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D.Srinivas (Mid level Manager)     08 February 2012

Gpa stamped by notary

Hi Everyone,

My father had purchased a 40X60 plot in Bangalore way back in 1988.

The property was not registered but it is a GPA, stamped and signed by notary.  The GPA gives almost all the powers to holder related to re-selling, lease. loan and so on. My father on his part did not make any attempt to get the property registered on his name all these years :-(

Recently we are looking to sell this property or go for a joint venture. But prospective buyers think that my father is not the authorized owner of this property and are saying it is impossible to get a bank loan even if my father registers the property on their names.

As per many buyers the only way out is the previous owner (owner previous to 1988) coming and transferring the property directly to their name at registration time.
My father approached the previous owner but the person says it is impossible for him to come and sign for him as it will lead to tax complications for him but assured that he will under no circumstances come and create any trouble regarding the ownership.

Can you please suggest what is the best course of action for us now?

1. Can my father as a GPA holder register the property to anybody?

2. Will it create problems for bank loan?

3. Can we enter a joint agreement on basis of the GPA?

Regards,

D.Srinivas.

 



Learning

 14 Replies

DEFENSE ADVOCATE.-firmaction@g (POWER OF DEFENSE IS IMMENSE )     08 February 2012

Previous owner must come it is the proper solution.

D.Srinivas (Mid level Manager)     08 February 2012

thanks Mr JSDN for the prompt reply, as I mentioned my father has approached the previous owner.

He has made it absolutely clear that he will not get involved in this matter at all. He says if he enters the scene now, he will be liable to pay huge income tax.

Is there anything any alternative for us now?

DEFENSE ADVOCATE.-firmaction@g (POWER OF DEFENSE IS IMMENSE )     08 February 2012

That is the only way. There will not be IT liability. Take opinion of the tax practitioner.

D.Srinivas (Mid level Manager)     08 February 2012

Originally posted by :JSDN -advocate DEFENSE
"
There will not be IT liability. Take opinion of the tax practitioner.
"

Thanks again Mr JSDN, Just to clarify again.

The previous owner says if he involved in the registration the amount for which the plot is being sold becomes his income and he will have to pay tax on it accordingly.  Is this a valid statement ?

I will also take an opinion from a tax consultant.

sridhar pasumarthy (ADVOCATE)     08 February 2012

Dear Srinivas,

Let your previous owner execute a special power of attorney in favour of one of his family members/relative/friend.  So that the POA agent will register sale deed in favour of the proposed purchaser.

Dalip Kumar Chhabra (Advocate)     09 February 2012

I suggest another way. Since the previous owner is alive. Your father acting as a G.P.A. holder of previous owner can himself execute and register a due sale deed of the property in the name of any one of your family member or can transfer the same by registered deed - relinquishment deed - gift deed- for a valuable consideration -of love and affection. I think that There is no need to call in the previous owner. Ur quarry -gathered that since long time, your father is enjoying all rights of actual owner though as GPA , so perhaps the property is mutated or stand in the revenue records in the name of your father also.

       

1 Like

sridhar pasumarthy (ADVOCATE)     09 February 2012

@Dilip Kumar Chhabra,

If my answer to the above query that G.P.A. can straight away execute a conveyance in favour of anybody except when there are any limitations against such act under the G.P.A. deed, is it not correct?

I don't think that the recent judgment of apex court (Suran lamp & industries vs state of Haryana) will affect the transaction under the query.

It is well settled that mutation of entries in municipal or revenue records does not confer title.  Then, what is the necessity for mutation to execute a conveyance?

D.Srinivas (Mid level Manager)     09 February 2012

thanks a lot Mr. Dalip, Mr. Sridhar and Mr Skj.

to add to original query, we have a house close to 1500 sft on the plat and staying there since 1991. Apart from the regular amenities such as electricity and sanitation my father has paid the property taxes till 2005.

As Mr Skj pointed, the GPA is notary stamped and the previous owner has very firmly rejected our requests. In this state of affairs, what is the best solution for us?

I am sorry for repeating the same question again, but I am just hoping I get some solution where we need not involve the previous owner.

Dalip Kumar Chhabra (Advocate)     10 February 2012

Judgment of Suraj Lamps  do not affect this case.  Registration of GPA is required for Delhi some where since 2002. It is case of much more than that notification.  Further it is notorize, well recognised under the law.  The transaction so created on the basis of this GPa  be valid one.

Thanks to all. 

shiv mohan gulati (member)     10 February 2012

I am of  the view that since the GPA is not registered with competent registering authority, as such, your father shall not be having the power to execute a sale deed for immoveable property in favour of any one. In a recent judgement the Hon'ble Supreme Court has declared that the sales made through GPA are not sales in the eye of law and cannot be enforced at law.  It would be better that your father shold prevail upon the previous owner either to give a fresh GPA duly registered under the Registration Act or execute a sale deed on the basis of the agreement entered into by him with your father.     

Dalip Kumar Chhabra (Advocate)     12 February 2012

Supreme court judgment does not restrict use of GPA powers to further execute registered documents in favour of any one

sridhar pasumarthy (ADVOCATE)     12 February 2012

I think registration of GPA for sale of immovable property is not mandatory provided stamp duty is paid as that of on Conveyance. 

D.Srinivas (Mid level Manager)     13 February 2012

thanks everyone for your opinions, just to update, my father has decided to go ahead with registration with no  involvement from the previous owner. Another point we thought was to involve the previous owner as a witness. Do you think this will matter much?

Satish (XXX)     27 November 2013

Dear Dalip Kumar Chhabra,

 

In response to srinivas query,  My father (Original GPA holder) did exactly the same in year 2003  by executing a sale deed on my name.  The Property title is on my name and i have the BBMP A katha and paid tax till 2013 - 2014.  I have a question regarding that GPA document.  We dont have the original copy of the GPA now as it misplaced .  Does that GPA copy will become important ? .  Please advise as i am planning for a bank loan and they might require the same.


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