Reclusive CS (Tech Lead) 30 January 2013

Can property bought from a registered gpa?

Dear Sir,

I am planning to buy a BMRDA property with A Khata in Bangalore by taking loan. It is a gated community.

The owner of the property is abroad. During his recent visit to INDIA, he has given GPA to his brother with all rights over the property which also includes that of disposing the property. The GPA is registered in Bangalore. The cost of stamping is 380 Rs and 100rs is the fee as listed on back of the GPA agreement. All original docs are with the brother in bangalore itself

(Just an additional piece of information though it may be irrelevant - The property was originally bought by the owner also through his brother 10 years back by giving him a specific power of attorney to just buy the plot on his behalf at that point in time)

Now my question is:

1) is it safe for me to get the property registered from his brother in Bangalore as he is the GPA holder - he would be representing his owner brother who is abroad ?

2) Is the GPA done by them (which is registered) good enough (for blood relations, the 5% stamp duty need not be paid?) or should I request for any additional documents wrt GPA?

3) Should the amount be transferred to the owner who is abroad or his brother who has GPA?

Are such transcations safe and what other measure should i undertake to ensure my hard earned money is safe?

Thanks,

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5 Replies

Aboobacker (Advocate) 30 January 2013

if the owner of the property is alive and the GPA is not cancelled, the GPA is valid and registration and all trasactions can be made with the GPA holder. if the GPA is executed in favour of brother no additional stamp duty is necessary. the amount can be paid to the GPA holder.

Aboobacker K.T

Advocate Vishnu (Advocate) 31 January 2013

Unless the seller comes in person before the sub registrar's office to execute the sale deed, I would advise you to avoid such transactions.

Reclusive CS (Tech Lead) 31 January 2013

Dear Vishnu Sir,

Thanks for the advice. But, the owner is abroad and that is the reason he has given GPA in his brother's favor so that the transaction can be done on his behalf. Is it still risky?

Note that it is a simple registered GPA for which they have paid around 380 rupees and got it registered in Bangalore. I got to know that if the GPA is done for blood relations, then this is how it is being done.

Thanks,

Reclusive CS (Tech Lead) 31 January 2013

Dear Aboobaker,

Thanks for your reply. Owner is alive for sure. But, how do I verify that the GPA is stil valid ? (it has got executed a couple of weeks back when the owner visited INDIA and went back after two weeks). Also, the stamp duty they have paid is just 380/- and have got it done 2 rs. stamp paper. both have signed on all sheets of the papers. So, would this be a clean transaction?

Advocate Vishnu (Advocate) 31 January 2013

If the GPA holder had given due consideration ( ie paid the appropriate stamp duty charges that would have been paid , had the seller resided in India), the GPA holder is free to sell the property . From your query, I can see, this has not happened. Hence I would advise you to refrain from such transactions.