General power of attorney
Balasubramanyam Doddanari
(Querist) 18 August 2021
This query is : Resolved
MY BROTHER IS STAYING IN LOS ANGELS-USA. WE ARE HAVING A PARENTAL PROPERTY IN INDIA FOR WHICH HE HAS EXECUTED A SPECIAL GPA FOR GETTING BANK LOAN PURPOSE ONLY (NOT FOR SALE) IN 2007 WHEN HE CAME TO INDIA AND THAT WAS REGISTERED IN SRO . AND NOW WE BOTH DECIDED TO SELL THE PROPERTY AND FOR THAT HE WANTS TO GIVE ME SALE RIGHTS BY CANCELLING THE PRIOR GPA (WHICH WAS GIVEN IN 2007) AND FRESHLY EXECUTE SALE GPA ON BEHALF OF ME. NOW MY QUESTION IS, IS IT POSSIBLE TO EXECUTE CANCELLATION OF OLD GPA AND EXECUTION OF SALE GPA IN A SINGLE DOCUMENT FRO USA.
P. Venu
(Expert) 19 August 2021
Yes, he can. But it is not necessary that former GPO e cancelled.
kavksatyanarayana
(Expert) 19 August 2021
Your brother shall execute a General Power of Attorney for cancellation of old GPA and also now for sale in favour of you. Accordingly, get to be prepared for the GPA in India and send it to your brother. Then he will sign before the Consulate/Embassy/Notary Public in the USA and resend it to you. After receipt in India, you shall get the GPA to be validated and next to be presented before the SR concerned.
Dr J C Vashista
(Expert) 20 August 2021
Earlier SPA (2007) stands exhausted on getting bank loan (the purpose for which it was granted is complete) hence no need to cancel it.
Fresh GPA / SPA is needed for executing sale documents /transaction, which may endorse cancellation of earlier SPA / GPA.
Balasubramanyam Doddanari
(Querist) 20 August 2021
THANKS FOR YOUR REPLY.
BUT THE BUYER BANK LAWYER IS ASKING US TO PROVIDE CANCALLATION DEED OF OLD GPA AND EXECUTE FRESH SALE GPA.
kavksatyanarayana
(Expert) 20 August 2021
In my opinion, the previous GPA/SPA shall be cancelled and a Fresh GPA(General Power of Attorney is a must for all the purposes) for sale shall be executed.
Balasubramanyam Doddanari
(Querist) 20 August 2021
IS IT POSSIBLE TO MENTION CANCELLATION OF OLD SPECIAL POWER OF ATTORNEY AND EXECUTION OF SALE GPA IN SINGLE DOCUMENT. CAN IT BE EXECUTED FROM USA.
K Rajasekharan
(Expert) 20 August 2021
The query has already been answered properly by some experts. However let me add yet another.
It is possible to execute both a new power of attorney for authorising you for sale of his part of the share in the joint property, and a statement declaring the cancellation of the earlier power of attorney as well, in one document.
Actually, the latter part is not at all necessary if you get a power of attorney for sale and you are involving the bank in the sale somehow as well. If you sign the sale document the earlier power of attorney becomes infructuous or inoperative.
To cancel a power a power of attorney what is actually needed is just to inform the power of attorney holder it has been cancelled in writing. At the moment it is received the power of attorney ceases to be a valid document.
If the buyer bank lawyer is insisting for cancellation of very old power of attorney for bank loan purpose, even when the power of attorney holder is ready to sign the sale document of the same property involving the bank, then there is something wrong with the bank lawyer.
P. Venu
(Expert) 20 August 2021
But that is the problem with the bank lawyers. They are guided by "zero error syndrome " than the basic concepts of law.
K Rajasekharan
(Expert) 20 August 2021
An overview article prepared by me on the topic ‘Power of Attorney’, which answers a few such questions and meant for general reading by the laymen, is available at https://lawwatch.in/law-relating-to-power-of-attorney/
