• Flat purchase

Need some details and clarification am planing to buy a flat.. There is joint venture betn land owner and developer... 
Land is in the name of land owner and other family members like wife and two children. Both children given general power of ateorny to Father..
Now father has given GPA to builder and made agreement of proportions in flates 40%and 60%.
Now am planning to buy Builder potion.he is making sales agreement with me without involvement of land Owner.
1) shall I purchase the flat from builder. What will be further impact.
2) land owner can give GPA as he him self is a GPA for his children.
3) what should be the right way .
Asked 1 month ago in Property Law from Bangalore, Karnataka
Religion: Hindu
1. Once the POA has been executed in favour of the developer he can sell it to you by executing a sale deed. Check the GPA if it is registered and properly stamped though. The agent cannot go outside the realm of the instrument i.e GPA.

2. The right way would be to get all the documents vetted by a lawyer before you make a decision.
Ashish Davessar
Advocate, Jaipur
18158 Answers
449 Consultations
5.0 on 5.0
1) is the GPA  executed by children in favour of father  registered? 

2) is GPA by father in favour of builder registered

3) is development agreement registered? 

4) landowner can give GPA only for his share and not that of his children 

5) children have to execute GPA in favour of builder 

6) contact a local lawyer . get all documents vetted by lawyer . 

7) obtain certificate from lawyer that title is clear and marketable and then purchase property 
Ajay Sethi
Advocate, Mumbai
23284 Answers
1219 Consultations
5.0 on 5.0
Dear concerned 

A. Both the GPA  should have been registered in favor of the person nominated- if not then these are useless

B. The Builder can not transfer the ownership of the flat as he does not owns the land and any land / property transfer by GPA is not valid too. 

Hence please show your papers to local lawyer before investing/ buying this property .


Best of luck 
Atulay Nehra
Advocate, Noida
436 Answers
15 Consultations
4.7 on 5.0
If the Joint development agreement between land owners and developer is duly registered then the GPA executed by the land owner in favour of the developer must also be duly registered. Apart from the above, after obtaining the sanctioned building plan, the land owner and developer would have executed amongst them a notarized Sharing or supplementary agreement, evidencing the division of flats amongst the land owners and developer in their sharing ratio mutually agreed upon in the JDA. This is the standard procedure followed in Bangalore.
Now coming to your question,  father has gotten the GPA from his two children as the guardian, but he and his wife have executed the GPA in favour of the developer to sell the developers constructed area in favour of intending purchaser/s without their direct involvement, which is completely legal and can be accepted. Assuming that the children are minors, he being their natural guardian can take a GPA from them and represent them along with his wife.
Kiran N. Murthy
Advocate, Bangalore
765 Answers
51 Consultations
5.0 on 5.0
1.  In the JDA between the owner and the builder, the agreement says that builder is entitled to some percentage in return to his services to develop the property on behalf of the owner. This confers the builder with the power to sell the property he is entitled without seeking permission or NOC of the landowner, hence you can proceed with the purchase accordingly however, please note that a proper legal opinion from a local lawyer is always recommended before purchase.



2.  A GPA holder cannot execute another GPA based on the GPA in his name, this is a very serious concern which has to be taken care of before venturing into purchase and get clarified. 




3.  You may even discard the purchase if you dont get a convincing clarification about this GPA hassle.





T Kalaiselvan
Advocate, Vellore
14056 Answers
127 Consultations
5.0 on 5.0
As opined earlier, I reiterate that a GPA cannot execute another GPA on behalf of his principal to a third agent, this is not valid in the eyes of law.

The builder cannot assume power or consent from other owners on his own to proceed with the development of the property into flats or apartments on any basis, the JDA so obtained without the consent of other two owners is not legally valid and once those other two owners who have not given their consent decide to aproach court then th purchasers position will be very critical and may have to run between court and home for attending the unnecessary litigation or disputes. 

You are advised to obtain proper legal opinion before you make any payment towards purchase of the property from a local lawyer by producing the copies of the property papers before him. 
T Kalaiselvan
Advocate, Vellore
14056 Answers
127 Consultations
5.0 on 5.0
1) no delegated powers can be further delegated.. sons had delegated power to the father . he cannot further delegate it to builder

2) builder cannot sign agreement on behalf of 2 sons 

3) let sons execute POA in favour of builder
Ajay Sethi
Advocate, Mumbai
23284 Answers
1219 Consultations
5.0 on 5.0
1. If the sons have executed the GPA to enable their father to act as their attorney then he could have executed the GPA in favour of the builder on his own behalf and on behalf of his two sons.

2. The sons were not required to execute the GPA directly in favour of the builder.
Ashish Davessar
Advocate, Jaipur
18158 Answers
449 Consultations
5.0 on 5.0
If the GPA authorizes the attorney to appoint other person/s as PA Holders for execution of the development agreement, then the father can in turn authorize the developer otherwise this is not permitted. Ideally the 2 major sons should have along with their father and mother executed the GPA in favour of the developer, if this is not done, then the 2 major sons have to sign the sale agreement and sale deed as CONSENTING OR CONFIRMING PARTIES to avoid possible litigation or questions being raised by either one of them in the near future.
If this is done, it is perfectly legal and total peace of mind to you as a purchaser as well.
Kiran N. Murthy
Advocate, Bangalore
765 Answers
51 Consultations
5.0 on 5.0
1. Has the development agreement been registered? Has the POA executed in favour of the builder to  sale the flat of the building constructed up on the land of the land owners been registered? If yes, then you can buy the flat from the share of the builder. however, you are required to make a thorough search of the property and also verify  the agreements before deciding to buy the flat.

2. Landowner, being the GPA holder, can execute a GPA in favour of the Developer but as per the Supreme Court Judgment passed in the year in case of Surya Lamps .............Vs. State of Haryana, the said GPA in favor of the developer is required to be registered since the developer will further sale the flats falling with in his share.

3. No proble. The said two sons have executed POA in favour of their father authorising him to deal with their shares of the property which includes executing a POA in favour of the Developer.  In fact all the documents including the POAs are required to be scrutinised carefully before deciding to buy the flat.
Krishna Kishore Ganguly
Advocate, Kolkata
12113 Answers
231 Consultations
5.0 on 5.0
1. The GPA executed by bthe two major sons n favour of their father is perfectly legal.

2. The father's executing a GPA in favour of the builder for and on behalf of his two sons, being their GPA holder is also perfectly valid and legal if the two son's, in their GPAs executed in favour of their father, have authorised through there said GPA to execute any further GPA in favour of anybody to deal with their share of the said property.

3. Being the GPA holder to deal with the share of the properties of the said two sons executed by the father of the said two sons who has been authorised by the sons to do so by virtue of another GPA executed in favour their father, the builder can deal with the property for and on behalf of the sons.
Krishna Kishore Ganguly
Advocate, Kolkata
12113 Answers
231 Consultations
5.0 on 5.0

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