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Tarun Garg (QA Head)     25 October 2012

Property purchase via gpa holder

Dear LCI property team, I would be highly grateful kindly to advice me on the following matter. Details of the property being purchased by me- I am purchasing a property (flat) where the Sale deed will be executed in my name and signed by the GPA holder who is the appointed attorney and also the real mother of the owner. The absolute owner of the property-in-question has clear title via deed of conveyance executed in his name in 2008 and GPA is registered in 2012 recently. The owner has since left for abroad and is unable to manage his property-in-question. By signing the GPA, he has empowered his mother not only to look after all matters pertaining to his property-in-question, including selling the property-in-question and signing the related papers as his general attorney, but through this GPA, his mother is also appointed as his attorney to manage his other affairs like selling or buying other properties in his name and/or performing any share transactions or other transactions in his name. My queries in this regard- 1. Noting that the Hon’ble SC passed an important verdict on property transfer through GPA on 12 October 2011, what will be the legal sanctity of the GPA in this case? 2. Is it okay if GPA is registered at Sub-registrar office located in one city of the state of U.P. and the property-in-question is registered at Sub-registrar office in some other city of U.P.? 3. Is this GPA legally validated for transacting the sale of the property-in-question noting that the GPA is not irrevocable and also rights to manage other affairs of the owner are also given to the attorney through the GPA? 4. As a buyer of the property-in-question, do I have the authority to collect the above GPA document in original? 5. Initially reluctant to hand over the GPA in original, the GPA holder is now insisting that I should provide her receipt of the GPA in a photocopy and she will also get a certified copy of the GPA from the relevant Sub-registrar office to use for managing her son’s other matters. Is she legally entitled to do so, particularly assuming GPA document is falling in the chain of deeds of the property-in-question? 6. What type of evidence, that the owner of the property-in-question is alive as on date, should be given to the bank sanctioning the home loan? Regards Tarun


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 2 Replies

ajay sethi (lawyer)     25 October 2012

since power of attorney has been granted by son in favour of his mother then she can sell the flat . however power of attorney should be regsitered . the supreme court judgement dosent prohbit power of attorny being given in favour of close family relatives . you shjould contact a local alwyer . let him   draft the agreement to protect your interests .

 

you can  request the seller to handover original power of attorney .bank whle sanctioning loan would do due diligence . check whether property taxes paid till date . NOC of society is obtained etc  

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Tarun Garg (QA Head)     25 October 2012

Dear Mr. Ajay Sethi Many thanks for your valuable advice. The agreement to sell includes a clause giving details of the GPA, and also makes the seller accountable to pay for any previous charges, taxes, bills etc and any sort of encumbrances found today or at a later stage after possession is delivered. The two things which are still bothering me are- 1. Seller is planning to invest in other property(ies) through his attorney using the certified copy of the same GPA as he will not return to India in the near future. Can they do so and will it have any adverse impact on my title to the property? 2. Also will there be any harm to my title if the GPA is cancelled in future by the seller as this is revocable. Regards Tarun

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