nagaraj 14 January 2015

Need suggestion to buy the plot or not

X is the original plot owner who made the GPA to Y. The GPA was registered in year 2000. I made the sale agreement to buy the property and paid 4 lakhs in cash and rest wanted to go through bank loan. Applied the bank loan and it was approved. Finally bank said they will release the DD in the name of the original owner X, but the GPA holder Y saying they need the DD in their name. As per the bank it is legally correct that they will release the DD in the name of the Original owner X. Even in the GPA it is mentioned that GPA holder Y can sell, but not where mentioned anything about the financial accepts.

Now the GPA holder Y is saying that he will register a new sale deed in her wife name next week. Then I can buy directly from GPA owner’s wife through sale deed.

When I did some investigation and I found that the original owner X has died a year back, now the GPA is invalid, this matter I did not discuss with the GPA holder. Before making the agreement GPA holder Y mentioned me that the original owner is still alive and now he is ill and he staying in abroad.

My agreement is valid for another 20 days, Is it safe to proceed to buy or what actions do I need to take to recover my money. My concern is that they will not refund very easily as I spoke and they are saying they will register through the sale deed from the GPA holder Y wife.

My concern

Is it safe to buy from the wife of the GPA holder Y after its registered new sale deed? As there will be a one transaction and the stamp duty will be paid?
Will be there any future concern for me if original owner’s wife or children claims. Who will be held responsible? Will it affect my owner ship on the plot in future?
If I decide to ask the advance money back, and if they say no, what is the legal action I can take on them?
Do I need take legal action before my agreement expires?
Can I tell them the I found out that original owner X is dead (this may cause issue in getting my money back)

Please advise me earliest as possible as the GPA holder Y is registering the plot in his wife through sale deed in 2 days. Appreciate if someone can answer my concern.

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4 Replies

niteshchhabra 14 January 2015

Dont buy this property as the GPA is null & void in the eyes and all the rights of the property is inherited by the Class 1 heirs of the deceased original owner.

you can take action to recover your money even till 3years from the date of expiry of your agreement by filing Suit for Recovery, do file a police complaint as well for fraud committed by the GPA holder

Anand Bali Adv. (Advocate Solicitor & Consultant) 15 January 2015

I partially appreciate the advice of Mr Chabra,

In this case you have not mentioned any where that in who's physical possession is the property, as the physical possession is a must in case of any sale deed. As with out the transfer of the physical possession there is no sale complete.

In case the GPA holder gets sale deed done in the favour of his wife and his wife takes possession of the property in her hand you are advised to stay calm for at least a year and only than after go for a sale deed with her, meanwhile you get prepare a new agreement with the party that in case the subject property will be registered in the name of the wife of GPA holder you are ready to get it purchased the same property after a year on such an such amount and for which you already have given you as an advance of Rs 4 Lac to his wife as a real owner of the property.

Otherwise you are not advised to purchase the property in any circumstances as limitation required for getting cancel the fraudulent deed of sale is three years from the date of its knowledge.

T. Kalaiselvan, Advocate (Advocate) 18 January 2015

The GPA deed is invalid and infructuous as on date because the principal has died. Therefore the sale deed proposed to be made in favor of the wife of the GPA holder now will also be invalid in the eyes of law. If the class I legal heirs file a case claiming the property,the same will be ordered to return to them. Better shed away the deal and take back the money. If he is refusing to return, you may issue a legal notice to the GPA holder stating that since his principal has already died the holder is not having power anymore to proceed with the execution of sale deed on behalf of the dead person hence instruct him to refund the advance amount subsequent to which you may file a money recovery suit.

nagaraj 02 February 2015

My agreement with owner is getting finished in 3 days, since last week he is saying that he will return the paid advance of 4 Lakhs. Till now I haven’t received the advance.

My concern do I need to file a Suit for Recovery & police complaint before my agreement expires. Does the agreement valid after the expired date of 3 Months?

Earlier it was mentioned by nitesh chhabra that I have 3years from the date of expiry of the agreement by filing Suit for Recovery. One of my friend said the legal action has to be taken before the agreement expires.