GPA cum Sell Agreement
Ali
(Querist) 06 June 2016
This query is : Resolved
Dear Sir,
Is it legal to buy a non agri plot from registered GPA cum sell agreement holder in telangana region?
Since Supreme court in 2011 considered this deed invalid in one of its judgement. What will be the consequences if we enter into the deal with this type of GPA holders?
What precautions and due diligence should be perform?
After buying what if GPA being revoke by principal party?
Appreciate if you could shed some light on this subject.
Thanks
Alimir
kavksatyanarayana
(Expert) 09 June 2016
If the sale documents are being executed by a person holding power of attorney on behalf of the owner, the said power of attorney should be scrutinized thoroughly. The person must not only possess the power to sell property, the power of attorney should also be validly executed. An agreement holder who also has a power of attorney to sell the land and/or building is normally a developer. Alternatively, a person may have paid the entire consideration to the owner and holds on to the property for some time to sell it at a later date for a profit. The sale will be effected by the power of attorney holder on behalf of the owner. Such power of attorney must be properly stamped and registered (if it is coupled with sale agreement/development agreement/given for consideration) . It should also not be revoked.
T. Kalaiselvan, Advocate
(Expert) 10 June 2016
The important point to be ensured while getting a sale deed executed and registered through a GPA agent is to confirm that the principal is alive or not.
The principal has to ratify the sale deed or can appear before the registrar in person while execution of the sale deed in the capacity of the original title holder.
The registered sale agreement existing in the name of the GPA agent has to be cancelled by both the vendor and the buyer of the said registered sale agreement so that the encumbrance reflecting in the registrar's office can be removed.
Above all, a legal opinion from a local lawyer by producing the relevant documents to be obtained before getting the sale deed executed.
