narendra 23 May 2017

Issues in buying plot registered as irrevocable gpa

Dear experts,

I am planning to buy plot whose layout and society is formed in 1999. Its HYDERABAD ALLWYN EMPLOYEES HOUSING COMMITTE. This particular plot was first sold to x in 1999 and then to Y [from x] in 2005 and to z [from Y] in 2015. In 2015, document was registered as AGREEMENT OF SALE CUM IRREVOCABLE GENERAL POWER OF ATTORNEY WITH POSESSION instead of SALE DEED.

1. Is there any risk in buying such property which refers to the terms like GPA?

2. Does the previous owner need to be present and sign the current sale deed, if I decide to buy it?

3. What are the precautions to be taken to enter into sale agreement?

4. When do people prefer to use this word AGREEMENT OF SALE CUM IRREVOCABLE GENERAL POWER OF ATTORNEY WITH POSESSION instead of SALE DEED?

Thanks in advance.

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6 Replies

Hardeep (Business) 23 May 2017

Sale through a GPA has been clearly held invalid by the Supreme Court. Look at :

Supreme Court of India

Suraj Lamp & Industries (P) ... vs State Of Haryana & Anr on 11 October, 2011

Author: R V Raveendran

Bench: R.V. Raveendran, A.K. Patnaik, H.L. Gokhale

Reportable
IN THE SUPREME COURT OF INDIA
CIVIL APPELLATE JURISDICTION
SPECIAL LEAVE PETITION (C) NO.13917 OF 2009

for a full elaboration on this

narendra 23 May 2017

Thanks Hardeep for the response.

In this case, document says 'AGREEMENT OF SALE CUM IRREVOCABLE GENERAL POWER OF ATTORNEY WITH POSESSION'. Does this fall under above category?

Ms.Usha Kapoor (CEO) 24 May 2017

In a number of cases The Supreme court frowned u[pon sale through GPA. such as Suraj Lamp &Industries Vs.State Of Haryana 11th October 2011 Judgement rendered by RV Ravindran, AK Patnaik, and Gokhale Bench

narendra 24 May 2017

Thank you Usha and all for the response and help on it.

narendra 24 May 2017

In this particular case, documented is registered and have the doc number generated by Sub registrar office. Registration charges and stamp duty is also paid.

Is it still problem to buy such property? Given that document is registered, correct owner is showing up in EC though document says 'AGREEMENT OF SALE CUM IRREVOCABLE GENERAL POWER OF ATTORNEY WITH POSESSION'

narendra 24 May 2017

In this particular case, document is registered and have the doc number generated by Sub registrar office. Registration charges and stamp duty is also paid.