Purchase of Property from a GPA holder
Suppose a person is acquiring the property through a GPA holder. The said GPA holder has a GPA (executed on a stamp paper of value Rs 100 duly registered) which allows him to do following on behalf of the allottee (who is not a resident of this particular city): -Power of sale,
power to sign and execute the sale deed, receive the consideration, appear
before the Sub-Registrar, present the document for registration, admit
execution and receipt of consideration, deliver possession of the property and
description of the property, full name and address of the person giving the
power and the person to whom it is given.
As per various banks, it is not possible to avail loan for the purchase of property from GPA holder (as the cheque would be drawn in favour of the original allottee and not the GPA holder). However, if the said registration is carried out, the GPA holder can be remunerated through loan against property, which may be then passed on to original allottee based on t&c. Is the course of action legal and what precautions must be taken to ensure the validity of purchase?