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sasi (none)     08 September 2014

Gpa holder died

Hi,

  My father had GPA on a property (farm Land) and he made conditional sale agreement to another person. He died recently, I would like to know,

1. What is the validity of Sale Agreement my by a GPA holder who is not alive.

2. If the purchaser not paid the money whatever agreed in the sale agreement, will the property belongs to us (as we are sons of the GPA holder)

3. If the purchaser pays the money as per the sale agreement, will the purchaser entitles the property.

 

Please let me know.

Thanks

Shashi.

 

 



Learning

 8 Replies

Hardeep (Business)     09 September 2014

If the GPA was irrevocable , for consideration and for securing the interest of the Agent, it does not terminate upon the Agent's death ( s. 202, Indian Contract Act ). In other cases the Holder is simply the agent of the principal and so,  on the holder's death the POA terminates. In cases of Property, the GPA should be registered.

So, in the former case upon the death of the Agent, the GPA devolves upon the legal heirs.Sale Agreement made by him while alive can't be contested by heirs normally ( doctrine of equitable conversion holds )

as for the next sale it depends upon the conditions in sales agreement. If they have not been complied with the legal heirs can move towards getting the sale declared void.

Dr J C Vashista (Lawyer)     09 September 2014

GPA expired with the executor. Contact, consult and engage a local lawyer.

Hardeep (Business)     09 September 2014

My understanding of the query is that it is not the executor but the holder who has expired. Even if the executor has expired S. 202 should hold. Seniors may please correct with case law if possible...

T. Kalaiselvan, Advocate (Advocate)     13 September 2014

The querist query is that his father was a GPA holder, he entered into a sale agreement with a prospective purchaser, during the valid pendency of the agreement the power agent died, here  upon the death of the power agent the POA deed in his favor becomes infructuous/cancelled automatically and the principal will be liable for execution of the sale deed to the purchaser after receiving the balance of sale consideration amount, if any, within the time stipulated in the sale agreement.  The legal heirs of power agent do not have any rights over this issue.

Now to the questions of author:

1.  Explained above in detail.2

2.  No, the property will go back to the principal (owner)

3.  Upon enforcing the agreement, the principal (owner) will execute a registered sale deed in favor of the purchaser.

1 Like

Hardeep (Business)     15 September 2014

For my clarification, for example :


A : Original Owner of a plot

B ; GPA Holder for the plot. GPA is irrevocable and registered, consideration being Rs. 2 lacs

C : Buyer of the plot from B. Sales Agreement made for Rs.  5 lacs of which Rs.  3 lacs paid to B

D and E : Heirs of B

Say B  dies.

Who is now the  Owner of the plot ?

If C wants to proceed further, how can he get the Sales Agreement executed ?

Appreciate clarifications with case/ law citations, if possible.

Thanks much

 

 

T. Kalaiselvan, Advocate (Advocate)     15 September 2014

You have an answer in my previous post itself.  Di is only a power holder and not owner of the property, in the eye of law, all his transactional activities were carried out only on behalf if his principal and not done anything on his own, therefore the money received towards advance of sale consideration should have been handed over to the principal only, therefore only the principal is liable for execution of registered sale deed in favor of C (purchaser),  the legal heirs of power holder (B) are no where liable for the amount received by the power holder  or his activities as an agent to his principal.  The law is very clear, you don't need any citation for this simple law, however look for one yourself from the websites.

Hardeep (Business)     15 September 2014

Thank you Sir.  I searched and specifically for sales of Immoveable property a registered Conveyance  Deed is required and a GPA doesn't transfer any interest

case : Suraj Lamp and Pvt. Ltd. v/s State of Haryana and another.- Oct. 2011 . held :

- The General Power of Attorney (GPA)  method of immovable property sales is not a valid form of transfer of property.

- A power of attorney is not an instrument of transfer in regard to any right, title or interest in an immovable property," the bench said, after interpreting various provisions of the law concerning property sales.

- Any contract of sale (agreement to sell) which is not a registered deed of conveyance (deed of sale) would fall short of the requirements of sections 54 and 55 of TP Act and will not confer any title nor transfer any interest in an immovable property (except to the limited right granted under section 53A of TP Act).

- Section 54 of TP Act makes it clear that a contract of sale, that is, an agreement of sale does not, of itself, create any interest in or charge on such property.

- Nothing prevents affected parties from getting registered Deeds of Conveyance to complete their title. The said `SA/GPA/WILL transactions' may also be used to obtain specific performance or to defend possession under section 53A of TP Act.

 

=====

Thank you again for your clarifications and interest.

 

 

 

 

 

 

 

ranga rao   08 July 2015

hi, sir

please give the solution to the situation mentioned.

1) 'A' is the owner and gave registered GPA cum Sale to 'B' in the year 2006 after taking full consideration, to an extent of say 1000 sq.yds.

2) If 'B' dies , what is the validity of GPA cum Sale document, and whether legal heirs having any right over the property because of full payment of consideration by 'B' to 'A'

3) If 'A' dies what is the validity of GPA cum Sale document. And what about the right of legal heirs of both 'A' and 'B'.

4) If 'A' registered the 2nd GPA cum Sale to 'C' in the year 2007 , after 6 months of execution of 'B' document to an extent of say 800 Sy.Yds of the same property which was earlier executed to 'B' in the year 2006, and the recitals in the document says that the full consideration was paid by 'C' to 'A'. Which document is valid ?

5) 'B' executed a registered sale deed to 'D' in the year 2014.

6) 'A' executed a registered sale deed to 'E' in the year 2014 prior to the sale deed of 'D' along with his son. The 'A' executed the 'B' and 'C' documents without his son.

So, who get the right over the property in this situation and what is the position and right of the person 'D' in this case. What is the case of 'E' .

please give the solution and thanks in advance.

 

 

 

 

 


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