sale of immovable property through GPA is valid
Ritesh
(Querist) 25 August 2016
This query is : Resolved
hello sir,
Please advise if the immovable property can be transferred through GPA before 11/10/2011.
Ms.Usha Kapoor
(Expert) 25 August 2016
Dear Client,
Sale of Immovable property effected through GPA's is not legally valid unless its a genuine transaction for the GPA doesn't transfer any Right, title or interest in the property under sale in question. Now you what the Supreme Court has to say in this regard.
News
India
North
No property sale on power of attorney: Supreme Court
The court rules that transfer through general power of attorney cannot give ownesrship title to the buyer.
Gyanant Singh
New Delhi, October 13, 2011 | UPDATED 12:11 IST
A +A -
Property sales through the common practice of general power of attorney (GPA) will not give ownership title to the buyer.
In a landmark judgment that is expected to send a large number of property owners into a tizzy, the Supreme Court held that the GPA method of immovable property sales is not a valid form of transfer of property.
A three-judge bench presided over by Justice R. V. Raveendran said that property can be lawfully transferred only through registered sale deeds.
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"A power of attorney is not an instrument of transfer in regard to any right, title or interest in an immovable property," the bench said, after interpreting various provisions of the law concerning property sales. However, the bench said the judgment will not affect "genuine transactions" under the GPA.
The judgment delivered on Wednesday would have an impact on both freehold and leasehold properties and affect the mode of transfer of property in Delhi and the National Capital Region (NCR) where GPA sales are very common. Even though it can cause some hardship to those who have already purchased property through the GPA, the order will help curb evasion of duties, flow of black money into real estate and also save people from being cheated by unscrupulous owners selling the same property to several people.
Navin Raheja, chairman and managing director of Raheja Developers said, "The court's decision will help to curb the circulation of black money to some extent in the real estate sector where titles are manipulated. Besides, many property transactions where prices are rounded off will be affected. However, overall there won't be any significant impact on normal property sales."
J K Agrawal
(Expert) 25 August 2016
GPA Holder can sell immovable property on behalf of principal, if GPA is valid one.
The citation by Ms Kapoor says something different. The citation says that if A gives POA to B, the B can not sell property saying that "I B is owner of property and I sell it to C".
He Can sell property saying "Mr A is owner of property and he sales the property to C and I "B" is POA holder so I sign this document on behalf of A". In this example the seller is A and not B.
Kumar Doab
(Expert) 25 August 2016
Expert Mr. Agrawal has illustrated.
Kumar Doab
(Expert) 25 August 2016
Why specific reference to a date;11/10/2011?
Rajendra K Goyal
(Expert) 25 August 2016
Academic query, state material facts of the problem if any.
Advocate Bhartesh goyal
(Expert) 25 August 2016
Expert K.K.Agarwal is absolutely right.registered and valid power of attorney holder can sell immovable property on behalf of principal.
Guest
(Expert) 25 August 2016
Rightly advised by Shri Agrawal.
adv.bharat @ PUNE
(Expert) 25 August 2016
To have valid GPA owner need to pay full stamp duty & registered it on value of that property then only that GPA is valid.
