnataka - validity, risks
I am planning to buy an agricultural land (Kushki land) through registered GPA. Seller has received the property from his father and ready to get GPA's done from his only sister & his adult children as well. We are going for registered GPA and not for sale deed, just because property does not have AkarBand/Tippan. Getting this takes over 6 months & Seller stays far-off place and wants to get this done in his current visit.
The property is located in Karnataka. All records of the property is clear. Post GPA, I am intending to transfer the property to my name as soon as AkarBand/Tippan copy is available.
1) Later - when I receive the AkarBand/Tippan copy, Can I register the property on my name without involvement of "Current Owner" (like signature/etc)
2) If (1) is not possible, Can I register it on my wife/father name?
2) Can the provisions be made in registered GPA agreement such that, if the seller or buyer dies (post GPA registration but before actual property transfer), GPA is transferred to buyer's descendants. and Seller and his descendants have no rights.
3) What are the risks if any?
4) Can there be a side agreement to cover the risks, if any?
Our local lawyer's suggested that, Since we are paying 5% stamp fees and this is a genuine transaction, This is risk free and can be done.
Looking for additional opinions.
Asked 5 months ago in Property Law from Shivamogga, Karnataka
It is not advisable to buy property merely on regd power of attorney
2) on bass of POA you can execute sale deed in favour of family member
3) if GPA is coupled with considerable it is irrevocable and even on death of principal it does not come to an end
Hi, It is my considered opinion don't go for GPA transaction because you have to pay the stamp duty on market value and after that if you want to register your property to your name or your wife to whomsoever then again you have to pay the stamp duty on market value.
2. It is better you have to entered into agreement of sale without possession and after obtaining the entire documents from the vendor you can register your property in your name.
The land in above question is part B. Part A (different survey number) has all the required documents clear and hence, it will be transferred to my name through sale deed. Given this, Seller wants full money (whole-some deal). And prices are negotiated such that, additional burden of stamp duties are taken care. Given this, Our lawyers felt GPA is much better than just sale agreement (As we are paying full amount). So my question is - if the GPA agreement is made to include clauses such as "irrecoverable" and "valid even after deaths of parties involved", Would such clauses are legal, will it hold in court of law if adverse situations arise (though, less likely) ?
Asked 5 months ago
if GPA is coupled with consideration it is irrevocable
2)you can mention that GPA is irrevocable
3) S. 202 of the Contract Act lays down the rule that an authority coupled with interest is irrevocable. S. 202 of the Contract Act states that "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 authority of an agent is given by deed, or for valuable consideration, for the purpose of effectuating any security, or of protecting or securing any interest of the agent, it is irrevocable during the subsistence of such security or interest.To make the authority irrevocable, the agent must have an interest in the property which forms the subject matter of the agency. 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 any express contract, be terminated to the prejudice of such interest.