Rama Kundurthi (Software Professional) 01 October 2013

Land sale deed and multiple gpas

I am in the process of finalizing a flat to buy. Builder bought from group of people, who appointed two GPAs for the land. When sale deed happened, only one GPA signed. When I asked builder about this, he showed me in legal document about a clause, where these two GPAs can execute jointly or severally. When I approached a public sector bank for loan, they mentioned that this is not a valid clause (jointly or severally) and asking me to get rectification deed for not availability of second GPA in the sale deed (between builder and previous land owners). I would like to know if bank's legal expert has valid point.

If rectification deed is mandatory, should it involve two GPAs and builder?

Thanks and Regards

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1 Replies

T. Kalaiselvan, Advocate (Advocate) 01 October 2013

Mr. Kundurthi,

The banks adopt the safest procedure for sanctioning loans, i.e., based on the opinion of the legal adviser; thus if the bank insists on rectification, get a rectification deed. The rectification deed should be executed by the vendor/s, in your case confirm the vendor/s.