narendra 07 June 2017

Buying plot registered 'agreement of sale cum gpa'

I am planning to buy a plot.

Person who owns it now has 'registered agreement of sale cum GPA' by paying market price of the property in 2015. He registered the doc by paying stamp duty and registration fee. EC shows the person who owns the GPA as the owner.In the agreement terms, its also mentioned to execute the sale deed by GPA holder in future to anyone of his family or nominees.

I am planning to buy this plot and have already paid the agreement amount. After reading on multiple forums, I am in a dileama whether GPA holder can legally execute the sale deed and transfer the property to me.

Can experts help me with this? I have already paid 8 lacs out of 23 lacs agreed amount. Can we face any issues in future from the original owner? How come EC shows GPA holder as the owner? Is it legally safe given above things?

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3 Replies

shrenik (lawyer) 08 June 2017

Yes he can transfer No prob Go ahead

Sumit 08 June 2017

Hi Shrenik,

Adding to above query.... As initially only the sale agreement is made between buyer and seller. Suppose as per agreement the registration is promissed by 6 months to 1 year time. What if during this time period, If the goverment value of that plot increased to higher value than purchase value. As developer insist us to show in sale deed as we paid by cash. How do we consider the difference amount in sale deed.

Below is illustration of scenario -

If a project is yet to be approved. So as invester, if i have booked plot at very initial stage before all approvals obtained.

Person has 'registered agreement of sale cum GPA'.

Say initial stage - booked plot at 800 per sft same as the goverment value. So 30*40 plot will cost 9,60,000.

Registeration was as discussed planned in march 2018.

But from last 6 months after booking plot. The government rate is now increased to 1200 per sqft. So at the time of registration in march 2018, as it has to be registered at the value of government price in my case. How can this be shown in sale deed, because the value of property changed to 14,40,000. The difference amount is 4,80,000. As i dont have to pay developer this difference amount as per agreement made. How can i approach legally to this. Because i dont want developer to show as difference amount paid by cash by me. As i dont want any problem in future. kindly advice and guide in this scenario. Thanks in advance.

narendra 08 June 2017

Hi Shrenik

Thank you very much for your response on this. Can the GPA holder in this case can sell it to any one or to his blood relatives only? Agreement says 'nominees'. Does it mean some relatives only?

Thanks